This Week on the Hill
The House and Senate are in recess until September 5.
CMS Extends Rate Filing Deadline for Health Plans
On Thursday the Centers for Medicare and Medicaid Services (CMS) issued a memo on risk adjustment methodology and rate filing deadlines for 2018 Affordable Care Act plans. First, the memo states “at this time, there have been no changes regarding the Department of Health and Human Services’ (HHS) ability to make cost-sharing reduction payments to issuers.” Further, CMS intends to propose a modification to the HHS risk adjustment methodology in future rulemaking for states in which all marketplace issuers increase silver plan rates to account for cost-sharing reduction payments, in answer to actions some states are taking for 2018. Also, the memo provides updated filing deadlines for single risk pool coverage: issuers may now submit 2018 rate filings by September 5 (extended from August 16) with final determinations due October 6 and open enrollment beginning November 1.
South Dakota Supreme Court to Hear Online Sales Tax Case on August 29
The South Dakota Supreme Court is scheduled to hear oral arguments August 29 in the state’s lawsuit against three Internet retailers to collect sales taxes. The case is designed to challenge the 25-year old U.S. Supreme Court opinion that restricts the ability of states to tax out-of-state e-retailers (Quill Corp. vs. North Dakota). South Dakota passed a law in 2016 requiring Internet companies that sell $100,000 or more of merchandise in the state, or that make 200 or more transactions, to remit sales taxes to the state. According to news reports, the law was passed as a challenge to the Quill decision and the state is now asking the court to overturn Quill. The South Dakota Sixth Judicial Circuit Court issued a summary judgement on March 6, holding that the law was unconstitutional under the Quill decision; the state then appealed directly to the state’s Supreme Court. From that decision, the state can seek review by the U.S. Supreme Court. The state’s brief can be found here.
DOJ Launches Opioid Fraud and Abuse Unit
Earlier this month Attorney General Jeff Sessions announced the creation of the Opioid Fraud and Abuse Detection Unit at the Department of Justice. This is a pilot program that will utilize data to identify and prosecute individuals that are contributing to the prescription opioid epidemic. As part of the program, DOJ will fund twelve experienced Assistant U.S. Attorneys for a three-year term to focus solely on investigating and prosecuting health care fraud related to prescription opioids, including pill mill schemes and pharmacies that unlawfully divert or dispense opioids. Prosecutors will work with the Federal Bureau of Investigation, Drug Enforcement Administration, Department of Health and Human Services, in addition to state and local partners, to target and prosecute offenders. Districts in the following states were selected to participate: Florida, Michigan, Alabama, Tennessee, Nevada, Kentucky, Maryland, Pennsylvania, Ohio, California, North Carolina and West Virginia.
SAMHSA Releases State Behavioral Health Barometers
On Thursday, the Substance Abuse and Mental Health Services Administration (SAMHSA) released the fourth edition of its Behavioral Health Barometer state reports that provide an overview of behavioral health in each state and the District of Columbia. Each state report includes data about key issues such as the prevalence of substance abuse, serious thoughts of suicide, serious mental illness, and their comparisons with national annual averages. The reports also show trends in several mental health issues and related treatment to assist policymakers and public health providers in targeting programs and interventions. Links to the full report, as well as the individual state reports, can be found here.
HUD Issues Report on Affordable Housing
Last Wednesday the Department of Housing and Urban Development (HUD) released the latest version of a report to Congress that provides national data and analysis of the critical problems facing very low-income renting families. The Worst Case Housing Needs 2017 report found that the number of very poor unsubsidized families struggling to pay their monthly rent and who may also be living in substandard housing increased between 2013 and 2015. Worst Case Housing Needs are defined as renters with very low incomes (below half the median in their area) who do not receive government housing assistance and who either paid more than half their monthly incomes for rent, lived in severely substandard conditions, or both. The number of these households increased between 2013 and 2015 to 8.3 million, the second highest number of households recorded; for the poorest renters, growth in rental costs outpaced income gains. And for the first time, HUD is reporting estimates of Worst Case Housing Needs for select metropolitan areas across the country.
