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Health & Welfare Plans Newsletter
September 10, 2025
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💼 2 New Job Opportunities
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[Guidance Overview]
Illinois' New NICU Leave Law: Key Takeaways for Employers
"The Act applies to all Illinois employers with 16 or more employees ... Employees eligible for FMLA must first exhaust that leave, with available NICU leave to follow, provided the child remains hospitalized.... [U]nlike the FMLA, the Family Neonatal Intensive Care Leave
Act provides leave to employees regardless of their length of service or employment status (i.e., full-time or part-time). Therefore, ineligibility for leave under the FMLA is not a valid reason to deny NICU leave." MORE >>
Hinshaw
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[Guidance Overview]
Colorado Approves Extension of AI Regulation to Health Insurers
"[C]overed insurers should begin preparing now to meet the new governance, risk management, and reporting requirements: ... [1] Compare existing governance and risk management frameworks against the Amended Regulation's requirements ... [2] Ensure
directors and senior executives are prepared to oversee ECDIS and Model use ... [3] Monitor forthcoming guidance ... on testing requirements and evaluate whether current internal testing practices can be adapted to satisfy Division standards." MORE >>
Debevoise & Plimpton LLP
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[Guidance Overview]
Paid Leave Reform in Delaware: What Employers Need to Know Now
"[House Bill 128] amended the paid leave program ... [1] Employers cannot require employees to use their accrued
paid time off before receiving the state benefits. [2] An employer that meets its obligations through a private plan is not required to provide claim documentation to the Delaware [DOL], unless there is an appeal, inquiry, or audit.... [3] Disability insurance benefits can be offset by family and medical leave benefits paid to an employee pursuant to the terms of a disability insurance policy." MORE >>
Ogletree Deakins
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Eleventh Circuit: Health Plan's Gender Care Exclusion Does Not Violate Title VII (PDF)
"Anna Lange ... sought a male-to-female sex change surgery and requested that the County's employer-provided health insurance pay for it. But because the County's insurance policy excludes '[d]rugs for sex change surgery' and '[s]ervices and supplies for a sex
change and/or the reversal of a sex change,' the insurer denied Lange's request.... Lange then sued the County for disparate treatment because of sex under Title VII of the Civil Rights Act of 1964 ... We took this appeal en banc to answer whether the insurance policy facially violates Title VII. We conclude that it does not." [Lange v. Houston County, Georgia, No. 22-13626 (11th Cir. Sep. 9, 2025)] MORE >>
U.S. Court of Appeals for the Eleventh Circuit
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First Circuit Blocks 'End Run' Around ERISA Remedies
"Shortly before a reduction in force took effect, an employee was terminated for cause and informed that she was not eligible for benefits under the employer's ERISA-covered severance pay plan. Rather than file an appeal under the plan's claims procedures, the employee
sued under state law ... [T]he First Circuit concluded that the employee had merely attempted an 'end run' around ERISA with allegations that she relied on misleading statements when not claiming benefits under plan procedures. But ERISA provides the exclusive cause of action in precisely such circumstances." [Orabona v. Santander Bank, N.A., No. 24-1905 (1st Cir. Jun. 16, 2025)] MORE >>
The Wagner Law Group
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[Sponsor]
Register for the 2025 CCA Annual Meeting before Sept. 21 and Save
This three-day meeting includes 16 healthcare sessions covering the ever-changing state of the healthcare market. Topics include the role of cost transparency, Artificial Intelligence, Medicare, Medicaid, digital health innovations. 18.5 CPD credits.
