The Daily Brief for Benefits Professionals
BenefitsWire
Health & Welfare Plans
August 26, 2026
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6 items · ~2 min read
Top of the Brief
Employer Healthcare Costs to Surge in 2027 Due to Catastrophic Claims, Specialty Drugs“Recent projections for 2027 increases range from 9.2% to 11% without plan-design changes.”
In this issue
Regulatory Action and Guidance (1) · Health & Welfare Plans (3) · Litigation (1) · General Benefits (1)
Regulatory Action and Guidance
1 item“Plans and insurers must provide additional information when issuing an initial payment or notice of denial for claims potentially subject to the No Surprises Act. The disclosures will include: Plans and insurers also must use designated Claim Adjustment Reason Codes and Remittance Advice Remark Codes when communicating with out-of-network providers. These codes will indicate whether the claim is subject to the No Surprises Act and whether the federal IDR process is available.” MORE >>
Source: National Law Review
Health & Welfare Plans
3 items“According to the Plan Sponsor Council of America’s 2026 Health Savings Account Survey, some 83% of eligible U.S. employees contributed to their HSA accounts in 2025, a significant increase from the 73% participation rate measured in 2024’s survey. While that jump indicates workers see the value of HSAs in mitigating their ever-increasing healthcare costs, the PSCA says only a quarter of employers have worked to actively position their on-site HSA programs as part of a unified retirement savings plan. “Health Savings Accounts are evolving from a healthcare spending vehicle into an important financial wellness and long-term retirement strategy,” says Hattie Greenan, PSCA’s Director of Research” MORE >>
Source: 401(k) Specialist
“Recent projections for 2027 increases range from 9.2% to 11% without plan-design changes.” MORE >>
Source: PLANSPONSOR
“As healthcare costs rise, almost half of U.S. employers with 500 or more employees said they will be shifting their 2027 plan offerings so that workers will be responsible for more costs, according to a recent report from Mercer. At the same time, 83% of employers said increased healthcare costs will force them to make tradeoffs with wage and salary increases, according to a survey conducted by the National Alliance of Healthcare Purchaser Coalitions.” MORE >>
Source: HR Dive
Litigation
1 item“In its amicus brief, ERIC argued that the plaintiffs’ interpretation of ERISA conflicts with Congress’ intent to encourage employer wellness programs and could expose plan sponsors to significant liability. The organization asserted that a 2013 federal regulation requiring broader alternatives to wellness programs conflicts with the statute’s plain language and should not control the outcome. ERIC also warned that allowing the claims to proceed could expand employer liability, undermine wellness program incentives and increase costs across employer-sponsored health plans.” MORE >>
Source: PLANADVISER
General Benefits
1 item“Ahead of the impending school year, 87% of working parents wanted more flexibility from their employers, according to a recent survey from workforce solutions platform Dexian. Out of nearly 500 working mothers and fathers, 56% were looking for flexible working hours or schedules and 31% wanted hybrid or remote options. But addressing or granting requests could quickly escalate into tricky compliance issues for leaders if they don't have the right policies in place, said Jared Pope, a benefits and employment law attorney and the CEO of third-party workplace misconduct management and compliance company Work Shield.” MORE >>
Source: Employee Benefit News
Also of Note
- EU Pay Transparency Directive Update: Legislative Progress in Spain and Portugal — “In Portugal, employers must display in customary locations, or on their intranet, the criteria used to determine pay, pay levels, and pay progression.” (Ogletree Deakins)
- Cal. Appellate Court Rejects Implied Cap on ‘Usual’ Emotional Damages — “Quick Hits In Glick v.” (currentfederaltaxdevelopments.com)
- Germany: Fixed-Term Employment Without Objective Grounds for Up to Four Years? What the Proposed Reform Means for Employers — “ASAP By Johanna Kreienkamp and Alke Helene Sundermann In early July 2026, the German Coalition Committee of the CDU/CSU (conservative political party union) and SPD (social democratic political party) announced a significant expansion of fixed-term employment without objective grounds (i.” (Littler)
- Update - New Jersey Department of Labor Issues New Guidance on Recent Amendments to Temporary Disability and Family Leave Insurance — “Since these amendments became effective on July 17, 2026, the New Jersey Department of Labor has published new guidance on its website and via “Frequently Asked Questions.” (National Law Review)
- EFAA covers claims that emerge during an arbitration proceeding, 9th Circuit says — “The parties in the case conducted arbitration proceedings for a full year — but that fact alone can’t prevent plaintiffs from seeking arbitration exemption, the court held.” (HR Dive)
- Sexual Harassment in the Workplace — “External Publication Lisa Collins outlines employers’ obligations under Irish law for handling sexual harassment in the workplace, the potential consequences of noncompliance, and the practical steps organisations should take to prevent and address it.” (Littler)
- San Francisco Amends its Fair Chance Ordinance — “On July 10, 2026, the San Francisco Board of Supervisors amended the Fair Chance Ordinance (FCO), placing additional restrictions and requirements on employers who make employment decisions based on criminal history (the “Amendment”).” (National Law Review)
- Q&A: BMO's Melissa Dal Vecchio outlines 3 key benefit trends — “I would identify three major trends shaping the HR and benefits landscape today: rising healthcare costs, increasing demand for personalized employee experiences, and a growing focus on benefits literacy.” (Employee Benefit News)
- The benefits that make office life more enticing — “Key insight: Here's why Verkada's VP of people designs lifestyle benefits around in-office attendance.” (Employee Benefit News)
- International Drug Scheduling; Single Convention on Narcotic Drugs; Convention on Psychotropic Substances; Clobromazolam (Phenazolam); Cychlorphine (N-Propionitrile Chlorphine); Desalkylgidazepam (Bromonordiazepam); Ethylbromazolam; Etomethazene (5-Methyl Etodesnitazene); Spirochlorphine (R6980); Etomidate; Medetomidine; Request for Comments — “The FDA is seeking comments on the abuse potential and medical usefulness of eight drug substances to inform U.” (Federal Register)
- San Francisco contractor-lessee health plan standards, pay rates updated — “August 10, 2026 Many San Francisco contractors and lessees (and their subcontractors and subtenants) must provide covered employees with health coverage meeting minimum standards or make an alternative payment under the Health Care Accountability Ordinance (HCAO) as part of their contract or lease arrangement.” (Mercer)