Month: January 2022

Supreme Court Blocks OSHA Vaccine-or-Test Mandate for Employers

The Supreme Court on Thursday temporarily blocked the Biden administration’s vaccine-or-test mandate for large employers, but allowed a vaccine-only mandate for health providers at federally funded facilities.

The OSHA regulation would have required companies with at least 100 workers to mandate all employees be vaccinated or provide weekly negative coronavirus test results and wear face coverings to work on-site.

While lower courts were split, the conservative Supreme Court majority ruled the employer vaccine-or-test mandate was an overreach. The justices said the challengers, a coalition of businesses and 27 Republican-led states, were likely to succeed on the merits.

“The Secretary has ordered 84 million Americans to either obtain a COVID–19 vaccine or undergo weekly medical testing at their own expense,” the justices wrote. “It is instead a significant encroachment into the Lives—and health—of a vast number of employees. … There can be little doubt that OSHA’s mandate qualifies as an exercise of such authority.”

The majority said OSHA’s standards are meant to regulate workplaces only, and COVID-19 is a public health issue, not just a workplace one.

“Although COVID-19 is a risk that occurs in many workplaces, it is not an occupational hazard in most. COVID–19 can and does spread at home, in schools, during sporting events, and everywhere else that people gather,” the justices wrote.

 

2022 Federal Individual Income Tax Filing Season Begins January 24, 2022

The Internal Revenue Service announced that the nation’s tax season will start on Monday, January 24, 2022, when the tax agency will begin accepting and processing 2021 tax year returns.

The filing deadline to submit 2021 tax returns or an extension to file and pay tax owed is Monday, April 18, 2022, for most taxpayers. Taxpayers requesting an extension will have until Monday, October 17, 2022, to file.

The IRS encourages people to use online resources before calling. Last filing season, as a result of COVID-era tax changes and broader pandemic challenges, the IRS phone systems received more than 145 million calls from January 1 – May 17, more than four times more calls than in an average year. In addition to IRS.gov, the IRS has a variety of other free options available to help taxpayers, ranging from free assistance at Volunteer Income Tax Assistance and Tax Counseling for the Elderly locations across the country to the availability of the IRS Free File program.

Overall, the IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically if they choose direct deposit and there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically. To avoid delays in processing, people should avoid filing paper returns wherever possible.

By law, the IRS cannot issue a refund involving the Earned Income Tax Credit or Additional Child Tax Credit before mid-February, though eligible people may file their returns beginning on January 24. The law provides this additional time to help the IRS stop fraudulent refunds from being issued.

 

U.S. Inflation Rate Hits Near 40-Year High

Prices in the U.S. are rising at their fastest rate in almost 40 years, with inflation up 7% year-on-year in December. Strong demand and scarce supply for key items such as cars are driving the increases, which are putting pressure on policymakers to act.

The U.S. central bank is expected to raise interest rates this year.

December’s increase marked the third month in a row that the U.S. annual inflation rate has hovered above 6% – well north of policymakers’ 2% target. The last time the pace of inflation exceeded that level was 1982.

Wednesday’s report from the Labor Department showed signs that some of the pressures may be easing. The cost of energy dropped 0.4% from November to December – its first decline since April. But over 12 months energy costs are up by nearly 30% and have returned to their upward trend in recent days.

Biden Administration Requires Insurance Companies and Group Health Plans to Cover the Cost of At-Home COVID-19 Tests

Beginning January 15, 2022, individuals with private health insurance coverage or covered by a group health plan who purchase an over-the-counter COVID-19 diagnostic test authorized, cleared, or approved by the U.S. Food and Drug Administration (FDA) will be able to have those test costs covered by their plan or insurance.  There is no limit on the number of tests, including at-home tests, that are covered if ordered or administered by a health care provider following an individualized clinical assessment, including for those who may need them due to underlying medical conditions.

As part of the requirement, the Biden Administration is incentivizing insurers and group health plans to set up programs that allow people to get the over-the-counter tests directly through preferred pharmacies, retailers or other entities with no out-of-pocket costs.  Insurers and plans would cover the costs upfront, eliminating the need for consumers to submit a claim for reimbursement. When plans and insurers make tests available for upfront coverage through preferred pharmacies or retailers, they are still required to reimburse tests purchased by consumers outside of that network, at a rate of up to $12 per individual test (or the cost of the test, if less than $12). For example, if an individual has a plan that offers direct coverage through their preferred pharmacy but that individual instead purchases tests through an online retailer, the plan is still required to reimburse them up to $12 per individual test. Consumers can find out more information from their plan about how their plan or insurer will cover over-the-counter tests.

