We recently learned that certain pharmacy benefit managers (PBMs) in Tennessee are notifying plan sponsors of self-insured plans that their prescription drug claims data may be provided in response to market conduct audits by the Tennessee Department of Commerce and Insurance (TDCI). The notices state that plan sponsors who do not want their information disclosed…

On August 10, 2026, the IRS released proposed regulations that would update key non-discrimination testing (NDT) rules applicable to dependent care assistance programs (DCAPs).  Although these rules are not final, the IRS has indicated that employers can rely on the proposed regulations for plan years beginning before final rules are published.​ Background:​ IRC Section 129 allows employees…

The IRS recently issued Revenue Procedure 2026-26 announcing the 2027 affordability threshold (contribution percentage) for determining the affordability of employer-sponsored health plans under the Affordable Care Act (ACA).     Background:   The ACA’s “pay or play” rules require applicable large employers (ALEs) – those with 50 or more full-time equivalent employees – to offer affordable, minimum-value health coverage to their…

The IRS has released updated limits and rules for Health Savings Accounts (HSAs), high-deductible health plans (HDHPs), Direct Primary Care Service Arrangements (DPCSAs), and excepted benefit HRAs. HSA contribution limits: Individual coverage: up to $4,500 per year. Family coverage: up to $9,000 per year. High-deductible health plan requirements: To qualify for an HSA, plans must…

Virginia has officially enacted a statewide Paid Family and Medical Leave (PFML) insurance program, creating new compliance obligations and strategic considerations for employers operating in the state. Below is a summary of the key provisions and timelines to be aware of: Program Overview Employer Contributions Key Dates Covered Leave Reasons Compliance Considerations What This Means…

Congressional focus on the underlying drivers of health care costs is accelerating, with increasing attention on hospital pricing, market consolidation, and structural inefficiencies that directly impact employer-sponsored health plans. The House Ways and Means Committee recently convened a hearing to examine these issues, featuring testimony from executives representing major U.S. health systems. In conjunction with…

With the start of a new year, there are several important reporting deadlines upcoming with respect to the federal Affordable Care Act (ACA), state individual mandate laws and W-2 reporting. W-2 Reporting: Employers must provide W-2s for the 2025 tax year to employees by January 31, 2026 (extended to the following business day if the…

In October, the departments of Treasury, Labor and Health and Human Servies (the “agencies”) issued FAQs clarifying how stand-alone fertility benefits may be offered under existing excepted benefit rules. These FAQs were released in response to Executive Order 14216, Expanding Access to In Vitro Fertilization, issued by the Trump administration in early 2025.  The FAQs do not change current rules or regulations. However, the agencies did indicate their intent to issue future regulations that could expand the ways fertility benefits can be offered as a type of limited…

Starting in 2026, the landscape of paid family and medical leave (PFML) is set to shift significantly. Thanks to the One Big Beautiful Bill Act (OBBBA), the Section 45S tax credit is now permanent—and more accessible. This change is intended to encourage broader adoption of PFML policies across U.S. workplaces. What’s Changing? OBBBA introduces several…

The Internal Revenue Service (IRS) has released Revenue Procedure 2025-32 announcing new 2026 inflation-adjusted limits for Health and Dependent Care FSAs and qualified Commuter Benefits. This is in addition to the annual limits previously announced in Revenue Procedure 2025-19 (previous alert). 2026 Health FSA Limits: 2026 Dependent Care FSA Limit: 2026 Commuter Benefit Limits: Client…