The health benefits landscape is undergoing significant changes. Recent developments in policy and legislation are poised to reshape the economic environment, affecting employer plan sponsors, insurance providers, third-party administrators, and those enrolled in employer-sponsored health plans.
US healthcare offshoring: Navigating patient data privacy laws and regulations
US healthcare companies face challenges when offshoring due to stringent patient data privacy laws, including the Health Insurance Portability and Accountability Act and state-specific regulations that restrict data storage and access outside the United States. To mitigate risks, healthcare organizations should adopt best practices such as robust Business Associate Agreements and regular audits to ensure compliance with complex and evolving regulations.
Learn more about best practices for offshoring patient data here.
The Employee Retention Credit: A court challenge to IRS guidance
On June 20, 2025, the US District Court for the District of Arizona ruled that Internal Revenue Service (IRS) Notice 2021-20, challenged by a tax advisory firm, was an “interpretive rule” and did not violate the Administrative Procedure Act. Despite the IRS issuing $269 billion in Employee Retention Credits, more than 200,000 claims have been disallowed, and 592,000 remain pending. The court noted that the notice’s provisions are not binding, and taxpayers can still argue their eligibility based on specific circumstances, leaving room for future challenges.
Learn more about opportunities for employers and their tax advisers here.
OBBBA’s impact on employee benefit plans, programs, and arrangements
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. The OBBBA includes several employee benefits-related provisions impacting employer-sponsored plans and fringe benefits, including changes to health savings account eligibility, telehealth coverage, dependent care flexible spending accounts (FSAs), employer-provided childcare credits, student loan repayment programs, and more.
Learn more about the OBBBA’s employee benefits provisions here.
SEC hosts roundtable on executive compensation disclosure requirements
The US Securities and Exchange Commission recently hosted a roundtable to discuss potential updates to executive compensation disclosure requirements. The roundtable highlighted the need to reevaluate the current executive compensation disclosure framework due to complexity, costs, and potential distortion of corporate behavior. Participants debated the effectiveness of current disclosures, such as pay versus performance and CEO pay ratio, and the classification of personal executive security expenses as perquisites.
