News of the Day

Yesterday, Assembly Speaker Robin Vos (R-Rochester) announced the creation of the Special Assembly Committee on Trade and Supply Chain. State Representative Rob Brooks (R-Saukville) will Chair the new committee.

“Across the state and country, demand is high, quantity is low, prices are increasing, and workers are scarce. The creation of this committee is another step Assembly Republicans are taking to support the Wisconsin businesses, families, and individuals who are impacted by these economic factors. I have full confidence Representative Brooks and the members of the committee will work hard to address these issues,” stated Speaker Vos.

The Committee on Trade and Supply Chain will focus on the relationship between the labor shortage and supply chain interruptions and the impacts and barriers this creates for businesses and consumers. The committee will examine the disruptions in production and distribution of products over the last two years, the lack of workers in the labor market, and Wisconsin’s role in recovering.

Wisconsin Republicans have introduced a package of bills that would scale back safety net programs like unemployment insurance and Medicaid, arguing the government is to blame for the state’s workforce shortage.

“The more people that are on these programs who don’t truly need them, the more the programs are stressed, and the less funding is available to help the truly needy,” said Rep. Tyler August, R-Lake Geneva, at a Madison press conference Tuesday introducing the package.

The measures introduced by Republicans on Tuesday include:

• A plan to “index” Wiscosin’s unemployment insurance benefits to the state’s unemployment rate. Right now, people can receive up to 26 weeks of unemployment insurance. This plan would allow for the full 26 weeks only when the state’s unemployment rate is greater than 9 percent. When the unemployment rate is less than or equal to 3.5 percent, benefits would be cut off after 14 weeks.
• A proposal that would cut off Medicaid, or BadgerCare, to adults without kids if they turn down an offer to work more, or turn down an increase in pay. Some BadgerCare recipients are reluctant to increase their hours out of fear they’ll lose their current health plan and be unable to afford similar health insurance on the private market.
• New penalties for unemployment insurance recipients who “ghost” employers, or don’t show up to a scheduled job interview.
• A work requirement for able-bodied adults without kids who are seeking FoodShare benefits.
• A measure that would ban the state Department of Health Services from automatically renewing eligibility for medical assistance benefits.
• Proposals that would rebrand Wisconsin’s unemployment insurance program as “reemployment assistance” and create new penalties for unemployment insurance fraud.

Evers spokesperson Britt Cudaback did not say whether the governor would veto the plans, but in a written statement, she highlighted Evers’ ongoing effort to use federal recovery funds to address the state’s workforce issues.

Retail sales totaled roughly $887 billion in November and December, a record figure that represents a 14.1 percent increase over 2020, according to an analysis from the National Retail Federation (NRF).

“We closed out the year with outstanding annual retail sales and a record holiday season, which is a clear testament to the power of the consumer and the ingenuity of retailers and their workers,” NRF President and CEO Matthew Shay said in a statement. “The numbers are clear: 2021 was an undeniably outstanding year for retail sales.”

NRF credited the strong sales to consumers’ increased wages and high personal savings. Clothing stores saw the largest increase in sales, up 33.1 percent, while sales at sporting goods stores and general merchandise stores increased by 20.9 percent and 15.2 percent, respectively.

The figures, which are based on U.S. Census Bureau data, exclude car dealers, gas stations and restaurants, which were among the businesses hardest hit by the omicron surge in December.

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.

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.

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.

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.

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.

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.

A 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.