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COBRA Subsidy: You've Got Questions ... We've Got Answers

"A recent Ogletree Deakins webinar on the COBRA coverage subsidy under [ARPA] produced more questions than the presenters could address during the webinar. [This article provides] answers to some of the most common and interesting questions[.]"

IRS Delays Enforcement of PFML Tax Rules

"[IRS] announced that it extended the grace period for states and employers to report tax information about benefits paid through a state's paid family and medical leave program. For 2026, states and employers will not have to comply with tax and income reporting obligations related to those benefits.... Thirteen states and Washington, D.C., have enacted state-run paid family and medical leave programs."

New York Department of Financial Services’ Industry Letter: Foreshadowing Enforcement of Vendor Management?

"[T]he New York State Department of Financial Services (NYDFS) issued an industry letter ... which clarifies covered entities' responsibilities when engaging third‑party service providers (TPSPs) that access information systems or nonpublic information (NPI). Although the guidance does not add new rules to the NYDFS Cybersecurity Regulations, it clarifies regulatory requirements with respect to TPSPs, provides suggestions for best practices, and may signal increased regulatory focus on third-party risk management."

Maryland’s Reissued Proposed Regulations on Paid Family and Medical Leave Insurance Claims

"Starting no later than January 3, 2028, the FAMLI program will provide most Maryland employees up to twelve weeks of paid leave for certain family and medical reasons, with a possible additional twelve weeks for parental bonding, per benefit year.... The proposed Claims chapter offers additional key definitions, recognizes qualifying events, identifies required documentation, sets deadlines, calculates duration and amounts of benefits, mandates notices to employees and employers, coordinates FAMLI with other benefits, and addresses overpayments and fraud (albeit briefly)."

Employers Grapple with GLP-1 Coverage for Weight Loss

"About 19 percent of companies with 200 or more workers, and 43 percent of firms with 5,000 or more workers, covered GLP-1 drugs for weight loss in their largest health plan in 2025 ... Employers that want to avoid covering GLP-1s for weight loss in their general health plans could provide a health reimbursement account (HRA), using pre-tax dollars, to cover a portion of the cost of these medications.... Another option for employers is to provide an HRA contribution incentive for employees who participate in weight loss programs."

Massachusetts Paid Family and Medical Leave Program: November 2025 End-of-Year Update

"The Massachusetts Department of Family and Medical Leave (DFML) has issued its 2026 poster, individual notices, and rate sheets for the state's Paid Family and Medical Leave program. The maximum weekly benefit amount and the state average weekly wage will increase slightly going into 2026, but for the third year in a row, the total contribution rates for employers and employees will hold steady. The IRS has issued tax guidance on Paid Family and Medical Payments, [about] which the MA DFML has issued a detailed memorandum[.]"

IRS Issues Roth Catch-Up Contribution Rules for Highly Paid Participants

"The new regulations confirm that plans should determine impacted participants by looking at each participant's prior year Social Security earnings as reflected in Box 3 on Form W-[2] Participants whose earnings exceed $145,000 (or the COLA limit of $150,000, if applicable) in 2025 will be subject to the Roth catch-up requirement for plan years beginning in 2026. Employees who did not have Social Security earnings from the employer during the prior year will not be subject to the Roth catch-up requirement."

Illinois PBM Law to Limit Steering, Other Plan Design Features in 2026

"[E]mployer-sponsored health plans will not be able to require employees to use -- or give them financial incentives to use -- pharmacies owned or controlled by their pharmacy benefit managers (PBM), but will stand to receive 100 percent of the rebates received by a PBM or an affiliated rebate aggregator. Illinois's 'Prescription Drug Affordability Act' will further impact employer plans by prohibiting PBMs from using 'spread pricing'[.]"

California Expands Leave and Protections for Victims of Violence

"Employees in California who are victims of violence -- and their family members who are victims -- now have expanded leave protections when they seek legal, medical, mental health, or safety planning services. The new law, Assembly Bill (AB) 406, which Governor Gavin Newsom signed on October 1, 2025, and which took effect immediately, prohibits discrimination and retaliation and clarifies employer obligations, documentation options, and confidentiality."

Maryland DOL Reissues FAMLI Proposed Regs

"This new proposal -- open for public comment until November 17, 2025 -- withdraws the prior proposed regulations and reissues four chapters: General Provisions; Contributions; Equivalent Private Insurance Plans (EPIPs); and Dispute Resolution. The Claims chapter has not yet been reissued. Several key changes appear across the reissued chapters."