The Washington Report
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May 4, 2022
Note to Subscribers
While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.
Health
IRS Announces 2023 HSA Limits; Excepted Benefit HRA Maximum Amount
On April 29, 2022, the Internal Revenue Service (IRS) announced in Revenue Procedure 2022-24 the 2023 inflation-adjusted amounts for Health Savings Accounts (HSAs). For calendar year 2023, the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $3,850. The annual limitation on deductions for an individual with family coverage under a high-deductible health plan is $7,750.
For calendar year 2023, a “high-deductible health plan” is a health plan with an annual deductible that is not less than $1,500 for self-only coverage or $3,000 for family coverage. The annual out-of-pocket expenses (deductibles, copayments, and other amounts, but not premiums) cannot exceed $7,500 for self-only coverage or $15,000 for family coverage.
The IRS also announced the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements (HRAs) provided under Section 54.9831-1(c)(3)(viii) of the Pension Excise Tax Regulations. For plan years beginning in 2023, the maximum amount that may be made newly available for the plan year for an excepted benefit HRA is $1,950.
For additional information, see the Aon bulletin titled IRS Issues 2023 HSA Limits in the Publications section of the newsletter.
Revenue Procedure 2022-24 is available here.
CMS Releases Final Regulations on Medicare Program: Contract Year 2023 Policy and Technical Changes to the Medicare Advantage (Part C) and Medicare Prescription Drug Benefit (Part D) Programs
On April 29, 2022, the Department of Health and Humans Services’ Centers for Medicare & Medicaid Services (CMS) released final regulations that revise the Medicare Advantage (Part C) program and Medicare Prescription Drug Benefit (Part D) program regulations to implement changes related to marketing and communications, past performance, Star Ratings, network adequacy, medical loss ratio reporting, special requirements during disasters or public emergencies, and pharmacy price concessions. The final regulations revise regulations related to dual eligible special needs plans, other special needs plans, and cost contract plans. The regulations also finalize certain 2021 and 2022 Star Ratings provisions that were included in two interim final rules with comment period that CMS issued on April 6, 2020, and September 2, 2020; other policies from those interim final rules will be addressed in other rulemakings. The final regulations become effective on June 28, 2022, except for amendatory instructions 27 and 36 (regarding the definition of “negotiated price” at Sections 423.100 and 423.2305), which are effective January 1, 2024. Please refer to the final regulations and associated resources for specific details.
The final regulations are available here.
The news release is available here.
A Fact Sheet is available here.
HHS Releases Final Regulations on Patient Protection and Affordable Care Act; Notice of Benefit and Payment Parameters for 2023
On April 28, 2022, the Department of Health and Human Services (HHS) released final regulations on the payment parameters and provisions related to the risk adjustment and risk adjustment data validation programs, as well as 2023 user fee rates for issuers offering qualified health plans (QHPs) through federally facilitated Exchanges and state-based Exchanges on the federal platform. The final regulations also include requirements related to guaranteed availability; the offering of QHP standardized plan options through Exchanges on the federal platform; requirements for agents, brokers, and web brokers; verification standards related to employer-sponsored coverage; Exchange eligibility determinations during a benefit year; special enrollment period verification; cost-sharing requirements; Essential Health Benefits; Actuarial Value; QHP issuer quality improvement strategies; accounting for quality improvement activity expenses and provider incentives for medical loss ratio reporting and rebate calculation purposes; and re-enrollment. These final regulations also respond to comments on how HHS can advance health equity through QHP certification standards and otherwise in the individual and group health insurance markets, and how HHS might address plan choice overload in the Exchanges. The regulations become effective July 1, 2022.
The final regulations are available here.
The news release is available here.
A Fact Sheet is available here.
Departments Release New Mental Health and Substance Use Disorder, MHPAEA Resources
On April 27, 2022, the Departments of Labor and HHS (Departments) announced the release of new resources that provide information about coverage rights under the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA). The MHPAEA requires most health plans or health insurers that offer coverage for mental health conditions or substance use disorders to make these benefits comparable to those offered for medical and surgical benefits. This means that deductibles, copays, out-of-pocket maximums, and treatment limitations for mental health or substance use disorders must not be more restrictive than corresponding requirements or parameters offered for medical and surgical benefits. The Substance Abuse and Mental Health Services Administration (SAMHSA) is providing these latest resources to “help inform Americans of their insurance benefits under law and to help state insurance regulators and behavioral health staff better understand parity laws.” The following resources have been posted on SAMHSA’s website:
- Know Your Rights: Parity for Mental Health and Substance Use Disorder Benefits, an updated trifold pamphlet explaining mental health parity, detailing what it means to the consumer, and listing the protections the parity law provides.
- Understanding Parity: A Guide to Resources for Families and Caregivers, which provides an overview of parity geared toward parents, family members or caregivers with information and tools to help them obtain behavioral health services for children or family members in their care.
- The Essential Aspects of Parity: A Training Tool for Policymakers, which provides state regulators and behavioral health staff an overview of mental health and substance use disorder parity and how to implement and comply with the federal parity law regarding employee-sponsored health plans and group and individual health insurance.
The news release is available here.
The Know Your Rights: Parity for Mental Health and Substance Use Disorder Benefits, resource page is available here.
The Understanding Parity: A Guide to Resources for Families and Caregivers, resource page is available here.
The The Essential Aspects of Parity: A Training Tool for Policymakers, resource page is available here.
Other HR/Employment
Treasury, IRS Request Comments for the 2022–2023 Priority Guidance Plan
On April 27, 2022, the Treasury Department and Internal Revenue Service (IRS) released Notice 2022-21, which provides the recommendation solicitation notice for the 2022–2023 Priority Guidance Plan. The Notice invites the public to submit recommendations for items to be included in the upcoming guidance document. The Treasury and IRS use the Priority Guidance Plan each year to identify and prioritize the tax issues that should be addressed through regulations, Revenue Rulings, Revenue Procedures, Notices, and other published administrative guidance. The 2022–2023 Priority Guidance Plan will identify guidance projects that the Treasury Department and the IRS intend to actively work on as priorities during the period from July 1, 2022, through June 30, 2023. Recommendations for guidance must be submitted by June 3, 2022, for possible inclusion in the original 2022–2023 Priority Guidance Plan.
IRS Notice 2022-21 is available here.
Aon Publications
IRS Issues 2023 HSA Limits
On April 29, 2022, the Internal Revenue Service (IRS) issued Revenue Procedure 2022-24, inflation-adjusted limits for contributions to a health savings account (HSA) for the 2023 calendar year. The IRS also issued updated minimum deductible amounts and maximum out-of-pocket limits. This Aon bulletin contains a chart providing the limits for calendar years 2021 through 2023.
The bulletin is available here.
Employer Group Health Plans and Insurers Face July 1 Date for Implementing Phase 1 of Transparency in Coverage Rule
The federal government’s years-long effort to foster transparency in employer group health plans begins in less than two months, with group health plans and health insurers facing a July 1, 2022, compliance date to publish certain price information in machine-readable files on a public website.
This Aon bulletin discusses:
- Background to the Transparency in Coverage Rules
- Phase 1—What Are Machine-Readable Files?
- Plans That Must Publish Machine-Readable Files Under Phase 1
- The Rules for Publishing Machine-Readable Files
The bulletin is available here.