The Daily Brief for Benefits Professionals
BenefitsWire
Health & Welfare Plans
August 27, 2026
— § —
14 items · ~5 min read
In this issue
Regulatory Action and Guidance (2) · Health & Welfare Plans (5) · Litigation (3) · General Benefits (3) · Webinars (1)
Regulatory Action and Guidance
2 items“Employers that provide a Dependent Care Assistance Program will be pleased to learn that for the first time in 45 years, the IRS has issued guidance on how to apply the nondiscrimination rules that apply to DCAPs.” MORE >>
Source: Verrill
“Recently proposed regulations from the Treasury Department and IRS offer employers a favorable interpretation when it comes to testing requirements for dependent care flexible spending arrangements (FSAs).” MORE >>
Source: Mercer
Health & Welfare Plans
5 items“Laws and pending legislation in some states restrict AI from providing or advertising itself as therapy, while others focus on data protections, disclosures, and requirements for patient consent. Concerns about AI chatbots providing wrong or potentially dangerous advice have prompted legislative activity in multiple states, following documented cases of chatbots responding inappropriately to mental health-related prompts and allegations that interactions with AI were a contributing factor in multiple suicides.” MORE >>
Source: KFF
“Employers are expecting a median 9.2% increase in medical spending next year, according to a new survey. But they’ve underestimated actual cost growth for the past three years. Healthcare spending isn’t just skyrocketing for U.S. companies. It’s also getting more difficult to predict, complicating efforts to keep cost growth in hand, according to new research. Employers are projecting a median 9.2% increase in health costs in 2027, as hospital prices rise, drugs get more expensive and workers and their families simply get sicker, the Business Group on Health, a nonprofit that represents employers on health benefits issues, found in its latest survey. Health cost growth is expected to dip to ” MORE >>
Source: Healthcare Dive
“Record healthcare costs are already here, and employers expect them to skyrocket even further due to the costs of catastrophic claims and specialty drugs, according to several recent reports.” MORE >>
Source: PLANADVISER
“The pace of Paid Family and Medical Leave (PFML) expansion has accelerated significantly in 2026, according to a recent whitepaper on the state of short-term disability from financial services company Voya, with more programs moving from collecting contributions to paying benefits to eligible employees on leave. While this is a meaningful step forward, federal and state policies are not always sufficient to meet employees' financial needs during periods of leave, providing employers with an opportunity to help bridge the gap.” MORE >>
Source: Employee Benefit News
[Regulatory Action and Guidance]
What’s Changing – and What Hasn’t Changed – on the ACA Marketplace? Part 3: Notice of Benefit and Payment Parameters for 2027 Final Rule - Kansas Health Institute“The Centers for Medicare & Medicaid Services, Department of Health and Human Services (CMS/HHS) issued the Notice of Benefit and Payment Parameters for 2027; Basic Health Program Final Rule on May 15, 2026. The final rule introduces changes to marketplace enrollment eligibility and advance premium tax credits (APTC), while also addressing several other marketplace-related provisions. This blog, the final installment in a series of three, examines changes finalized for plan year (PY) 2027 and beyond in the Notice of Benefit and Payment Parameters; Basic Health Plan for 2027 Final Rule.” MORE >>
Source: khi.org
Litigation
3 items“In Hudson Hospital OPCO, LLC v. Cigna Health and Life Insurance Company, No. 24-2830, 2026 WL 2511311 (3d Cir. Aug. 26, 2026), three New Jersey hospitals—Christ Hospital, Bayonne Medical Center, and Hoboken University Medical Center (the “Hospitals”)...The Hospitals asserted claims for failure to pay benefits due under the plans and for breach of ERISA fiduciary duties, along with several state-law claims. ... The Third Circuit affirmed in part, vacated in part, and remanded. ... The Hospitals therefore stated a claim for underpayment under the MRC-1 and MRC-2 plans. The court reached a different conclusion on the R&C plans. ... Finally, the court affirmed the dismissal of the fiduciary-duty” MORE >>
Source: Roberts Disability Law
[Health & Welfare Plans]
Pearson settles claims that workers with visual impairments couldn’t access training, benefits platforms“When an employer uses online systems for benefits, leave or training, accessibility cannot be an afterthought,” Kimberly Cruz, EEOC regional attorney, said in the press release. “Technology that shuts out employees with disabilities deprives them of equal opportunity both to succeed in the workplace and to access the benefits they have earned.” Compatibility or accessibility issues may arise where employees attempt to use screen-reading technologies to operate employers’ proprietary software, according to the Job Accommodation Network.” MORE >>
Source: HR Dive
“In Bennett v. Hartford Life and Accident Insurance Company, No. 25-CV-21039-RAR, 2026 WL 2450695 (S.D. Fla. Aug. 21, 2026), United States District Judge Rodolfo A. Ruiz II granted in part Plaintiff’s motion to transfer or, in the alternative, dismiss her ERISA long-term disability action, dismissing the case without prejudice on the condition that she pay Defendant’s costs if she refiles. ... Because Hartford is a nationwide insurer that does business in the Southern District of Florida, it can be found there, and venue was proper. ... The court also observed that an ERISA benefits action following an administrative appeal resembles record-based appellate review and dispositive motion practi” MORE >>
Source: Roberts Disability Law
General Benefits
3 items“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”). The Amendment took effect on August 10, 2026. The Amendment prohibits employers from taking adverse action based on out-of-state criminal history related to conduct that is lawful in California, including abortion-related health care, drag performances, gender-affirming care, and spontaneous abortion. The Amendment also requires employers to take additional steps prior to issuing adverse action based on criminal history and increases the administrative penalty ” MORE >>
Source: National Law Review
“Forgot Your Password? If you do not yet have an ERIC Online profile or user name and password, please create one using Create Profile Form. If you need assistance with your user name/password or profile, please contact ERIC at (202) 789-1400.” MORE >>
Source: ERIC
“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.” MORE >>
Source: Mercer
Webinars
1 item[Regulatory Action and Guidance]
[Webinar] Maryland FAMLI Program: What Employers Need to Know Now - September 9th, 11:00 am - 12:00 pm EST“Employers — If your business employs workers in Maryland, you will be impacted by the state’s paid Family and Medical Leave Insurance (FAMLI) program. Maryland’s Department of Labor (MDOL) has recently released finalized regulations, which may affect your business in the coming years with key dates set for this fall and contributions beginning January 1, 2027.” MORE >>
Source: JD Supra
Also of Note
- Seventh Circuit Holds ERISA Does Not Preempt Arkansas Rule 128’s Pharmacy Dispensing Fee Requirement or Its Incidental Reporting Requirement — “Arkansas Insurance Department Rule 128 protects pharmacies operating in Arkansas from being paid below “fair and reasonable” rates for dispensing medications.” (Roberts Disability Law)
- FTC Targets State Efforts to Prevent AI Discrimination in Health — “Some states wish to enact rules preventing discrimination by artificial intelligence (AI) systems in healthcare delivery and insurance underwriting.” (Hall Benefits Law)