The Washington Report
July 03, 2024
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
CMS Announces Cost Savings for 64 Prescription Drugs
On June 26, 2024, the Department of Health and Human Services, through the Centers for Medicare & Medicaid Services (CMS), announced that some Medicare enrollees will pay less for 64 drugs available through Medicare Part B, as part of the provisions of the Inflation Reduction Act. The drugs will have a lowered Part B coinsurance rate from July 1, 2024, through September 30, 2024, since prices rose faster than the rate of inflation.
The news release is available here.
The CMS Fact Sheet is available here.
Retirement
DOL Issues Report to Congress on Interpretive Bulletin 95-1
On June 24, 2024, the Department of Labor (DOL) issued its Report to Congress on Interpretive Bulletin (IB) 95–1, which provides guidance on ERISA fiduciary duties when selecting an annuity provider for the purpose of distributing benefits under a defined benefit pension plan. The purchase of an annuity in this context is often referred to as a “pension risk transfer,” or a “de-risking” transaction. Importantly, the DOL report does not make any specific recommendations regarding potential changes to IB 95–1, indicating that broader public input is needed to determine whether/how IB 95–1 might be amended. The report also indicates that IB 95–1 continues to identify relevant factors for fiduciaries to consider, and that it is desirable for guidance in this area to remain principles-based. At the same time, the DOL acknowledges that it has not concluded that changes to IB 95–1 may not be needed.
It remains to be seen whether the DOL will issue a Request for Information or take other steps to gather public input and ultimately propose specific changes to IB 95–1. Aon will continue to monitor activity in this area and provide updates on any further developments.
The DOL report is available here.
Aon Publications
HHS Finalizes ACA 1557 Health Care Nondiscrimination Rules Yet Again
The Department of Health and Human Services (HHS) has again revised nondiscrimination requirements under Section 1557 of the Affordable Care Act (ACA) following its receipt of 85,000 comments from the public. Section 1557 prohibits discrimination on the basis of race, color, national origin, sex (including on the basis of sex characteristics, pregnancy, sexual orientation, gender identity and stereotypes), age, or disability in a health program or activity, any part of which is receiving federal financial assistance. Among other things, the 2024 final rule protects LGBTQI+ patients from discrimination, expands access to health care for individuals with limited English proficiency and disabilities, and clarifies that the nondiscrimination requirements apply to health programs and activities provided through telehealth services.
The Aon bulletin is available here.