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![Sponsored by Conference of Consulting Actuaries [CCA] Sponsored by Conference of Consulting Actuaries [CCA]](https://benefitslink.com/bnrs/2025/cca-2025annual-inline.jpg)
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District Court Dismisses ERISA Preemption Challenge to Arkansas Pharmacy Reimbursements Rule
"The plan challenged an Arkansas rule issued under a state [PBM] licensure act and intended to ensure 'fair and reasonable' pharmacy reimbursements and adequate pharmacy networks.... [T]he rule permits the Arkansas insurance commissioner to review the adequacy of
pharmacy reimbursement payments made by health plan PBMs.... [T]he court concluded that the plan failed to sufficiently allege that the rule referred to, or had an impermissible connection with, ERISA plans, and therefore dismissed the action." [Cent. States, Se. & Sw. Areas Health
& Welfare Fund v. McClain, No. 25-3938 (N.D. Ill. Sept. 2, 2025)] MORE >>
Thomson Reuters Practical Law
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2026 Health Plan Cost Trend Survey Report
"For 2026, the highest projected rate of increase for health benefit plan cost trends continues to be prescription drugs at double digits.... Medical plan cost trends are projected to increase by a median of 9 percent, marking the highest annual projection in more than a
decade. The projected trends for PPO/POS plans and HDHPs are similar, with the projected trend for HMO/EPO plans not far behind." MORE >>
Segal
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U.S. Employer Health Care Costs Expected to Rise 9.5 Percent in 2026
"U.S. employer health care costs are projected to rise 9.5 percent in 2026, exceeding $17,000 per employee. This marks the third consecutive year of elevated health care cost trends near double digits.... Employers are expected to continue absorbing the largest share of
health care cost increases, mitigating the rising expenditures through strategies such as benefit design changes, employee payroll contribution increases, partnerships with point solution vendors and targeted chronic condition management." MORE >>
Aon
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Personalize Employee Benefits Comms for Millennials and Gen Z
"Millennials (born 1981-1996) and Gen Z (born 1997-2012) ... are already more than half the workforce in the U.S. They were raised with algorithms that already know their shoe
size, go-to pizza toppings, and what music they like to listen to on Monday morning. ... [If] your benefits experience isn't delivered the way younger employees already consume everything else (and not even that young -- the oldest Millennials are 44!), it risks losing relevance with them before it even gets noticed." MORE >>
bswift
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More Employers Moving Away from 'Big Three' PBMs
"31% of respondents had their primary PBM contract with a transparent organization rather than one of the traditional leading companies. That's up from 12% that had a primary contract with a PBM in 2024 ... The share of respondents contracting with the 'Big
Three' -- CVS Caremark, Express Scripts and Optum Rx -- declined in tandem, with 61% saying they contract with one of these companies. By comparison, 72% were contracted with one of the Big Three in 2024." MORE >>
FierceHealthcare
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Benefits in General |
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[Official Guidance]
Text of DOL Advisory Opinion 2025-03A: Applicability of ERISA to Morgan Stanley Deferred Incentive Compensation Program
"[In] the Department's view, the mere fact that the terms of the program contemplate limited situations where an award could be paid after termination of employment does not implicate a deferral of income of the kind contemplated by ERISA section 3(2)(A). Thus, the Department has no reason to believe that the deferred incentive compensation program is an employee benefit pension plan under ERISA section 3(2)(A) as a result of such surrounding circumstances." MORE >>
Employee Benefits Security Administration [EBSA], U.S. Department of Labor [DOL]
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[Guidance Overview]
FTC Turns Up the Heat for Noncompete Enforcement
"The FTC Joint Labor Task Force on competition in the labor market is officially active ... [S]teps you can take now to ensure you stay compliant: [1] Don't abandon your restrictive covenants completely.... [2] Take stock of how you use noncompetes throughout
the workforce.... [3] Reexamine the scope of your noncompetes.... [4] Don't forget about state law.... [5] Take advantage of other protections. " MORE >>
Fisher Phillips
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[Guidance Overview]
2025 Annual Employee Benefits Compliance Checklists
Williams Mullen
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Employee Benefits Jobs
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Press Releases |
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Jose Jara Appointed to ABA Section Leadership
Fox Rothschild LLP
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Webinars, Podcasts and Conferences (Health & Welfare Plans) |
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Your Form 5500 Fantasy Game Guide – Who to Draft; When to Call a Time Out; Who to Trade; When to Kick; Overtime Strategies and How to Win before time runs out on October 15!
September 30, 2025 WEBINAR
Western Pension & Benefits Council
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The Evolving Role of Group Health Plan Fiduciaries and Plan Administrators
October 14, 2025 WEBINAR
UBA [United Benefit Advisors]
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HSAs, HRAs and Alphabet Soup: The Rules, Risks and Rewards
October 21, 2025 WEBINAR
Lockton
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HSAs: Top 10 Wrap-up (2025 Edition)
October 30, 2025 WEBINAR
Ascensus
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Last Issue's Most Popular Items |
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Prepare for Nationwide Change to HIPAA Regulations
Moss Adams LLP
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Tobacco Surcharge Class Action Litigation Risks Continue
Groom Law Group
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Relaxed Litigation Standards Continue to Shake Up ERISA’s Careful Balancing Act
Encore Fiduciary
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BenefitsLink® Health & Welfare Plans Newsletter, ISSN no. 1536-9595.
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