NCSL Releases Bipartisan Work Group Report on Prescription Drug Costs

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NCSL Releases Bipartisan Work Group Report on Prescription Drug Costs

On August 25, 2021, the National Conference of State Legislatures (NCSL) announced the release of its bipartisan working group’s report, Prescription Drug Policy: A Bipartisan Remedy. The report is intended to serve as a resource for legislators and their staffs dealing with the complex issue of how to manage and lower prescription drug prices.

The bipartisan Prescription Drug Policy Recommendations Work Group is comprised of state legislators to discuss state policy options and issues related to prescription drug access and affordability.

From those discussions, three broad recommendations developed including:

  • Determining the true cost of prescription drugs;
  • Streamlining procurement processes and create new purchasing models; and
  • Encouraging competition into the supply chain.

The report examined the recommendations and policy options based on the discussions and feedback from the legislators in the work group. Although lawmakers need to explore the range of legislative policies that may work for their states, the recommendations may help to address the efforts on various areas of the prescription drug issue.

The report is available here.

SOA Announces Request for Public Retirement System Mortality Experience Data

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SOA Announces Request for Public Retirement System Mortality Experience Data

In August 2021, the Society of Actuaries’ (SOA’s) Retirement Plans Experience Committee (RPEC) announced its request for mortality experience data for members of public pension plans. The committee is seeking data for plan years ending in 2014 or later, for as many years as possible through 2020.

The RPEC intends to use the data collected to update the SOA’s Pub-2010 Public Retirement Plans Mortality Tables that were published in 2019.

Public retirement systems interested in expressing their intent to participate in the 2014-2020 Public Pension Mortality Study should contact Patrick Nolan, SOA Experience Studies Actuary, at pnolan@soa.org or (847) 273-8860 on or before September 17, 2021. Data contributions are requested to be provided on or before November 15, 2021.

Further information is available here.

 

IRS Releases Issue Snapshots for 457(b), 403(b) and 401(a) Defined Contribution Plans

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IRS Releases Issue Snapshots for 457(b), 403(b) and 401(a) Defined Contribution Plans

In August 2021, the Internal Revenue Service (IRS) released updated Issue Snapshots that provide analysis, audit tips, indicators and other resources for a particular technical tax issue. The two recently released Snapshots include: 1) the written plan requirements of an Internal Revenue Code (IRC) Section 457(b) eligible deferred compensation plan; and 2) the application of the IRC Section 415(c) when a 403(b) plan is aggregated with a Section 401(a) defined contribution (DC) plan.

The Issue Snapshots that pertain to 457(b) and 403(b)/401(a) DC plans are available respectively here and here.

CRR Issues Brief on the Impact of Inflation on Social Security Benefits

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CRR Issues Brief on the Impact of Inflation on Social Security Benefits

On August 17, 2021, the Center for Retirement Research at Boston College (CRR) issued its brief, The Impact of Inflation on Social Security Benefits. The brief cites that the U.S. Social Security Administration is expected to announce that benefits will be increased for a cost-of-living adjustment (COLA) of about 6% beginning in January 1, 2022.

The antici­pated COLA increase for 2022 would mark the largest COLA in 40 years and highlights the impor­tance of the automatic indexing provision.

However, some of the inflation protection offered by Social Security’s COLA may be affected due to: 1) Medicare Part B premiums that may increase faster than the COLA deducted automatically from Social Security benefits; and 2) a rising portion of benefits that are subject to personal income tax. As a result, these factors may reduce the net benefit that retirees get to cover shelter, food and clothing.

According to CRR, “while the inflation adjustment in Social Security is ex­tremely valuable, the rise in Medicare premiums and the extension of taxation under the personal income tax limits the ability of beneficiaries to fully maintain their purchasing power.”

The brief is available here.

EBRI Reports on Trends in Telemedicine Usage

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EBRI Reports on Trends in Telemedicine Usage

On August 5, 2021, the Employee Benefit Research Institute (EBRI) released its report, Who, What, When, Where, and Why: Trends in Telemedicine Usage From 2016–2020. The EBRI report indicates that telemedicine usage remains higher than prior to the COVID-19 pandemic with a disproportionate number of patients likely being women, older adults and named policyholders.

According to the report, “Telemedicine visits spiked during March 2020, when states issued stay-at-home orders and health care providers suspended nearly all in-person outpatient services. While patients’ use of telemedicine for visits decreased after April 2020 from their meteoric highs, there is evidence that telemedicine visits have remained persistently higher than their prepandemic trends. Telemedicine users tended to be older and disproportionately female relative to patients who do not use telemedicine.”  

EBRI’s analysis was based on a proprietary database containing about 150,000 covered lives and 16 million encounters to examine telemedicine trends in usage, conditions patients seek to address, and whether there were related factors for a particular visit being conducted via telemedicine.

The summary report is available here.