The Daily Brief for Benefits Professionals
BenefitsWire
Health & Welfare Plans
July 28, 2026
— § —
5 items · ~2 min read
Top of the Brief
Artificial Intelligence in Employee Benefits: Litigation, Tools, and Emerging Regulation“While these technologies promise efficiency and cost savings, recent litigation and regulatory activity underscore that the use of AI in benefits administration carries meaningful legal and fiduciary risk. Below we highlight key developments that plan sponsors can watch as they assess their use of AI in connection with employee benefit plans. AI tools are increasingly embedded in both internal and third-party platforms used by plan sponsors and participants. Health insurers, benefits providers, and plan sponsors are rolling out AI-driven tools on their websites (e.g., plan benefits sites) to help participants and beneficiaries locate providers, estimate costs, and better understand their cov”
In this issue
General Benefits (3) · Health & Welfare Plans (1) · Regulatory Action and Guidance (1)
General Benefits
3 items“While these technologies promise efficiency and cost savings, recent litigation and regulatory activity underscore that the use of AI in benefits administration carries meaningful legal and fiduciary risk. Below we highlight key developments that plan sponsors can watch as they assess their use of AI in connection with employee benefit plans. AI tools are increasingly embedded in both internal and third-party platforms used by plan sponsors and participants. Health insurers, benefits providers, and plan sponsors are rolling out AI-driven tools on their websites (e.g., plan benefits sites) to help participants and beneficiaries locate providers, estimate costs, and better understand their cov” MORE >>
Source: Thompson Hine (ERISA Litigation & Compliance)
[Health & Welfare Plans]
Legal Challenges, Federal Reforms Affecting State PBM Laws Increase Plan Sponsor Responsibilities“While multiple states have passed laws that regulate and reform policies of pharmacy benefit managers (PBMs), these laws have faced a recent deluge of legal challenges in federal court by industry groups and some plan sponsors. At the same time, Congress has imposed new transparency requirements that affect the compliance duties of sponsors of Employee Retirement Income Security Act (ERISA)-covered group health plans. These developments have led to differing rules for plan sponsors to follow depending on the jurisdiction and the type of law involved.” MORE >>
Source: Hall Benefits Law
“There's a 16-point perception gap between employers and employees on financial well-being, revealed a new study from Bank of America, with employers far more likely to believe their workforce is financially secure than workers themselves. The banking giant's 2026 Workplace Benefits Report found that 71% of employers view their workforce's financial well-being as good or excellent, while only 55% of employees share that assessment. Despite the disconnect, the report found that employees' overall sense of financial well-being has reached a four-year high, rising 11 percentage points since 2023.” MORE >>
Source: Employee Benefit News
Health & Welfare Plans
1 item"Under Section 125 cafeteria plan rules, mid-year health plan changes, including new options, significant improvements or curtailments, can create mini open enrollment events for eligible employees." MORE >>
Source: WTW
Regulatory Action and Guidance
1 item“Under the ACA, employer-sponsored minimum essential coverage (MEC) is affordable if an employee’s required contribution for the lowest-cost, self-only option with minimum value does not exceed an annually indexed percentage of the employee’s household income.” MORE >>
Source: Mercer