Regulatory Transactions

Editor’s Note: See Jim Tozzi on OMB Review of IRS Regulations.

From: KPMG

The new tax law in the United States generally retained the existing subpart F regime that applies to passive income and related-party sales, but a new, broad class of income—“global intangible low-taxed income” (GILTI)—was created. GILTI is also deemed repatriated in the year earned and, thus, is also subject to immediate taxation. GILTI income is effectively taxed at a reduced rate while subpart F income is taxed at the full U.S. rate. In general, GILTI is the excess of all of the U.S. corporation’s net income over a deemed return on the CFC’s tangible assets (10% of depreciated tax basis).

Editor’s Note: See also A Regulatory Antidote for CCS (Carbon Capture and Storage) and CRE’s archived Interactive Public Docket: Does CCS Meet BACT Requirements under the DQA?

From: The Hill | Opinion

BY BONNER R. COHEN

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Now Trump is skinning Obama’s cat. Last year, he issued an executive order rescinding the CPP and putting forward his own plan. The EPA estimates the Trump initiative will cover more than 300 coal-fired power plants nationwide, with the goal of providing electric utilities with incentives to keep coal plants operating rather than replacing them with facilities powered by natural gas or renewable energy.

From: Health Affairs Blog

Rachel Sachs

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Finally, CMS’ boldest action to date might come in a proposed rule currently under review at the Office of Information and Regulatory Affairs. The rule proposes to eliminate the current safe harbor protection for pharmaceutical rebates under the anti-kickback statute and to create a new safe harbor. Without more information, it is not known how important this proposal will be, and many procedural steps (and therefore many months) remain before such a rule could be finalized. (Incidentally, MA plans often rely on pharmacy benefit managers (PBMs) to help control their Part B spending, so although the administration may seek to limit the power of PBMs with this proposed rule, the step therapy announcement doubles down on their importance.)

From: Inside Health Policy

After more than six months, the White House Office of Management and Budget has finished reviewing a proposed rule to ease Medicare-participation requirements for providers. The OMB review started in February, and ended Aug. 10, according to the office’s website. The proposed rule, “Regulatory Provisions to Promote Program Efficiency, Transparency and Burden Reduction,” is expected to be a wide-ranging rule that CMS says would “reform Medicare regulations that are unnecessary, obsolete, or excessively burdensome on healthcare providers and suppliers.” . . .

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From: The Hill

BY NATHANIEL WEIXEL

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In a letter to Office of Management and Budget (OMB) Director Mick Mulvaney, House Energy and Commerce Committee Chairman Greg Walden (R-Ore.) and Senate Finance Committee Chairman Orrin Hatch (R-Utah) said they want a full analysis of a pending proposed rule regarding prescription drug rebates.

“The publicly available title of the rule indicates that the action contemplated could be significant in scope, with the potential to dramatically change the process by which prescription drugs are purchased within the supply chain,” Walden and Hatch wrote.

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Editor’s Note: Cross-posted from FISMA Focus/Federal Cyber Security.

From: FCW

By Mark Rockwell

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The work to get the RMF completed includes discussions with the White House’s Office of Information and Regulatory Affairs on the privacy additions, Ross said in remarks after a panel at FCW’s Aug. 9 Cybersecurity Summit.

Those discussions with OIRA, he said, are important because the latest version of the RMF will cover a number of critical areas, including supply chain and systems engineering but also privacy.

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From: BNA

By Brian Broderick

A new Medicaid rule affecting how managed care plans enroll doctors, hospitals, and other health-care providers is on the way from the Trump administration.

The White House Office of Management and Budget started review Aug. 3 of the proposal on managed care provider enrollments and terminations, based on a recent OMB posting at reginfo.gov. Details aren’t yet available on what’s in the proposal from the Centers for Medicare & Medicaid Services, but an industry group and a Medicaid policy attorney told Bloomberg Law they’re watching to see how the measure could affect Medicaid managed care, especially whether the CMS will allow more flexibility to industry.

Editor’s Note:  See also Canada and United States sign Memorandum of Understanding for regulatory cooperation.

From: KamloopsMatters.com

OTTAWA — Canada will review the joint vehicle emissions standards it has with the United States before it decides what to do about the U.S.’s plan to weaken those standards in the coming years.

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“The reality is because we have always followed what the U.S. has done it makes sense to see what comes out of the other end of the U.S. regulatory review process,” said David Adams, president of Global Automakers of Canada

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