The Washington Report
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December 21, 2022
Holiday Publication Schedule
The Washington Report will be taking a holiday hiatus. Look for your next Washington Report on Wednesday, January 11, 2023. Happy holidays and New Year!
Executive
President Biden Signs FY 2023 Appropriations Bill Into Law; Funds Government Through December 23
On December 16, 2022, President Biden signed into law the Further Continuing Appropriations and Extensions Act 2023 (H.R. 1437 - Public Law No: 117-229) which provides fiscal year (FY) 2023 appropriations to federal agencies through December 23, 2022, for continuing projects and activities of the federal government.
The full text of the law (H.R. 1437 - Public Law No: 117-229) is available here.
(Note: At the time of publication, Congress was negotiating another $1.7 trillion spending bill (H.R. 2617 - Consolidated Appropriations Act, 2023), with hopes of approving the legislation to avoid a government shutdown on December 24. The bill would provide funding for government agencies through September 30, 2023. Please note that provisions may change during consideration. Readers should refer to the legislative text for the latest updates.)
Health
HHS Issues Proposed Rule Standardizing Electronic Health Care Attachments Transactions and Electronic Signature Processes
On December 19, 2022, the Department of Health and Human Services (HHS) issued a proposed rule that would adopt standards for “health care attachments” transactions, such as medical charts, x-rays, and provider notes that document physician referrals, and office or telemedicine visits. The modifications to the adopted HIPAA transactions would support both health care claims and prior authorization transactions, standards for electronic signatures to be used in conjunction with health care attachments transactions, and a modification to the standard for the referral certification and authorization transaction. According to the press release, “HIPAA and the Affordable Care Act require the HHS Secretary to adopt a health care claim attachment standard. HHS is proposing these new requirements on HIPAA-covered entities, which include health plans, health care clearinghouses, and health care providers who electronically transmit any health information in connection with transactions for which HHS has adopted standards.” Comments on the proposed rule are due by March 21, 2023.
The news release is available here.
A Fact Sheet is available here.
The proposed rule is available here.
CMS Issues Proposed Rule on Medicare Program; Contract Year 2024 Policy and Technical Changes to the Medicare Advantage Program, Medicare Prescription Drug Benefit Program, Medicare Cost Plan Program, Medicare Parts A, B, C, and D Overpayment Provisions of the Affordable Care Act and PACE; Health Information Technology Standards and Implementation Specifications
On December 14, 2022, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule that would revise the Medicare Advantage (Part C), Medicare Prescription Drug Benefit (Part D), Medicare cost plan, and Programs of All-Inclusive Care for the Elderly (PACE) regulations to implement changes related to Star Ratings, medication therapy management, marketing and communications, health equity, provider directories, coverage criteria, prior authorization, passive enrollment, network adequacy, identification of overpayments, formulary changes, and other programmatic areas. This proposed rule would also codify regulations implementing Section 118 of Division CC of the Consolidated Appropriations Act, 2021, Section 11404 of the Inflation Reduction Act, and includes a large number of provisions that would codify existing sub-regulatory guidance in the Part C, Part D, and PACE programs. The proposed rule would also amend the existing regulations for Medicare Parts A, B, C, and D regarding the standard for an identified overpayment. Comments on the proposed rule are due by February 13, 2023.
The news release is available here.
A Fact Sheet is available here.
The proposed rule is available here.
IRS Releases Text of 2022 Instructions for IRS Forms 1094-B/C and 1095-B/C
On December 14, 2022, the Internal Revenue Service (IRS) posted the 2022 Instructions for the following health coverage forms on its website:
- Form 1094-B Transmittal of Health Coverage Information Returns;
- Form 1095-B Health Coverage;
- Form 1094-C Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns; and
- Form 1095-C Employer-Provided Health Insurance Offer and Coverage.
The text of the 2022 Instructions for IRS Forms 1094-B and 1095-B is available here.
The text of the 2022 Instructions for IRS Forms 1094-C and 1095-C is available here.
Other HR/Employment
DOL and IRS Renew Employee Misclassification MOU
On December 15, 2022, the Department of Labor (DOL) and the Internal Revenue Service (IRS) renewed a Memorandum of Understanding (MOU) and added a streamlined process for joint referrals and closer coordination to prohibit businesses from misclassifying workers and denying them their full wages, benefits, and protections under the law. In 2011, the DOL and the IRS first entered into an MOU to enable the offices to use their resources to promote employer compliance with obligations to pay employees and related employment taxes. Since then, the DOL and IRS have shared information when an investigation discovered that an employer had misclassified employees. By sharing information, “the agencies reduce the illegal use of misclassification and the tax gap while improving compliance with federal labor laws.”
The news release is available here.
The updated MOU is available here.
Aon Publications
IRS Permanently Extends Due Date for Sending Form 1095-C to Individuals
The Internal Revenue Service (IRS) is permanently extending by 30 days the reporting deadline for employers and insurers to furnish Forms 1095-C and 1095-B to individuals. The IRS by final rule adopts the 30-day extension and also marks the end of penalty relief for information reporting errors that were made in “good faith.”
The Aon bulletin is available here.