The Washington Report
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November 17, 2021
Note to Subscribers
Due to the current environment, information is changing at a rapid rate. While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change or be revised after our publication deadline.
Health
Federal Court Extends Enforcement of COVID-19 Vaccine-or-Test Requirement for Private Employers
On November 12, 2021, the U.S. Federal Court of Appeals for the Fifth Circuit extended its original November 6 stay temporarily halting enforcement of the COVID-19 vaccine-or-test requirement (also referred to as the “emergency temporary standard”) for employers with 100 or more employees.
CMS Releases 2022 Medicare Parts A & B Premiums and Deductibles; Medicare Part D Income-Related Monthly Adjustment Amounts
On November 12, 2021, the Centers for Medicare & Medicaid Services (CMS) released the 2022 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs, and the 2022 Medicare Part D income-related monthly adjustment amounts.
The Medicare Part A inpatient hospital deductible that beneficiaries pay if admitted to the hospital will be $1,556 in 2022, an increase of $72 from $1,484 in 2021. The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2022, beneficiaries must pay a coinsurance amount of $389 per day for the sixty-first through ninetieth day of a hospitalization ($371 in 2021) in a benefit period and $778 per day for lifetime reserve days ($742 in 2021). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $194.50 in 2022 ($185.50 in 2021).
The standard monthly premium for Medicare Part B enrollees will be $170.10 for 2022, an increase of $21.60 from $148.50 in 2021. The annual deductible for all Medicare Part B beneficiaries is $233 in 2022, an increase of $30 from the annual deductible of $203 in 2021.
Since 2011, a beneficiary’s Medicare Part D monthly premium is based on income. These income-related monthly adjustment amounts affect roughly 8 percent of people with Medicare Part D. These individuals pay the income-related monthly adjustment amount in addition to their Part D premium. Part D premiums vary by plan and roughly two-thirds are paid directly to the plan, with the remaining deducted from Social Security benefit checks. The Part D income-related monthly adjustment amounts are all deducted from Social Security benefit checks. The 2022 Part D income-related monthly adjustment amounts for high-income beneficiaries are shown in a table found on the CMS Fact Sheet. Please refer to the CMS Fact Sheet below for specific provisions.
The CMS Fact Sheet is available here.
The CMS Federal Register posting of Calendar Year 2022 Inpatient Hospital Deductible and Hospital and Extended Care Services Coinsurance Amounts is available here.
(The Notice will be published in the Federal Register on November 17, 2021.)
The CMS Federal Register posting of Medicare Part B Monthly Actuarial Rates, Premium Rates, and Annual Deductible beginning January 1, 2022, is available here.
(The Notice will be published in the Federal Register on November 17, 2021.)
For a more detailed Aon bulletin, please see CMS Issues 2022 Medicare Premiums, Deductibles, and Coinsurance Amounts in the Publications section of this newsletter.
Other HR/Employment
DOL, NLRB, and EEOC Announce Joint Initiative to End Retaliation, Promote Workers’ Rights
On November 10, 2021, the Equal Employment Opportunity Commission (EEOC), Department of Labor (DOL), and the National Labor Relations Board (NLRB) announced a joint initiative to raise awareness about retaliation issues when workers exercise their protected labor rights. The initiative will “include collaboration among these civil law enforcement agencies to protect workers on issues of unlawful retaliatory conduct, educate the public and engage with employers, business organizations, labor organizations, and civil rights groups in the coming year.” The initiative launches on November 17 with a virtual dialogue with the employer community focused on the importance of workers’ anti-retaliation protections for those exercising their rights, and the agencies’ “shared commitment to vigorous enforcement.”
The news release is available here.
DOL Relaunches EARN Website to Assist Public and Private Sector Workplaces to Be More Inclusive for Those With Disabilities
On November 9, 2021, the DOL announced the newly redesigned Employer Assistance and Resource Network on Disability Inclusion (EARN) website. The website, “supported cooperatively by the department’s Office of Disability Employment Policy and Cornell University…offers resources to help employers of all sizes and industries recruit, hire, retain, and advance people with disabilities and develop disability-inclusive workplace cultures. According to the DOL, the redesigned website “highlights four essential components of the employment lifecycle — recruitment, hiring, retention, and advancement — and explores how including people with disabilities in each of these areas helps employers meet their workplace diversity, equity, inclusion, and accessibility goals.”
The news release is available here.
The updated EARN website is available here.
