The Weekly Highlights for Benefits Professionals
BenefitsWire
Health & Welfare Plans
Week of August 28, 2026
— § —
12 items · ~4 min read
In this issue
Regulatory Action and Guidance (10) · Health & Welfare Plans (2)
Regulatory Action and Guidance
10 items“The Section 503 final rule makes significant changes, most notably rescinding the requirement that contractors affirmatively invite applicants and employees to voluntarily self-identify a current or former disability (using the CC-305 form), eliminating the 7 percent utilization goal for individuals with disabilities, and removing data collection and utilization analysis requirements. The rule also updates the basic coverage threshold from $15,000 to $20,000 to reflect recent inflationary adjustments. Despite the many rescissions, the rule retains Section 503’s core disability nondiscrimination protections, reasonable accommodation requirements, outreach assessment obligations, and AAP requi” MORE >>
Source: Ogletree Deakins
“In the FAQs, the Departments announced that they will not take enforcement action against a plan or issuer that provides a health-contingent wellness program reward only on a prospective basis—that is, from the date a participant satisfies a reasonable alternative standard—rather than retroactively to the first day of the plan year. The Departments also clarified the types of information that employers must disclose about a wellness program.” MORE >>
Source: Groom Law Group
“Contributions of up to $5,000 per year (indexed for inflation after 2027) can be made to the Accounts. Employers can contribute up to $2,500 (indexed for inflation after 2027) per employee to the Accounts of employees or their dependents. The federal government will provide a $1,000 seed contribution for eligible children born in 2025, 2026, 2027, and 2028. Many large companies and private donors have pledged to match the federal government’s seed contribution made to employees’ dependents’ Accounts or to make separate contributions to the Accounts.” MORE >>
Source: Boutwell Fay
“On August 21, 2026, OFCCP published in the Federal Register a final rule eliminating the collection of information on disability from applicants and employees, and retiring the Office of Management and Budget (OMB)-approved form (Form CC-305) that federal contractors were required to use to invite self-identification. In taking this action, OFCCP relied on its view that the Americans with Disabilities Act (ADA) bars employer inquiries into an applicant’s status as an individual with a disability without exception and very substantially limits inquiries into an employee’s status as an individual with a disability. The new final rule takes effect September 21, 2026. Barring congressional actio” MORE >>
Source: Littler
“MCC rules index the annual deductible to an annual OOPM adjustment in line with the ACA (42 USC § 18022). The US Department of Health and Human Services (HHS) annually announces the ACA adjustment well in advance of the upcoming year; HHS announced the 2027 adjustment and limits in January 2026. For 2027 plan years, Bulletin 01-26 keeps the maximum MCC deductibles at 2026 levels: The Health Connector will allow a plan sponsor or insurer to self-certify an HDHP if it meets one of the following standards: Individual policies sold on or off the Health Connector and certain publicly funded state and federal health plans also qualify as MCC, including: Employers may face a $50 penalty per individ” MORE >>
Source: Mercer
“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
“WASHINGTON, D.C. – Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement after the release of the July reading of the Personal Consumption Expenditures (PCE) price index, showing core inflation holding at 3.” MORE >>
Source: House Ways & Means Committee
“Private-sector employers covered by Title VII, the Age Discrimination in Employment Act (ADEA), and the Americans with Disabilities Act (ADA) should take note of the Equal Employment Opportunity Commission’s (EEOC) new National Enforcement Plan (NEP), which signals where the agency will focus its investigative and litigation resources through 2029, as well as the EEOC’s related actions to limit voluntary affirmative action plan safe harbors and EEO-1 data reporting requirements.” MORE >>
Source: Troutman Pepper Locke
“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
HRSA is seeking public comment on a revised Information Collection Request for its Faculty Loan Repayment Program, impacting program administration and data collection. MORE >>
Source: Federal Register
Health & Welfare Plans
2 items“Recent projections for 2027 increases range from 9.2% to 11% without plan-design changes.” MORE >>
Source: PLANSPONSOR
“For employer-sponsored health plans, prescription drugs may represent one of the most expensive, fastest-growing, and least transparent areas of benefit costs. Pharmacy benefit managers (PBMs) play a central role in administering pharmacy benefits; establishing retail, mail order, and specialty pharmacy networks; negotiating pharmacy reimbursement terms; remitting rebates from drug manufacturers; managing formularies; and processing claims. Given the complexity of managing these benefits, even well-run plans can face issues such as pricing discrepancies, operational errors, or contract terms that no longer reflect current market standards. PBM audits play an important part in minimizing thes” MORE >>
Source: Milliman