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Health & Welfare Plans Newsletter
April 29, 2026
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💼 5 New Job Opportunities
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[Guidance Overview]
COBRA Subsidies and Reimbursement, Part 2: How COBRA Subsidies Can Prove Costly
"Loss of the COBRA subsidy is not a HIPAA special enrollment event to enroll in another employer's plan mid-year. It may therefore be less costly for employees to immediately enroll in their new employer's plan or a spouse's plan because the subsequent full COBRA
premium cost can outweigh the initial subsidized savings.... Employers that choose to offer COBRA subsidies should be cautious to consider the potential nondiscrimination issues that can arise, particularly under Section 105(h) for self-insured (including level funded) plans." MORE >>
Newfront
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[Guidance Overview]
CRS Report: Paid Sick Leave in the United States
"This report provides an overview of employees' access to paid sick leave in the United States, discusses state laws that create an entitlement to such leave and research on the impacts of these mandates, and describes recent federal proposals to increase access to paid sick
leave." [R48921 Apr. 28, 2026] MORE >>
Congressional Research Service [CRS]
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[Guidance Overview]
IRS Clarifies Tax-Free Educational Assistance Cap to Adjust With Inflation Beginning in 2027
"The new FAQs make three substantive changes compared to the FAQs released in 2024: [1] Cost-of-living adjustment to the
$5,250 exclusion ... [2] Permanent extension of qualified education loan payments ... [3] Educator expense itemized deduction (starting 2026)." MORE >>
Ogletree Deakins
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[Guidance Overview]
Virginia Enacts a Broad Paid Family and Medical Leave Program
"Employers must provide eligible employees with job-protected leave to bond with a new child, or care for themselves or a covered family member ... Employees must receive a percentage of weekly wages (approximately 80%), capped at 100% of the statewide average weekly wage
for up to 12 weeks ... The program is funded through both employer and employee contributions, with employers permitted to deduct up to 50% of the contribution from the employees' wages" MORE >>
Groom Law Group
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Lawsuit Challenging Employer Health Plan Options Survives Motion to Dismiss
"The court declined to consider the settlor, rather than fiduciary, nature of the decision to offer a second medical plan option at the motion to dismiss stage even though there cannot be a fiduciary breach when there is no fiduciary action or inaction.... If this lawsuit is
successful or spawns other similar lawsuits that survive motions to dismiss, employers that offer employees a choice among multiple medical plan options could decide that it is not worth the additional costs and exposure to provide employees with the choice of multiple medical plan options." [Barbich v. Northwestern Univ., No. 25-6849 (N.D. Ill. Apr. 2, 2026)] MORE >>
Holland & Hart LLP
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When FMLA Has Impeccable Timing Around a Holiday, This Is What Employers Shouldn't Do.
"The court found that holiday timing and aggregate statistics, standing on their own, did not inherently establish FMLA misuse. In other words, just because an employee's absences seem to line up a little too neatly with desirable days off does not automatically mean the
employee is gaming the system.... The court pointed to evidence that CSX may have provided 'systematically better treatment' to employees with other serious medical conditions, including cancer, terminal illness, and late-term pregnancy." [Brown v. CSX Transportation, Inc., No.
24-2777 (M.D. Fla. Jan. 23, 2026)] MORE >>
FMLA Insights
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Q2 Benefits Compliance Checklist
"With tax deadlines still fresh and enrollment activity behind you, now is the ideal time to address ongoing obligations that are often overlooked until they become urgent. This checklist highlights the key compliance areas benefits administrators should review early in Q2 to
stay on track and avoid costly mistakes later in the year." MORE >>
Ameriflex
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HIPAA at 21 Years of Compliance: Why the Security Rule May Be Entering a More Prescriptive Era
"Risk analysis remains the foundation of HIPAA Security Rule compliance and continues to be a key OCR enforcement focus. Business associates and vendors are a major source of healthcare cybersecurity risk, making third-party oversight essential. Incident response, workforce
training and documented security decisions are now critical markers of a defensible compliance program." MORE >>
BakerHostetler
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AI in Benefits Admin: The Iceberg [Infographic]
"Most conversations about AI in benefits administration cover the visible moments: the chat window, the enrollment recommendation, the dashboard that answers a question in plain English. That’s not wrong. But it’s profoundly incomplete." MORE >>
bswift
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Employees Are Ditching Benefits for Their Own Health Apps
"According to the survey, which polled around 2,000 U.S. employees, only about one-third clearly understand what benefits are available or use them regularly. More than half use at least one consumer health or wellness app, and 46% pay out of pocket for solutions that feel more
relevant or easier to use.... Sixty-one percent spend at least $100 annually, with nearly a third topping $500 and 15% spending up to $1,500." MORE >>
