The Washington Report
April 10, 2024
Note to Subscribers
The Washington Report will not be published on April 17, 2024. Look for your next Aon Washington Report on Wednesday, April 24.
Legislative
Congress Reconvenes
Congress returns to the Hill this week after spring recess.
Health
CMS Releases Final Regulations on Contract Year 2025 Medicare Advantage and Part D
On April 4, 2024, the Centers for Medicare & Medicaid Services (CMS) released final regulations that revise the Medicare Advantage (Part C), Medicare Prescription Drug Benefit (Part D), Medicare cost plan, and Programs of All-Inclusive Care for the Elderly regulations to implement changes related to Star Ratings, marketing and communications, agent/broker compensation, health equity, dual eligible special needs plans, utilization management, network adequacy, and other programmatic areas. The final regulations also codify existing sub-regulatory guidance in the Part C and Part D programs. The final regulations are effective June 3, 2024. Please refer to the regulations for applicability dates.
The news release is available here.
The final regulations are available here.
A Fact Sheet is available here.
Departments Release Final Regulations on NBPP for 2025
On April 2, 2024, the Department of Health and Human Services (HHS) and Treasury (Departments) released final regulations on the 2025 Notice of Benefit and Payment Parameters (NBPP) for 2025. The final regulations include payment parameters and provisions related to the HHS-operated risk adjustment program, as well as 2025 user fee rates for issuers offering qualified health plans through federally facilitated Exchanges (FFEs) and state-based Exchanges on the federal platform (SBE-FPs). The final regulations also include requirements related to the auto re-enrollment hierarchy; essential health benefits (EHBs); failure to file federal income taxes to reconcile advance payments of the premium tax credit; non-standardized plan option limits in the FFEs and SBE-FPs and a related exceptions process; standardized plan options in the FFEs and SBE-FPs; special enrollment periods; direct enrollment (DE) entities supporting Exchange applications and enrollments; the Insurance Affordability Program enrollment eligibility verification process; requirements for agents, brokers, web-brokers, and DE entities assisting Exchange consumers; network adequacy; public notice procedures for Section 1332 waivers; prescription drug benefits; updates to the Consumer Operated and Oriented Plan Program; and state flexibility on the effective date of coverage in the Basic Health Program. These regulations are effective 60 days after publication in the Federal Register (date unknown at time of publication).
The news release is available here.
The final regulations are available here.
(Notice: This HHS-approved document has been submitted to the Office of the Federal Register (OFR) for publication and has not yet been placed on public display or published in the Federal Register. The document may vary slightly from the published document if minor editorial changes have been made during the OFR review process.)
A Fact Sheet is available here.
Departments Release FAQ on Prohibition on Lifetime and Annual Limits and Annual Limitation on Cost-Sharing
Also on April 2, in coordination with the release of the NBPP for 2025, the Departments of HHS, Labor, and the Treasury (Departments) released a Frequently Asked Question (FAQ) regarding Prohibition on Lifetime and Annual Limits and Annual Limitation on Cost-Sharing. The Departments provide guidance on the following question:
- Does the policy in the final 2025 NBPP, which provides that prescription drugs in excess of those covered by a state's EHB-benchmark plan are considered EHB, apply to large group market coverage and self-insured plans defining EHB for purposes of the prohibition on lifetime and annual limits under Public Health Service (PHS) Act Section 2711 and the annual limitation on cost-sharing under PHS Act Section 2707(b)?
The FAQ about Affordable Care Act Implementation Part 66, is available here.
HHS Releases White Paper on Preventing Drug Shortages
On April 2, 2024, HHS released a white paper (Policy Considerations to Prevent Drug Shortages and Mitigate Supply Chain Vulnerabilities in the United States) highlighting steps HHS has taken to prevent and mitigate drug shortages with proposed solutions for consideration.
The white paper is available here.
Retirement
EBSA Publishes Final Amendment to QPAM Exemption
On April 3, 2024, the Department of Labor’s Employee Benefits Security Administration (EBSA) published a final amendment to Class Prohibited Transaction Exemption 84-14, also known as the Qualified Professional Asset Manager Exemption (QPAM), which permits various parties related to employee benefit plans and individual retirement accounts (IRAs) to engage in transactions involving plan and IRA assets. The use of the QPAM Exemption depends on certain conditions, including a requirement for plan and IRA assets to be managed by independent QPAMs that meet specified financial standards.
The final amendment:
- Clarifies that foreign convictions are included in the scope of the exemption’s ineligibility provision.
- Expands the ineligibility provision to include additional types of serious misconduct.
- Adds a one-year transition period that focuses on mitigating potential costs and disruption to plans and IRA owners when a QPAM becomes ineligible due to a conviction or participates in other serious misconduct.
- Updates asset management and equity thresholds in the QPAM definition.
- Clarifies the requisite independence and control a QPAM must have with respect to investment decisions and transactions.
- Adds a standard recordkeeping requirement.
The final amendment is effective June 17, 2024.
The news release is available here.
The final amendment is available here.
Comment Period for SECURE 2.0 Section 319 – Effectiveness of Reporting and Disclosure Requirements Extended to May 22
On April 2, 2024, the Departments of Labor, Treasury, and the Pension Benefit Guaranty Corporation announced an extension of the comment period for the Request for Information (RFI) entitled SECURE 2.0 Section 319 – Effectiveness of Reporting and Disclosure Requirements that was published in the January 23, 2024, issue of the Federal Register. The comment period for the RFI, which had been scheduled to close on April 22, 2024, is now extended to May 22.
The RFI comment extension is available here.
Other HR/Employment
WHD Updates PWRB
On April 1, 2024, the Department of Labor’s Wage and Hour Division (WHD) updated the Prevailing Wage Resource Book (PWRB). In light of the recent publication of the final rule, Updating the Davis-Bacon and Related Acts Regulations, which took effect on October 23, 2023, WHD conducted a review of the PWRB to simplify the language, restructure the format, and provide additional guidance and examples where stakeholders regularly requested clarification.
The updated PWRB is available here.