Interior Rescinds Rule on Energy Extraction on Federal Land
Last week the Department of the Interior announced the repeal of the Consolidated Federal Oil and Gas and Federal and Indian Coal Valuation Reform Rule (Valuation Rule), which had been finalized by the Obama administration. Simultaneously, the department is reinstating the valuation regulations governing the valuation of federal oil, federal gas, and federal and Indian coal that were in effect before January 1, 2017 (when the rule took effect). The rule had made changes to existing regulations governing royalty valuation and reporting practices for oil, gas and coal, intending to offer greater clarity and consistency in product valuation, to ensure that Indian mineral lessors received the maximum revenue from their coal resources, and to decrease industry’s cost of compliance. The department determined the rule contained several defects and received several comments on the rule, leading to the decision to repeal the regulation. However, they also determined that state and local governments impacted by the repeal will incur a decrease in royalty receipts (noted on page 18). This repeal is effective on September 6.
EPA Issues Interim Coal Ash Guidance
On Thursday the Environmental Protection Agency (EPA) released an interim final guidance on state coal combustion residual permitting programs, intended to help states develop and submit permit programs for the safe management of the residuals, commonly known as coal ash. EPA published a final rule in April 2015 regulating the management and disposal of coal ash as nonhazardous waste under the Resource Conservation and Recovery Act, which did not provide for regulation through state permit programs; this was remedied by the Water Infrastructure Improvements for the Nation (WIIN) Act in 2016. The WIIN Act gives states the opportunity to act as the primary regulatory and enforcement authority over coal ash through the establishment of EPA-approved state permit programs. The interim final guidance addresses questions received about the provisions of the WIIN Act, establishes a framework to guide EPA’s approval process and provides checklists to aid states in permit program development. EPA will accept public comments on the interim final guidance for 30 days following publication in the Federal Register. Additional information on the agency’s coal ash program can be found here.
FDA to Target E-Cigarette Use by Youth
Earlier this month the U.S. Food and Drug Administration (FDA) announced it would pursue a strategic, new public health education campaign aimed at discouraging the use of e-cigarettes and other electronic nicotine delivery systems (ENDS) by kids. The agency will expand its “The Real Cost” public education campaign to include these products in its messaging to teens this fall, while developing a full-scale campaign to launch in 2018. According to the announcement, this will be the first time the FDA will be utilizing public health education to specifically target youth use of e-cigarettes or other ENDS. Per the agency, more than 2 million middle and high school students were current users of these products in 2016.
Recently Released Reports
The Promise of the State-Federal Partnership on Workforce and Job Training, National Governors Association
Section 1115 Medicaid Expansion Waivers: A Look at Key Themes and State Specific Waiver Provisions, Kaiser Family Foundation
State Education Governance Structures: 2017 Update, Education Commission of the States
Child Care Subsidies under the CCDF Program: An Overview of Policy Differences Across States and Territories as of October 1, 2015, Urban Institute
Streamlining Permitting: An Inventory of State Environmental Agency Online Tools and Resources, Environmental Council of the States
Economic News
Consumer Price Index and Real Hourly Earnings Rose in July
The U.S. Bureau of Labor Statistics released new data on the Consumer Price Index for All Urban Consumers (CPI-U) for July 2017, showing the CPI-U increased 0.1 percent on a seasonally adjusted basis. Over the last twelve months, the all items index rose 1.7 percent. The index for all items less food and energy rose 0.1 percent in July, while the energy index declined slightly, with its major component indexes mixed. The index for all items less food and energy rose 1.7 percent for the 12 months ending July, the same increase as for the 12 months ending May and June. Meanwhile, real average hourly earnings for all employees increased 0.2 percent from June to July, seasonally adjusted. This result stems from a 0.3 percent increase in average hourly earnings being partially offset by a 0.1 percent increase in the CPI-U.