Human Resources

The Washington Report



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August 30, 2023

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.

Legislative

 

Congress Adjourned for August Recess
Congress has adjourned for its August recess. The House and Senate are scheduled to reconvene after the Labor Day holiday.

Health

 

CMS Selects First 10 Drugs for Medicare Drug Price Negotiation Program
On August 29, 2023, the Department of Health and Human Services’ Centers for Medicare & Medicaid Services (CMS), announced the first 10 drugs covered under Medicare Part D selected for negotiation (Medicare Drug Price Negotiation Program). The negotiations with participating drug companies will occur in 2023 and 2024, and any negotiated prices will become effective beginning in 2026. The selected drug list for the first round of negotiation is:

  • Eliquis
  • Jardiance
  • Xarelto
  • Januvia
  • Farxiga
  • Entresto
  • Enbrel
  • Imbruvica
  • Stelara
  • Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill

The news release is available here.

A Fact Sheet on the Medicare Drug Price Negotiation Program: Selected Drugs for Initial Price Applicability Year 2026, is available here.

A Fact Sheet from the Office of the Assistant Secretary for Planning and Evaluation is available here.

CMS Releases Draft Guidance Allowing Individuals to Pay Medicare Part D Costs in Monthly Payments
As part of the Inflation Reduction Act, individuals with Medicare prescription drug coverage (Part D) will have the option to pay out-of-pocket costs in monthly payments beginning in 2025. On August 21, 2023, CMS released draft guidance that outlines the requirements and procedures for certain aspects of the Medicare Prescription Payment Plan. The draft guidance focuses on assisting Part D plan sponsors and pharmacies prepare for the new program. The draft guidance also provides information on topics such as identifying Part D enrollees likely to benefit from the program, the opt-in process for Part D enrollees, program participant protections, and the data collection needed to evaluate the program.

CMS is issuing the guidance in two parts and the additional draft guidance will be released for comment in early 2024. The second part of the guidance will focus on Part D enrollee outreach and education, plan bid information, and monitoring and compliance.

The comment period for the first draft of guidance is open for 30 days, and comments received by September 20, 2023, will be considered during development of the final guidance. CMS anticipates issuing final part one guidance in early 2024.

The news release is available here.

A Fact Sheet on the Medicare Prescription Payment Plan is available here.

An implementation timeline for the Medicare Prescription Payment Plan is available here.

The draft guidance is available here.

Other HR/Employment

 

EEOC Approves New Strategic Plan Through FY 2026
On August 22, 2023, the Equal Employment Opportunity Commission (EEOC) announced it has approved its Strategic Plan for Fiscal Years (FYs) 2022–2026. The new Strategic Plan outlines the EEOC’s strategic goals and objectives to: “combat and prevent employment discrimination through the strategic application of the EEOC’s law enforcement authorities; prevent employment discrimination and advance equal employment opportunities through education and outreach; and strive for organizational excellence through its people, practices, and technology.” Highlights include:

  • Increased focus on systemic discrimination. The Plan emphasizes expanding the EEOC’s capacity to eliminate systemic barriers to equal opportunity in the workplace, including training staff to identify and investigate systemic cases and devoting additional resources to systemic enforcement.
  • Improved monitoring of conciliation agreements to ensure workplaces are free from discrimination after the EEOC makes a finding of discrimination.
  • Enhanced intake services to potential charging parties, respondents, and representatives.
  • Leverage technology and innovative outreach strategies to expand the agency’s reach to diverse populations; vulnerable communities; and small, new, and disadvantaged or underserved employers.
  • Promote practices that employers can adopt to prevent discrimination in the workplace.

The EEOC also publishes a Strategic Enforcement Plan (SEP), which is a separate document that establishes the EEOC’s substantive area priorities for its work to advance equal employment opportunity and prevent and remedy discrimination in the workplace.

The news release is available here.

The EEOC Strategic Plan 2022–2026 is available here.

The SEP is available here.

Aon Publications

 

IRS Announces Lower 2024 Affordability Percentage for ACA Employer Mandate
On August 23, 2023, the Internal Revenue Service (IRS) announced that the required contribution percentage used by employers for complying with the Affordable Care Act’s (ACA’s) employer mandate will significantly decrease for plan years beginning in calendar year 2024.

The Aon bulletin is available here.

 

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