DOL Announces Notice of Proposed Recission on Religious Exemption
On November 8, 2021, the DOL announced a proposal to rescind the final rule “Implementing Legal Requirements Regarding the Equal Opportunity Clause’s Religious Exemption.” The final rule was in effect since January 8, 2021. The Federal Register published the notification of proposed recission on November 9. Rescinding the rule has the effect of returning DOL policy and practice to those that were operative during previous Presidential administrations.
“Enforced by the Department’s Office of Federal Contract Compliance Programs (OFCCP), Executive Order (EO) 11246 prohibits federal contractors and subcontractors from discriminating in employment decisions on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. The order contains a religious exemption for certain religious corporations, associations, educational institutions, and societies with respect to the employment of individuals of a particular religion. The EO 11246 religious exemption is based on the religious exemption in Title VII of the Civil Rights Act of 1964. When analyzing potential discrimination under EO 11246, OFCCP follows the principles of Title VII, which prohibits employers from discriminating against applicants and employees on the basis of race, color, religion, sex (including pregnancy, sexual orientation, and gender identity), or national origin. The final rule that took effect on Jan. 8, 2021, departed from OFCCP’s long-standing policy and practice of applying Title VII principles and case law to interpret the exemption. OFCCP’s proposed rescission would preserve EO 11246’s religious exemption which would still be available to qualifying contractors. The proposed rescission would ensure that the EO 11246 religious exemption is applied consistent with principles and case law interpreting the Title VII religious exemption.”
The news release is available here.
The notification of proposed rescission is available here.
IRS Provides Tax Inflation Adjustments for 2022
On November 10, 2021, the Internal Revenue Service (IRS) announced in Revenue Procedure 2021-45 the tax year 2022 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2021-45 provides details about all these annual adjustments. Items that may be of interest to employers are provided below. Please refer to the actual Revenue Procedure for all tax information.
Qualified Transportation Fringe Benefit: For tax year 2022, the monthly limitation for the qualified transportation fringe benefit is $280, as is the monthly limitation for qualified parking. This amount increased $10 from the tax year 2021 benefit of $270.
Health Flexible Spending Arrangements: For the taxable years beginning in 2022, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements is $2,850, an increase of $100 from the 2021 tax benefit of $2,750. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $570, an increase of $20 from taxable years beginning in 2021.
Medical Savings Accounts: For tax year 2022, participants who have self-only coverage in a Medical Savings Account, the plan must have an annual deductible that is not less than $2,450, up $50 from tax year 2021; but not more than $3,700, an increase of $100 from tax year 2021. For self-only coverage, the maximum out-of-pocket expense amount is $4,950, up $150 from 2021. For tax year 2022, participants with family coverage, the floor for the annual deductible is $4,950, up from $4,800 in 2021; however, the deductible cannot be more than $7,400, up $250 from the limit for tax year 2021. For family coverage, the out-of-pocket expense limit is $9,050 for tax year 2022, an increase of $300 from tax year 2021.
Qualified Adoption Expenses: The maximum credit allowed for adoptions is the amount of qualified adoption expenses up to $14,890 for taxable years beginning in 2022, up from $14,440 for 2021.
For additional information, please see IRS Issues 2022 Benefit Contribution Limits in the Publications section of this newsletter.
IRS Information Release 2021-219 is available here.
IRS Revenue Procedure 2021-45 is available here.
Aon Publications
CMS Issues 2022 Medicare Premiums, Deductibles, and Coinsurance Amounts
On November 12, 2021, the Centers for Medicare & Medicaid Services (CMS) released the 2022 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs.
The Aon bulletin, which provides additional details about the 2022 adjustments, is available here.
IRS Issues 2022 Benefit Contribution Limits
On November 10, 2021, the Internal Revenue Service (IRS) issued Revenue Procedure 2021-45, updating the indexed limitations for certain employee benefit programs.
The Aon bulletin is available here.
Biden Administration Releases Rules on Vaccination Mandate for Health Care Providers
Health care providers that participate in Medicare and Medicaid programs must require their staffs to be vaccinated against COVID-19 by January 4, 2022, according to an interim final rule (IFR) released on November 4, 2021, by the Centers for Medicare & Medicaid Services (CMS).
CMS’s IFR differs from the Emergency Temporary Standard (ETS) issued by the Occupational Safety and Health Administration (OSHA) on the same day in two significant ways:
- CMS’s IFR applies only to Medicare- and Medicaid-certified health care providers and suppliers; and
- CMS’s IFR, unlike the OSHA ETS, does not offer providers the option of weekly testing for staff.
The IFR requires providers and suppliers to receive the first dose of vaccination by December 6, 2021, and to complete the vaccination procedures by January 4, 2022, unless the staff member receives an accommodation under federal civil rights laws.
The Aon bulletin is available here.