A Sigh Of Reduction: FAQs Verify Reduction For “Good Religion” Effort To Comply With New Prescription Drug Reporting Mandate – Worker Advantages & Compensation

As summarized in our
prior publish, on November 23, 2021, the Personnel Administration
Workplace, the Inside Income Service, the Worker Advantages
Safety Administration, and the Well being and Human Companies
Division issued interim last guidelines setting forth directives
for implementing a brand new prescription drug reporting mandate beneath
the 2021 Consolidated Appropriations Act (
Public Regulation 116-260). On June 29, 2022, up to date submission directions describing the
reporting course of have been launched. The primary deadline to adjust to
the brand new guidelines was December 27, 2022. Beneath that steerage, it was
nonetheless unclear whether or not the related departments supposed to supply
common reduction for plans and issuers that made good-faith efforts
to adjust to the brand new regulation.

On December 23, 2022, the Departments of Labor, Well being and Human
Companies, and the Treasury issued FAQs addressing this query immediately.

Within the FAQs, the related departments expressly acknowledge “the
important operational challenges that plans and issuers could have
encountered in complying with these reporting necessities”
and acknowledge that “there could also be errors or different points with
the primary spherical of knowledge submissions, regardless of good religion efforts by
plans and issuers.” The FAQs affirm that for the 2020 and
2021 knowledge submissions that have been due by December 27, 2022,
enforcement actions won’t be taken with respect to any plan or
issuer that makes use of an excellent religion, affordable interpretation of the
interim last guidelines and the up to date submission directions in
making its submission.

The FAQs additionally present a submission grace interval via January 31,
2023, throughout which era plans and issuers won’t be thought-about to
be out of compliance with the brand new necessities, supplied {that a}
good religion submission of 2020 and 2021 knowledge is made on or earlier than
January 31, 2023.

Lastly, the FAQs present a number of clarifications with respect to the
reporting necessities:

    • A number of submissions by the identical reporting entity are


    • Multiple reporting entity could submit on behalf of the identical
      plan or issuer;


    • Sure aggregation restrictions are suspended for 2020 and
      2021 knowledge solely;


    • Sure group well being plans submitting restricted knowledge (i.e., solely
      the plan checklist, premium and life-years knowledge and narrative response)
      could submit by e mail quite than HIOS;


    • Reporting on vaccines is elective; and


    • Reporting entities can depart sure fields associated to
      deductibles and out of pocket most clean (however shouldn’t take away
      these columns).


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