"Increasing the maximum pre-tax contributions employees can make to a DCFSA ... may cause the DCFSA to be discriminatory under IRC section 129. This is because it is likely that highly compensated employees (HCEs) will utilize the increase more than lower-paid employees.... [C]onsider conducting projected non-discrimination testing to assess the potential for failure and the resulting tax consequences for HCEs."  MORE >>

"The 2026 indexed affordability standard ... will see an increase to 9.96% of an employee's household income.... Applicable Large Employers (ALEs) could potentially increase employee premiums in 2026.... For 2026, an ALE that does not offer MEC coverage to at least 95% of their full-time employees ... may be assessed a $278.33 per full-time employee per month A penalty ... [S]ome employers run the numbers and decide to 'pay' for intentional noncompliance with the ACA's employer mandate instead of 'play' (i.e., comply with) the requirements.... ALEs that have decided the risk of the 'pay' approach is worthwhile may want to reconfirm that's still the approach they want to take."  MORE >>

"[FAQs Part 71] reiterates that Sections 102 through 105 of the Act extended statutory protections under multiple federal codes ... Part 71 further discusses the ACA's maximum annual out-of-pocket cost-sharing limits for essential health benefits under Section 1302(c)(1) of the ACA. The FAQs clarify how cost-sharing limits apply when out-of-network services are billed.'

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"[P]lan sponsors should consider whether offering first dollar coverage for telehealth coverage or a DPC Arrangement meets their organization's employee benefits strategies. Plan sponsors that want to offer loan assistance through their qualified education assistance plan will need to amend their plan ... Plan sponsors may always want to evaluate how the increased [DCAP] limit may impact nondiscrimination testing."  MORE >>

"[E]ach qualified beneficiary has an independent right to elect COBRA. For example, the covered spouse or child may continue coverage through COBRA even if the employee is declining COBRA.... Independent election rights can create some unusual scenarios in COBRA that do not occur in active coverage.... [T]he IRS has issued guidance that addresses the amount that employers can charge for the COBRA premium. "  MORE >>

"Several new lawsuits have been filed recently alleging that employers violated HIPAA's non-discrimination rule by charging higher health insurance premiums to employees who use tobacco products.... In order to satisfy the wellness program exception, a tobacco surcharge must be implemented as part of an employer's health plan, and employees must have a reasonable opportunity to avoid the surcharge or opt into a reasonable alternative at least once per year."  MORE >>

"[This article provides] a high-level overview of the various nondiscrimination rules that can apply to health and welfare plans, [as well as] some of the unsettled ambiguities in the nondiscrimination rules under Sections 125 and 105(h) of the Internal Revenue Code."  MORE >>

"Employees taking funeral honors detail leave must be paid their regular rate of pay, and need not exhaust vacation leave, personal leave, sick leave, or any other available leave that may be granted to the employee before taking paid funeral honors detail leave."  MORE >>

"The Act significantly amends the provisions governing how an employer's paid leave policies integrate with and coordinate with Delaware Paid Leave benefits.... [T]he law now provides that an employer may not require use of accrued paid time off prior to receipt of Delaware Paid Leave benefits.... [T]he Act also sets forth procedures for the Department to execute upon judgments for penalties issued under the program[.]"  MORE >>