Health & Welfare Plans Newsletter

June 26, 2026

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[Guidance Overview]

Mid-Year Paid Family Medical Leave Update

"Several jurisdictions have now issued updated state average weekly wages (SAWW) used to calculate benefit payouts. As is typical, the timing and scope of these changes vary by jurisdiction, requiring employers to stay closely attuned to state-specific developments."  MORE >>

Littler

[Guidance Overview]

What Is the Employer's Role in a Voluntary Plan Safe Harbor Arrangement? (PDF)

"[F]or a voluntary plan arrangement to fall within the safe harbor, the employer's role is strictly limited by DOL regulations. Specifically: [1] [The employer] cannot require or coerce employees to participate.... [2] The employer cannot make any contributions to the plan.... [3] The employer's functions are limited ... [4] Employers cannot endorse the plan.... [5] Employers may not receive any consideration from the insurer. "  MORE >>

Thomson Reuters / EBIA

[Guidance Overview]

New York Pharmacy Law May Impact PBM Contracts and Rx Costs

"Assembly Bill A9729, effective as of May 22, 2026. is fundamentally a pharmacy practice and licensure law, not a benefits mandate.... Although it does not directly regulate employer health plans, it substantively affects the pharmacy and PBM environment that plans operate within."  MORE >>

HUB International

[Guidance Overview]

San Francisco HCSO in 2026: Compliance Arrangements Require a Second Look

"As many employers are navigating higher 2026 HCSO payments, the increase in expenditure rates offers a timely opportunity for employers to review their HCSO compliance process. Failure to meet all compliance requirements using supportable methodology4 could result in investigation, corrective action, and penalties from the San Francisco Office of Labor Standards Enforcement."  MORE >>

Milliman

[Guidance Overview]

Maryland's Family and Medical Leave Insurance (FAMLI): What Employers Need to Know

"Employers must register online starting in Fall 2026.... Contributions begin January 1, 2027 for employers with 15 or more employees.  ... Employers must notify employees of their FAMLI rights beginning July 2027, at hire, annually, and whenever leave is requested.  ... Beginning in April 2027, employers must submit quarterly wage and hour reports to the FAMLI division, even if you participate in a private plan."  MORE >>

Saul Ewing LLP

What Counts as Your ERISA Plan Document? District Court Limits Discovery and Defines the Record

"overruled Plaintiff's objection to a magistrate judge's order that granted in part and denied in part her motion for additional discovery in an ERISA benefits dispute. The decision walks through several recurring fights over the scope of ERISA discovery and the contents of the administrative record, and it resolves each one against Plaintiff." [Mayor v. Metropolitan Life Ins. Co., No. 25-0012 (D. Utah June 24, 2026)]  MORE >>

Roberts Disability Law

District Court Upholds ERISA Severance Denial Where Plan Administrator Used Shortest-Driving-Distance to Measure Commute

"Plaintiff claimed severance benefits on the theory that the new commute exceeded a 'Reasonable Commute Distance,' which the Plan defined to require, among other things, a resultant commute from home to the new work site exceeding 40 miles one way.... The Court held that Wells Fargo reasonably interpreted 'commute (measured in miles)' to mean the shortest driving distance, irrespective of travel time." [Foley v. Wells Fargo & Co., No. 25-4795 (N.D. Cal. June 23, 2026)]  MORE >>

Roberts Disability Law

Another District Court Ruling Upends CMS's Medicare Advantage Ratings

"Clover departs from prior Star Ratings rulings, where courts only accepted challenges based on CMS's failures to follow its own guidelines. Clover successfully challenges CMS's authority to use certain measures in the first place and the procedures CMS must follow to use them rather than how CMS used the measures." [Clover Ins. Co. v. HHS, No. 25-0142 (S.D. Ga. May 27, 2026)]  MORE >>

Groom Law Group

GLP-1 Weight Loss Pills May Be Bad Thing for Job Insurance Coverage

"In 2025, nearly half of all large employers covered GLP-1 medications, but costs are becoming prohibitive and more employers cut back on coverage in 2026 and are talking about more cuts in 2027. While the GLP-1 pills are priced essentially the same as injectables, trials show they are less effective for weight loss, and it's possible that some employers may not put them on their list of covered drugs."  MORE >>

