"The tax exclusion under Section 125 is available only to employees as defined by the IRC. Put simply, if the [IRS] treats an individual as an owner rather than an employee, they are not eligible for pre-tax deductions under Section 125.... [I]ndividuals who are considered self-employed for tax purposes do not qualify as employees under this definition and cannot participate in a Section 125 plan on the same basis as W-2 employees."  MORE >>

"The Revised FAQ now provides that ... the annual limit ... will be adjusted for increases in the cost of living for taxable years beginning after 2026.... Revised Q1 provides that an employer 'must' tell employees whether there is a Section 127 educational assistance program where they work.... Revised Q8 asks whether 'officers, shareholders, self-employed individuals, highly compensated employees and owners' can receive educational assistance, and answers affirmatively, noting that the program must still satisfy the non-discrimination requirements of Section 127 [.]"  MORE >>

"This clarification removes a compliance obligation for employers that sponsor HRAs ... [E]mployers will no longer need to separately evaluate and disclose the creditable coverage status of their account-based plans. For individuals, the change is equally practical: those with both major medical coverage and an account-based plan will no longer need to reconcile potentially conflicting notices to determine whether they truly have creditable coverage."  MORE >>

"[A] Massachusetts Superior Court clarified that the Massachusetts PFMLA does not impose individual liability to corporate officers or agents because the law's definition of 'employer' does not extend liability to individuals. The court also rejected an aiding-and-abetting theory under the PFMLA." [Laughlin v. BinStar, Inc. (Delaware), No. 2584CV01816 (Mass. Super. Ct. Feb. 26, 2026)]  MORE >>

"The standardized approach will be used for medical services that are commonly subject to prior authorization, such as orthopedic surgeries and imaging services, including CT scans and MRIs ... These services span commercial coverage, Medicare Advantage and Medicaid managed care.... This initiative is part of an industry-wide commitment announced last summer to smooth out the prior auth process and also improve transparency and communication around determinations."  MORE >>

"In fragmented private systems, delivering VBHC is inherently complex and requires both hard and soft skills that are often alien to both insurers and providers. This has been one of the key drivers of vertical integration in the industry, where a single entity holds both the funding and provision levers. However, while the potential for success is greater in single payer, vertically-integrated systems, it is far from guaranteed."  MORE >>

"While HIPAA enforcement is common in the healthcare sector, actions directly against employer-sponsored group health plans are not as common. This case, coupled with DOL guidance for ERISA fiduciaries concerning cybersecurity, underscores a growing regulatory focus not only on traditional healthcare entities, but also on the plans and ecosystems maintained by employers under ERISA."  MORE >>

"The Proposed Rule would reinstate a four-factor test for determining 'vertical' joint employment and readopt a well-established criterion for 'horizontal' joint employment.... [T]he Proposed Rule would also align joint employer determinations under the Family and Medical Leave Act (FMLA) ... with the FLSA standard ... According to the DOL, the goal is to provide clarity and a measure of uniformity for employers, workers, and federal wage and hour enforcement alike."  MORE >>

"Some organizations have Employee Resource Groups (ERGs), also known as affinity groups, that provide support to groups of employees ... Not quite 40 percent of respondents indicated they have ERGs and of those that do, forty percent use those groups to provide tailored retirement plan education (15 percent of all respondents)."  MORE >>