State Medicaid and Children’s Health Insurance Program (CHIP) programs are currently required to cover FDA-authorized at-home COVID-19 tests without cost-sharing. In 2021, the Biden-Harris Administration issued guidance explaining that State Medicaid and Children’s Health Insurance Program (CHIP) programs must cover all types of FDA-authorized COVID-19 tests without cost sharing under CMS’s interpretation of the American Rescue Plan Act of 2019 (ARP). Medicare pays for COVID-19 diagnostic tests performed by a laboratory, such as PCR and antigen tests, with no beneficiary cost sharing when the test is ordered by a physician, non-physician practitioner, pharmacist, or other authorized health care professional. People enrolled in a Medicare Advantage plan should check with their plan to see if their plan offers coverage and payment for at-home over-the-counter COVID-19 tests.

 

Governor Thompson Resigning as UW System Interim President in March

Interim UW System President Tommy Thompson will resign his post in March, writing to Regents President Edmund Manydeeds on Friday that doing so will allow the university to put its full attention on his successor.

Thompson, the longest serving governor in Wisconsin history, was brought in to lead the system on an interim basis on July 1, 2020, after a failed search to find a permanent replacement for the retiring Ray Cross.

In his letter, Thompson wrote he agreed to accept knowing two things: “that I was needed, and that it would be temporary.”

The three-page letter opens with the line, “I love Wisconsin.” It then ticks off a series of accomplishments, including leading the system during the COVID-19 pandemic and working with the Legislature and guv to restore authority to the Board of Regents to set tuition after a decade-long freeze for in-state undergraduates.

“While I firmly believe that the pursuit of excellence never ends, I am satisfied that I have accomplished what has been asked of me and what the people of this state have sought,” Thompson wrote.

Thompson noted the regents will soon identify a candidate to become the full-time president, writing “the onboarding process will require the full attention of System staff, chancellors, faculty, and the many remarkable people that carry out the business of the System every day.”

The committee overseeing the search for a new president was to meet in closed session today to select finalists for the job. The finalists won’t be announced until a later date.

“Until the end, I will work to accomplish all that is needed before allowing staff the ability to prepare for the transition,” Thompson wrote.

 

Federal Vax Mandate on Trial Friday

The U.S. Supreme Court will weigh in on the federal vaccine mandate Friday, which could affect employers nationwide as well as tens of millions of U.S. workers.

Today, the Justices will hear arguments on the constitutionality of President Biden’s emergency executive order forcing private businesses with 100 or more employees to submit to mandatory vaccinations or face weekly testing.

The Occupational Safety and Health Administration (OSHA) first announced how it would enforce the mandate in November, which was immediately challenged in the court. The 5th Circuit Court of Appeals froze the mandate. The 6th Circuit Court of Appeals lifted the stay in December.

If the court finds that the mandate should be stayed, clients opposed would find protection. That decision would send the case back to the 6th Circuit Court of Appeals which is overseeing all consolidated legal challenges to vaccine mandates.

If the mandate is reinstated, businesses not following the rules could face fines of more than $13,000 per violation. The ADF senior counsel said Feb. 9 will be the deadline for full compliance with testing requirements.

The high court will also weigh in on the Centers for Medicare and Medicaid services case, demanding roughly 17 million healthcare workers also get vaccinated or submit to testing.

Elimination of “White Bagging” to Result in Higher Health Care Costs for Employers, Employees

Wisconsin Manufacturers & Commerce (WMC) – the combined state chamber and manufacturers’ association – joined a coalition of fifty-three business groups, including WIB, and employers on Tuesday opposing AB 718/SB 753. The legislation would eliminate what is commonly known as “white-bagging,” a process that delivers clinically administered drugs directly to providers. With ever-rising health care costs, this is a necessary tool to address significant hospital mark-ups and keep medications reasonably affordable.

recent study prepared for PhRMA found that on average hospitals charge 479% of their cost for drugs nationwide. Eighty-three percent of hospitals charge patients and insurers more than double their acquisition cost for medicine, marking-up the medicines 200% or more.