CNBC

Mental Health Benefits Survey: What Workers Need

"Overwhelmingly, the survey participants are familiar with their mental health benefits, and they trust the information they get about them....More than half of workers who are caregivers said people are encouraged to use mental health benefits, and it feels normal to do so compared to less than half of workers who are not caregivers. Normalized use of mental health benefits differs by industry, from a high of 50 percent of workers at professional services firms to a low of 23 percent of workers in construction."  MORE >>

Segal

Provider Networks and Out-of-Pocket Costs Drive Health Plan Choice (PDF)

"Provider networks were the most important factor when choosing a health plan, outranking premiums and other plan features.... Traditional plan enrollees placed greater importance on lower out-of-pocket costs when receiving care, while high-deductible plan enrollees placed greater importance on lower premiums. Prescription drug coverage increased in importance compared with prior years."  MORE >>

Employee Benefit Research Institute [EBRI]

National Health Expenditure Projections, 2025-34: Strong Utilization Growth Initially, Legislative Impacts Later

"By 2034, national health spending is projected to total nearly $9.0 trillion and to represent 20.6 percent of the economy, compared with $5.3 trillion and 18.0 percent in 2024. The rate of national health spending growth during this period is influenced by continued elevated use of medical services and goods through 2026; major legislative changes that affect insurance coverage and spending through 2028; and continued demographic shifts toward public programs, mainly Medicare. The insured share of the population is expected to be 90.5 percent in 2034, compared with 91.8 percent in 2024."  MORE >>

Health Affairs Forefront

[Opinion]

HSAs Aren't the Answer to the Health Care Affordability Crisis

"[1] HSAs mainly help people with higher incomes, while doing little for people struggling the most with health care costs.... [2] HSAs benefit insurance companies and banks at the expense of people with low and moderate incomes.... [3] HSAs exacerbate racial disparities in wealth.... [4] HSAs don't protect people from major health care costs.... [5] The cost of HSAs crowds out policies that truly address affordability."  MORE >>

Center on Budget and Policy Priorities

Benefits in General

[Guidance Overview]

Employer Trump Account Programs: DOL Says ERISA (Almost Never) Applies

"[The authors] expect that most employers who are interested in establishing Trump account contribution programs intend to do so through a pre-tax salary-reduction feature under a cafeteria plan and/or by providing what has been referred to as a 'match' of the $1,000 seed money provided to the Trump accounts of eligible children born between 2025 -- 2028, which is an employer contribution. For the most part, [in Technical Release 2026-02] DOL has clarified its view that ERISA does not apply to these arrangements."  MORE >>

Thompson Hine

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Selected New Discussions

COBRA and Dependent Audits

"My understanding is that if an employer finds ineligible dependents enrolled in health insurance plans as a result of an audit, the employer is not obligated to offer COBRA to those that are removed from coverage. Can the employer choose to extend COBRA to these folks or is that not permissible or creates other compliance issues."

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Press Releases

Surety One, Inc. Launches ERISAblog.com Opening Three Decades of Knowledge to Plan Sponsors, Advisors and Fiduciaries

Surety One

Webinars, Podcasts and Conferences
(Health & Welfare Plans)

Navigating the New Frontier of Employer Health & Welfare Plan Risk: Fiduciary Litigation, Enforcement and Compliance Strategies for 2026

July 15, 2026 WEBINAR

Fox Rothschild LLP

Last Issue's Most Popular Items

AI-Generated SPDs: Convenience Meets Compliance Risk

Haynes Boone

CMS Memo: 2024 Benefit Year HHS Risk Adjustment Data Validation (HHS-RADV) Results (PDF)

Centers for Medicare & Medicaid Services [CMS], U.S. Department of Health and Human Services [HHS]

New Medicare GLP-1 Programs Could Bring Unexpected Costs for Group-Based Retiree Health Plans

Alight Solutions

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BenefitsLink® Health & Welfare Plans Newsletter, ISSN no. 1536-9595.

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