The Washington Report
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November 11, 2020
Note to subscribers: Due to the current environment, information is changing at a rapid rate. While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change or be revised after our publication deadline. Stay healthy and safe! ~The Washington Report team
Executive/Legislative
Biden Wins Presidential Election
Joe Biden was named the winner of the 2020 presidential election this past weekend. The president-elect is moving forward with his transition plans, with the first priority focusing on the nation’s pandemic response. At the time of this publication deadline, President Trump had not conceded the election and filed several lawsuits over the results.
Congress Begins Lame-Duck Session
The Senate returns to the Hill this week as Congress enters its “lame-duck” session, which could potentially last through December. The chambers are expected to consider a COVID/economic relief package and government funding as the year winds down.
(Note: The congressional schedule is always subject to change.)
Health
CMS Announces 2021 Medicare Parts A & B Premiums and Deductibles
On November 6, 2020, the Centers for Medicare and Medicaid Services (CMS) released the 2021 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs. For 2021, the Medicare Part B monthly premiums and the annual deductible are higher than the 2020 amounts. The standard monthly premium for Medicare Part B enrollees will be $148.50 for 2021, an increase of $3.90 from $144.60 in 2020. The annual deductible for all Medicare Part B beneficiaries is $203 in 2021, an increase of $5 from the annual deductible of $198 in 2020.
The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital will be $1,484 in 2021, an increase of $76 from $1,408 in 2020. The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2021, beneficiaries must pay a coinsurance amount of $371 per day for the 61st through 90th day of a hospitalization ($352 in 2020) in a benefit period and $742 per day for lifetime reserve days ($704 in 2020). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $185.50 in 2021 ($176.00 in 2020).
The CMS Notice for 2021 Inpatient Hospital Deductible and Hospital and Extended Care Services Coinsurance Amounts is temporarily available here. (The rates will be officially published in the November 12, 2020, Federal Register.)
The CMS Notice for 2021 Medicare Part B Monthly Actuarial Rates, Premium Rates, and Annual Deductible is temporarily available here. (The rates will be officially published in the November 12, 2020, Federal Register.)
The CMS Fact Sheet is available here.
The CMS news release is available here.
Retirement
IRS Releases Final Regulations on Updated Life Expectancy and Distribution Period Tables Used for Purposes of Determining Minimum Required Distributions
On November 6, 2020, the Treasury and the Internal Revenue Service (IRS) released final regulations providing guidance relating to the life expectancy and distribution period tables that are used to calculate required minimum distributions from qualified retirement plans, individual retirement accounts (IRAs) and annuities, and certain other tax-favored employer-provided retirement arrangements. These regulations affect participants, beneficiaries, and plan administrators of these qualified retirement plans and other tax-favored employer-provided retirement arrangements, as well as owners, beneficiaries, trustees, and custodians of IRAs and annuities. The final regulations become effective on November 12, 2020.
The final regulations are available here.
DOL Announces Final Rule on Financial Factors in Selecting Plan Investments
On October 30, 2020, the Department of Labor (DOL) announced a final rule that updates and clarifies the DOL’s investment duties regulation under Title I of ERISA. The amendments require plan fiduciaries to select investments and investment courses of action based solely on financial considerations relevant to the risk-adjusted economic value of a particular investment or investment course of action. The final rule also intends to provide clear regulatory guideposts for fiduciaries of private-sector retirement and other employee benefit plans in light of recent trends involving environmental, social, and corporate governance investing. According to the DOL, the amendments require plan fiduciaries to “select investments and investment courses of action based on pecuniary factors—i.e., any factor that the responsible fiduciary prudently determines is expected to have a material effect on risk and/or return of an investment based on appropriate investment horizons consistent with the plan’s investment objectives and funding policy.” The final rule will be effective 60 days after date of publication in the Federal Register (date unknown at this time).
The news release is available here.
The final rule is temporarily available here.
(Federal Register Disclaimer: This final rule was submitted to the Office of the Federal Register (OFR) for publication and will be placed on public inspection at the OFR and published in the Federal Register. This version of the final rule may vary slightly from the published version if the OFR makes minor technical or formatting changes during the review process. Only the version published in the Federal Register is the official final rule.)
Other HR/Employment
DOL Announces Final Rule Codifying Procedures to Resolve Potential Employment Discrimination
On November 5, 2020, the Department of Labor’s (DOL’s) Office of Federal Contract Compliance Programs (OFCCP) announced a final rule titled “Nondiscrimination Obligations of Federal Contractors and Subcontractors: Procedures to Resolve Potential Employment Discrimination.” The final rule codifies two formal notices that OFCCP uses when it finds potential violations of Executive Order 11246 or the OFCCP regulations implementing the Executive Order: the Predetermination Notice and the Notice of Violation. These pre-enforcement notices provide federal contractors with an explanation of the agency’s preliminary findings of discrimination, and give contractors an opportunity to respond, allowing for a greater shared understanding of the case and providing opportunities to conciliate. The rule also recognizes the availability of voluntary conciliation agreements early in the resolution process. The final rule will become effective 30 days after publication in the Federal Register (date unknown).
The news release is available here.
The final rule is temporarily available here.
(Federal Register Disclaimer: This final rule has been submitted to the Office of the Federal Register (OFR) for publication and is currently pending placement on public inspection at the OFR and publication in the Federal Register. This version of the final rule may vary slightly from the published document if minor technical or formatting changes are made during the OFR review process. Only the version published in the Federal Register is the official final rule.)
Executive Order 11246 is available here.