“The trend of increasing hospital mark-ups on medication is unsustainable, especially when health care prices in Wisconsin are already some of the highest in the nation,” said WMC Director of Workforce, Education & Employment Policy Rachel Ver Velde. “This legislation would take away an important tool that employers use to maintain a high quality of care and reduce the costs for their employees. We urge policymakers to oppose this bill.”

In a letter to legislators, WMC and the coalition explain that employers and employees are bearing the brunt of significantly inflated prices for clinically administered drugs. “This translates into lower wages, fewer jobs and businesses looking elsewhere to grow their companies. Wisconsin businesses are committed to providing quality healthcare, but ninety percent of plan sponsors said high drug prices could jeopardize the affordability of employer-provided health care coverage for employees and their families,” the letter reads.

Read the full letter here.

Great Lakes Ports See Shipping Rebound in 2021

Great Lakes ports are reporting a rebound in cargo shipments this year after the region’s largest port witnessed historic lows during the coronavirus pandemic in 2020.

The Port of Duluth-Superior bounced back this year after cargo shipments dropped to their lowest level in 2020 since 1938 with a total of 25.8 million tons moving through the lakes’ largest port. As of the end of November, the port had handled around 29 million tons of cargo, marking a 30 percent increase from the same time last year.

The Port of Green Bay reported that cargo shipments were up 9 percent from the same time last year through November, handling a total of roughly 1.8 million tons. Last year, the port moved around 1.9 million tons — down more than 15 percent from 2019.

Port Milwaukee declined to comment on the 2021 shipping season as port officials await final numbers.

Other Great Lakes ports like Cleveland said overall cargo shipped was up by more than 50 percent while the Port of Toledo saw overall tonnage increase 22 percent as of the end of November, according to the Chamber of Marine Commerce.

“U.S. Great Lakes ports have roared back this year — recovering from major 2020 declines in traditional cargoes like iron ore and steel but also developing new business and seizing on opportunities for infrastructure investment,” said Bruce Burrows, president and CEO of the Chamber of Marine Commerce in a statement.

The St. Lawrence Seaway, which serves as a gateway between the Great Lakes and the Atlantic coast, saw iron ore shipments rise 17 percent while general cargo shipments increased 71 percent through November.

Senate Democrats Hit Pause on Biden’s Build Back Better Bill

Senate Democrats are putting President Biden’s climate and social spending plan on the back burner as they plan to debate voting rights legislation this month and hold a vote on changing the Senate’s filibuster rule.

Democratic aides say the Build Back Better bill won’t be ready for floor action any time soon and predict the wide-ranging legislation that the White House has negotiated with centrist Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.) may have to be completely overhauled.

Democratic aides warn that means Build Back Better probably won’t be ready to come to the floor until March or later. And whatever version of the bill comes up for a vote will be markedly different from the $1.75 trillion framework that Manchin resoundingly rejected during a “Fox News Sunday” interview on December 19, aides say.

European Union Drafts Plan to Label Natural Gas and Nuclear Investments as Green

The European Union has drawn up plans to label some natural gas and nuclear energy projects as “green” investments after a year-long battle between governments over which investments are truly climate-friendly.

A draft of the Commission’s proposal, seen by Reuters, would label nuclear power plant investments as green if the project has a plan, funds and a site to safely dispose of radioactive waste. To be deemed green, new nuclear plants must receive construction permits before 2045.

Investments in natural gas power plants would also be deemed green if they produce emissions below 270g of CO2 equivalent per kilowatt hour (kWh), replace a more polluting fossil fuel plant, receive a construction permit by December 31, 2030 and plan to switch to low-carbon gases by the end of 2035.

Gas and nuclear power generation would be labelled green on the grounds that they are “transitional” activities – defined as those that are not fully sustainable, but which have emissions below industry average and do not lock in polluting assets.

“Taking account of scientific advice and current technological progress as well as varying transition challenges across member states, the Commission considers there is a role for natural gas and nuclear as a means to facilitate the transition towards a predominantly renewable-based future,” the European Commission said in a statement.

To help states with varying energy backgrounds to transition, “under certain conditions, solutions can make sense that do not look exactly ‘green’ at first glance,” a Commission source told Reuters, adding that gas and nuclear investments would face “strict conditions”.

EU countries and a panel of experts will scrutinze the draft proposal, which could change before it is due to be published later in January. Once published, it could be vetoed by a majority of EU countries or the European Parliament.