The Washington Report
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December 14, 2022
Holiday Publication Schedule
The Washington Report will be taking a holiday hiatus beginning December 28, 2022, through January 4, 2023, resuming on January 11, 2023.
Executive
President Biden Signs Respect for Marriage Act Into Law
On December 13, 2022, President Biden signed into law the Respect for Marriage Act (H.R. 8404). The House approved the legislation on December 8 and the Senate passed the measure on November 29. The law provides statutory authority for same-sex and interracial marriages. Specifically, the law repeals and replaces provisions that define, for purposes of federal law, marriage as between a man and a woman and spouse as a person of the opposite sex with provisions that recognize any marriage that is valid under state law. (The Supreme Court held that the current provisions were unconstitutional in United States v. Windsor in 2013.) The law also repeals and replaces provisions that do not require states to recognize same-sex marriages from other states with provisions that prohibit the denial of full faith and credit or any right or claim relating to out-of-state marriages on the basis of sex, race, ethnicity, or national origin. (The Supreme Court held that state laws barring same-sex marriages were unconstitutional in Obergefell v. Hodges in 2015; the Court held that state laws barring interracial marriages were unconstitutional in Loving v. Virginia in 1967.) The provisions in the law also allow the Department of Justice to bring a civil action and establish a private right of action for violations. Please refer to the legislative text for specific details.
The full text of the Respect for Marriage Act (H.R. 8404) is available here.
The White House press release is available here.
Health
HHS Releases Proposed Rule on 2024 Notice of Benefit and Payment Parameters
On December 12, 2022, the Department of Health and Human Services (HHS) released the 2024 Notice of Benefit and Payment Parameters proposed rule, in accordance with the Affordable Care Act. The rule establishes standards for issuers and Marketplaces, as well as requirements for agents, brokers, web-brokers, and assisters that help consumers with enrollment through the Exchanges. Specifically, the rule includes proposed payment parameters and provisions related to the HHS-operated risk-adjustment and risk-adjustment data validation programs, as well as proposed 2024 user fee rates for issuers offering qualified health plans (QHPs) through federally facilitated Exchanges (FFEs) and state-based Exchanges on the federal platform (SBE-FPs). The rule also proposes requirements related to updating standardized plan options and reducing plan choice overload; re-enrollment hierarchy; plan and plan variation marketing name requirements for QHPs; essential community providers and network adequacy; failure to file and reconcile; special enrollment periods; the annual household income verification; the deadline for QHP issuers to report enrollment and payment inaccuracies; requirements related to the state Exchange improper payment measurement program; and requirements for agents, brokers, and web-brokers assisting FFE and SBE-FP consumers. Comments on the proposed rule must be received 45 days after publication in the Federal Register (date unknown).
The news release is available here.
The Fact Sheet is available here.
The proposed rule is temporarily available here.
(Federal Register Notice: This HHS-approved document has been submitted to the Office of the Federal Register (OFR) for publication and has not yet been placed on public display or published in the Federal Register. The document may vary slightly from the published document if minor editorial changes have been made during the OFR review process. The document published in the Federal Register is the official HHS-approved document.)
IRS Publishes Final Regulations on Information Reporting of Health Insurance Coverage and Other Issues Under Sections 5000A, 6055, and 6056; Includes Reporting Extension
On December 12, 2022, the Internal Revenue Service (IRS) published final regulations under the Internal Revenue Code that provide an automatic extension of time for providers of minimum essential coverage (including health insurance issuers, self-insured employers, and government agencies) to furnish individual statements regarding such coverage and an alternative method for furnishing individual statements when the individual shared responsibility payment amount is zero. The final regulations also provide an automatic extension of time for “applicable large employers” (generally employers with 50 or more full-time employees, including full-time equivalent employees) to furnish statements relating to health insurance that the applicable large employers offer to their full-time employees. Additionally, the final regulations provide that “minimum essential coverage,” as that term is used in health insurance-related tax laws, does not include Medicaid coverage limited to COVID-19 testing and diagnostic services provided under the Families First Coronavirus Response Act. The final regulations affect some taxpayers who claim the premium tax credit; health insurance issuers, self-insured employers, government agencies, and other persons that provide minimum essential coverage to individuals; and applicable large employers.
The final regulations are available here.
Retirement
DOL Reports More Than 1.4B in Recoveries for Employee Benefits Plans, Participants, Beneficiaries in FY 2022
On December 12, 2022, the Department of Labor (DOL) announced that enforcement and compliance actions by its Employee Benefits Security Administration (EBSA) recovered more than $1.4 billion for retirement, health and welfare benefits plans, participants and beneficiaries in fiscal year (FY) 2022. According to the DOL, “EBSA oversees approximately 747,000 retirement plans, 2.5 million health plans, and 673,000 other welfare benefit plans, covering 152 million workers, retirees, and dependents. Pension plans alone hold an estimated $12 trillion in assets.” Coinciding with the announcement, the DOL also published a Fact Sheet that provides an overview of its FY 2022 enforcement actions from October 1, 2021, through September 30, 2022. Please refer to the news release and Fact Sheet for specific details.
The news release is available here.
The Fact Sheet is available here.
Aon Publications
Now Available: Client Alert: New ESG and Proxy Voting Guidance - Highlights and Next Steps for Plan Fiduciaries
On November 22, 2022, the Department of Labor’s Employee Benefits Security Administration issued final regulations relating to a fiduciary’s investment duties under the Employee Retirement Income Security Act of 1974, as amended (ERISA). This Aon Client Alert provides highlights of the final fiduciary investment regulations and next steps for plan fiduciaries.
The Client Alert: New ESG and Proxy Voting Guidance - Highlights and Next Steps for Plan Fiduciaries, is available here.