Massachusetts has passed a new state law that requires pharmacy benefit managers (PBMs) to get a license from the Massachusetts Division of Insurance no later than January 1, 2026. Initial PBM licenses are good for three years and are renewable in subsequent three-year increments. Both initial and renewal licenses come with a $25,000 fee. The new state law also establishes significant penalties for PBMs in certain Read More

On January 3rd, Congress passed two bills that decrease the amount of reporting that employers and insurers must complete under the Affordable Care Act (ACA). The Paperwork Burden Reduction Act and the Employer Reporting Improvement Act, which the President signed into law, change employer and insurer notices to individuals required by the ACA. Under the ACA, employers and insurers who provide minimum essential Read More

The U.S. Department of Labor (DOL) has issued the Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2025. As per 2016 legislation, DOL must make certain adjustments to some civil penalty amounts no later than January 15th of each year. The penalty amounts apply to various benefit plan compliance failures and represent maximum penalty amounts. As a result, the DOL can issue lower penalties for Read More

Like many other employers, Amazon is now facing a class action lawsuit by its retirement plan participants over their disposition of forfeited 401(k) plan contributions. In their suit, the plaintiffs allege that Amazon used forfeited retirement funds to offset company contributions to the plan rather than to benefit participants by reducing plan fees. Other companies, such as Bank of America and Wells Fargo, have Read More

The U.S. Supreme Court recently held arguments in U.S. v. Skrmetti, which addresses the legality of Tennessee and Kentucky state laws banning gender-affirming care for minors. If the Court upholds the law as expected, some employers may consider providing travel benefits to allow employees and their dependents to seek types of  healthcare prohibited by state law. Employers also could offer such benefits when covered Read More

The U.S. Department of Labor (DOL) has officially launched its Retirement Savings Lost and Found database. Although the database is not complete, DOL will continue to make improvements over the next several months. DOL needs ongoing assistance and participation from plan administrators to get information on plan participants who have left their places of employment. While submission of this information by plan Read More

A Gallup poll from early November reveals that 62% of Americans believe the federal government should ensure all Americans have healthcare coverage. Historically, support for federal provision of healthcare has wavered, with high numbers of support in the early 2000s and much lower numbers during the Obama administration, which oversaw the passage of the Affordable Care Act (ACA). However, over the last decade, as Read More

Federal lawmakers have successfully passed the Social Security Fairness Act, which is now headed to President Joe Biden for his expected signature. The Act eliminates two provisions—the Windfall Elimination Provision and the Government Pension Offset—that prevent nearly three million people from collecting their full Social Security benefits. Previously, police officers, firefighters, teachers, and other public Read More

Many of the requirements for employers under the SECURE 2.0 Act, which Congress passed in 2022, already have gone into effect. However, some of the major requirements of SECURE 2.0 took effect on January 1, 2025. Specifically, covered employers must automatically enroll employees into new retirement plans, contributing at least three percent of their salary. Individuals will have access to higher-catch-up Read More

Traditionally, enrollment in high-deductible health plans (HDHPs) by individuals under 65 has been higher when purchased directly than when provided through an employer. However, a recent National Health Statistics Report, which examined HDHP enrollment rates between 2021 and 2023, found that HDHP enrollment did not differ significantly between directly purchased and employment-based coverage. Other studies show that Read More