The Internal Revenue Service (IRS) issued Notice 2025-40, providing updated static mortality tables for defined benefit pension plans under Code Section 430(h)(3)(A) and Section 303(h)(3)(A) of the Employee Retirement Income Security Act. These updated static mortality tables apply for purposes of calculating the funding target and other items for valuation dates occurring during the 2026 calendar year.
On August 7, 2025, President Trump issued an executive order titled “Democratizing Access to Alternative Assets for 401(k) Investors.” The order seeks to expand access to alternative investments in retirement plans, aiming to diversify investment options for plan participants.
When tennis superstar Venus Williams recently spoke about returning to the sport to maintain her health insurance, it highlighted a broader issue many employees face: navigating complex benefits after leaving their jobs. This challenge is particularly acute when it comes to Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage, which allows former employees to temporarily keep their employer-sponsored health insurance. As Sarah Raaii points out, the high cost of COBRA and limited alternatives create significant financial strain. To address this, employers could provide clearer information about COBRA, its costs, and available alternatives, enabling employees to make more informed decisions about their health coverage during career transitions.
Read more about how employers can help employees navigate COBRA.
Mississippi has enacted SB 2415, ensuring that health insurance and employee benefit plans cover telemedicine services to the same extent as in-person medical consultations. The legislation specifies that all telemedicine must be real-time audio-visual unless using store-and-forward technology or remote patient monitoring.
Read more about state legislative and regulatory developments impacting virtual care here.
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.
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.
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.
The One Big Beautiful Bill Act permanently extends the telehealth safe harbor for high-deductible health plans (HDHPs) for plan years beginning after December 31, 2024. This extension allows HDHPs to cover telehealth and remote care services at low or no cost, expanding access for millions of participants and encouraging digital health providers, insurers, and employers to reassess and update their offerings to meet the growing demand.
Learn more about the telehealth HDHP safe harbor extension here.
In this edition of Health Policy Breakroom, Sarah Raaii and Rachel Stauffer join Julia Grabo to explore a crucial virtual care provision from the recently enacted One Big Beautiful Bill Act, exploring its effects on patients, employers, and the broader landscape of virtual care policy.
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.
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