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August 26, 2026Health & Welfare

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
No Surprises Act Enters a New Phase: What Employers and Group Health Plans Need to Know About the 2026 IDR Rules

“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
HSA Participation Hits Record Level Among American Employees

“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

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.” MORE >>

Source: PLANSPONSOR

Healthcare costs could rise by nearly 10% in 2027

“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
ERIC Urges Appeals Court to Uphold Dismissal favoring Progressive in Surcharge Case

“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
The compliance risks to watch out for this back-to-school season

“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

BenefitsWire · A digest for ERISA attorneys, third-party administrators, actuaries, recordkeepers, and benefits consultants.
An informational digest, not legal advice.
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