Employee Benefits Archives - EMPLOYEE BENEFITS BLOG

IRS reminds businesses about the Childcare Tax Credit

by Evan Walters, Samuel Hamer, Edward Froelich, Michael Scarduzio and Matthew J. Blaney | Jul 10, 2025 | Employee Benefits

The Internal Revenue Service (IRS) recently released Tax Tip 2025-39, reminding businesses about the Childcare Tax Credit. Taxpayers may receive a credit of up to $150,000 per year to offset 10% of qualified childcare resource and referral costs and 25% of qualified childcare facility costs. To be eligible for the credit, an employer must have paid or incurred qualified childcare costs during the tax year to provide childcare services to employees.

Learn more about other new IRS guidance in this IRS roundup.

Unpacking health insurers’ prior authorization announcement

by Jeffrey Davis and Lynn Nonnemaker | Jul 8, 2025 | Employee Benefits, Health and Welfare Plans

Health insurers recently announced steps to improve the prior authorization process, a move that was praised by US Department of Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz. This initiative responds to longstanding complaints from patients and providers about the complexity and burden of prior authorization, which often leads to denied coverage for necessary care. While CMS and HHS have already implemented regulations to address these issues, the question remains whether the new industry commitments add anything beyond what is already required.

Read more here.

FAQs regarding the Skrmetti decision for healthcare entities and payors

by Gregory Fosheim, Travis Jackson, Kristen O'Brien, Sarah Raaii and Alden Bianchi | Jul 1, 2025 | Employee Benefits, Health and Welfare Plans

On June 18, 2025, the Supreme Court of the United States ruled in United States v. Skrmetti, upholding Tennessee’s SB1 law that limits access to gender-affirming care for minors. The court’s 6-3 decision, written by Chief Justice John Roberts, deemed the law constitutional under a rational basis review, determining it classifies based on age and medical use rather than sex or transgender status.

These FAQs highlight key implications for healthcare providers, hospitals, health systems, health plans, and employer plan sponsors navigating the ruling’s consequences.

Download the FAQs.

Managing ESOP distribution and diversification obligations

by Allison Wilkerson and Myriem Bennani | Jun 24, 2025 | Employee Benefits, Employee Stock Ownership Plans (ESOPs)

On June 3, 2025, Allison Wilkerson and Myriem Bennani participated in a webinar hosted by the National Center for Employee Ownership (NCEO). They discussed proactive strategies for managing ESOP distribution and diversification obligations, including legal requirements, planning opportunities with “administrative loans,” and methods to meet benefit level goals, offering valuable insights for companies navigating ESOP administration.

Access the webinar recording.

Vermont Enacts New Telehealth Legislation Impacting Health Insurers

by Amanda Enyeart and Alan LeBlang | Jun 18, 2025 | Digital Health, Employee Benefits, Health and Welfare Plans

Vermont’s governor recently signed S 30 into law. The legislation, which goes into effect on September 1, 2025, requires that health insurance plans provide coverage for healthcare and dental services delivered through telemedicine to the same extent as if the services were provided through in-person consultations. Health insurance plans must also provide the same reimbursement rate for services billed using equivalent procedure codes and modifiers, subject to the terms of the health insurance plan and provider contract, regardless of whether the service was provided in person or through telemedicine.

For more updates on state legislative and regulatory developments related to telehealth, check out the latest Trending in Telehealth published by the Health & Life Sciences Group.

Health Plan Provisions in the House Reconciliation Package

by Kayla Holgash, Maddie News, Debra Curtis, Rodney Whitlock, Amy Kelbick, Leigh Feldman, Josh Jorgensen and Julia Grabo | Jun 17, 2025 | Employee Benefits, Health and Welfare Plans

On May 22, 2025, the US House of Representatives passed its reconciliation package, now known as H.R.1, One Big Beautiful Bill Act, by a 215 – 214 – 1 vote, advancing an agenda that extends and builds on tax cuts enacted in President Trump’s first term. The bill contains several policies impacting group health insurance plans, health savings accounts, and employer tax credits for paid family and medical leave.

Read more about these proposed policy changes and others in this comprehensive report, which highlights the health-related provisions in the House reconciliation package.

IRS Releases 2026 Limits for HSAs and Excepted Benefit HRAs

by Evan Walters, Samuel Hamer, Edward Froelich, Michael Scarduzio and Matthew J. Blaney | Jun 10, 2025 | Employee Benefits, Health and Welfare Plans

On May 19, 2025, the Internal Revenue Service (IRS) released Internal Revenue Bulletin 2025-21. It includes Revenue Procedure 2025-19, which provides the 2026 inflation-adjusted amounts for health savings accounts (HSAs) as determined under Code § 223, as well as the maximum amount that may be made newly available for excepted benefit health reimbursement arrangements (HRAs) under Code § 54.9831-1(c)(3)(viii). Revenue Procedure 2025-19 is effective for HSAs for the 2026 calendar year and for excepted benefit HRAs beginning in 2026.

Learn more about other new IRS guidance in this Weekly IRS Roundup published by McDermott’s Tax Group.

Trump Administration Takes Steps to Enhance Healthcare Price Transparency

by Jeffrey Davis and Leigh Feldman | Jun 5, 2025 | Employee Benefits, Health and Welfare Plans

In May, the Trump administration issued guidance and requests for information (RFIs) to enhance healthcare price transparency, focusing on both hospitals and health plans. For hospitals, the guidance reiterates the need to provide actual dollar amounts for payer-specific negotiated charges in machine-readable files (MRFs) rather than percentages, and it seeks input on improving the accuracy and completeness of MRF data. For health plans, the RFI addresses concerns about file size and data integrity, and it explores the implementation of net prices for covered prescription drugs, indicating that the administration plans to issue revised schemas and may pursue further transparency rulemaking.

Read more here.

One Big Beautiful Bill Act Has Compensation & Benefits Impacts for Nonprofit Health Systems

by Travis Jackson, Robert C. Louthian, III and Kristen O'Brien | Jun 3, 2025 | Employee Benefits, Executive Compensation, Health and Welfare Plans

The US House of Representatives passed its One Big Beautiful Bill Act on May 22, 2025 (the Act), but nonprofit health systems may not find much about the Act that’s attractive. If passed by the US Senate and signed into law, the Act would threaten already thin operating margins at nonprofit hospitals and health systems by expanding the executive compensation excise tax, taxing parking, and similar employee benefits.

Read more here.

“Big, Beautiful Bill”: Federal Tax Bill Would Restrict the Employee Retention Credit

by Shawn O’Brien, Samuel Hamer and Michael Scarduzio | May 27, 2025 | Employee Benefits, Fiduciary and Investment Issues

A new federal tax bill under consideration in the US House of Representatives proposes major changes to the Employee Retention Credit (ERC), including disallowing claims made after January 31, 2024 – even if they were filed before the official deadlines in April 2024 and 2025. It would also extend the Internal Revenue Service’s statute of limitations for assessing ERC-related amounts to six years, raising uncertainty for taxpayers with pending or previously approved claims.

Read more here.

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