The Washington Report

November 22, 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.

The Washington Report will not be published on November 29, 2023. Look for your next Aon Washington Report on Wednesday, December 6, 2023. Happy Thanksgiving!

Executive/Legislative

Stopgap Funding Bill Signed Into Law
On November 16, 2023, President Biden signed a stopgap funding bill (H.R. 6363) into law. The continuing resolution funds some federal agencies until January 19, 2024, and the rest until February 2, 2024. The Senate passed the legislation on November 15 and the House approved the bill on November 14.

H.R. 6363 is available here.

Health

HHS Releases Proposed Rule on 2025 Notice of Benefit and Payment Parameters
On November 16, 2023, the Department of Health and Human Services (HHS) released the 2025 Notice of Benefit and Payment Parameters proposed rule. This proposed rule includes 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 Exchanges. This proposed rule also includes proposed requirements related to the auto re-enrollment hierarchy; essential health benefits; failure to file and reconcile; non-standardized plan option limits and an exceptions process; standardized plan options; special enrollment periods; direct enrollment entities; Insurance Affordability Program enrollment eligibility verification process; requirements for agents, brokers, web-brokers, and direct enrollment 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; state flexibility on the financial methodology used for Medicaid eligibility determinations for non-modified adjusted gross income populations; and state flexibility on the effective date of coverage in the Basic Health Program.

Comments on the proposed rule must be received by January 8, 2024.

The Fact Sheet is available here.

The proposed rule is available here.

Retirement

PBGC Releases FY 2023 Annual Report
On November 16, 2023, the Pension Benefit Guaranty Corporation (PBGC) released its Fiscal Year (FY) 2023 Annual Report. “This Annual Report marks three consecutive years of positive net financial positions for both of the agency’s insurance programs,” PBGC Director Gordon Hartogensis stated. According to the PBGC, “The Multiemployer Program had assets of $4 billion and liabilities of $2.5 billion, as of September 30, 2023. The net financial position of the Multiemployer Program improved in FY 2023, to a positive net position of $1.5 billion, compared with the program’s positive net position of $1.1 billion the previous year.” The PBGC’s Single-Employer Program “had $130.9 billion in assets and $86.3 billion in liabilities, as of September 30, 2023, resulting in a positive net position of $44.6 billion at the end of FY 2023, up from $36.6 billion a year earlier.”

The news release is available here.

The FY 2023 Annual Report is available here.

EBSA to Hold Online Hearing on Proposed Fiduciary Rule in December
On November 15, 2023, the Employee Benefits Security Administration (EBSA) of the Department of Labor announced that it will hold an online hearing on December 12 and December 13, 2023, on the proposed fiduciary rule that was published in the Federal Register on November 3. EBSA said that it may continue the hearing on December 14, if necessary. Requests to testify at the hearing must be submitted on or before November 29. The comment period on the proposed rule will close on January 2, 2024.

The news release is available here.

The notice of hearing is available here.

Information on the proposed fiduciary rule is available here.

Aon Publications

2024 Limits for Benefit Plans
Each year, the U.S. government adjusts the limits for retirement plans, Social Security, Medicare, and other benefit programs to reflect price and wage inflation and changes in the law. As a result, employee benefit plans must be adapted annually to accommodate the new limits. All of the numbers in this report are official unless otherwise indicated.