Employee Benefit News [EBN]; login required
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Microsoft Copilot Health: Another Player in AI-Driven Healthcare
"While Copilot Health's entry into this rapidly evolving field is notable, the legal issues it raises are myriad and similar to those implicated by other similar products.... Legal professionals advising health systems, insurers, or technology vendors should begin assessing
the impact of tools like Copilot Health on how data is shared with such tools and how patient care will change over time as a result." MORE >>
Epstein Becker Green
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GAO Report on Federal Employees Health Benefits Program: Additional Actions Needed to Address Significant Risks in Verifying Provider Eligibility
"GAO found that selected FEHB carriers -- which operate health benefit plans -- do not always notify patients that their providers are suspended or debarred, as required. Carriers also did not notify OPM OIG when providers may warrant suspension or debarment, as
required by OPM OIG policy. Clarifying requirements would help OPM and OPM OIG ensure that patients are not exposed to risks related to suspended or debarred providers." [GAO-26-108139 Apr. 29, 2026] MORE >>
U.S. Government Accountability Office [GAO]
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[Opinion]
ERIC Statement for the Record for House Ways and Means Committee Hearing with Health System CEOs (PDF)
"Hospital pricing remains a primary driver of rising health care costs for employers and workers. As large health systems acquire hospitals and physician practices, they eliminate competition and increase the prices charged to patients and purchasers of care.... Provider
consolidation continues to accelerate ... This consolidation enables providers to command higher prices and exert increased pressure in contract negotiations." MORE >>
The ERISA Industry Committee [ERIC]
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Benefits in General |
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[Guidance Overview]
A DOL Reset?
"As to civil (not criminal) enforcement, [FAB
2026-01] establishes a clear lodestar. The emphasis is to be on breaches of the duty of loyalty ... [E]nforcement activities need to have a close connection with: [1] The plain language of ERISA's text, [2] Clearly established guidance in final DOL regulations or prominently published sub-regulatory guidance, or [3] Clearly established court decisions.... [T]he DOL's Assistant Secretary must be
informed by field personnel of 'significant enforcement activity,' which is to include any proposed settlements or voluntary corrective actions.... EBSA investigators and professionals must not do anything that compromises the DOL's independence, integrity, and credibility with the regulated or participant communities." MORE >>
Spencer Fane
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[Guidance Overview]
The ERISA Preemption Defense for Service Providers
"That strategy of recasting claims for benefits under an ERISA plan as claims under state law ... runs headlong into one of ERISA's most potent defenses: the preemption defense. This defense is particularly important for companies that work in and near the employee
benefits space and find themselves targeted with litigation arising from their work.... For example, where an employee accuses an insurer or technology platform of misrepresenting the availability of a particular benefit and seeks damages arising from the misrepresentation, that claim will generally be preempted." MORE >>
Lasher
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Employee Benefits Jobs
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Recent Graduate - Employee Benefits Investigator
Employee Benefits Security Administration [EBSA]
Atlanta GA / Covington KY / Pasadena CA / Philadelphia PA / Silver Spring MD / Boston MA / Dallas TX / Fort Lauderdale FL / San Francisco CA / Chicago IL / Kansas City MO / New York NY / Seattle WA / Hybrid
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Press Releases |
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Benefitfocus Expands ICHRA Administration Capabilities with Integrated Data Exchange for Health Plans
Benefitfocus
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Hall Benefits Law Opens North Carolina and Ohio Offices and Welcomes Wendy Baker and Jeremy Sharp
Hall Benefits Law
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Webinars, Podcasts and Conferences (Health & Welfare Plans) |
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The Future of Local Leave Laws: What NYC’s Expansion Signals for Employers Nationwide
April 30, 2026 WEBINAR
Littler
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Employee Benefits & Compensation Summit
May 7, 2026 in TN
Middle Tennessee Society for Human Resource Management [MTSHRM]
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Last Issue's Most Popular Items |
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Text of CMS Key Dates for Calendar Year 2026 (PDF)
Centers for Medicare & Medicaid Services [CMS], U.S. Department of Health and Human Services [HHS]
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What Employers Need to Know About Voluntary Benefits Litigation
Vorys
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Virginia's New Paid Family and Medical Leave Law Is Not Just FMLA with Pay Added
Polsinelli PC
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Copyright 2026 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.
BenefitsLink® Health & Welfare Plans Newsletter, ISSN no. 1536-9595.
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