What plan sponsors must know about gag clauses in contracts

The “gag clause prohibition” rules prevent group health plans and insurers from entering contracts that restrict their ability to access or share provider-specific cost and quality-of-care information with participants, plan sponsors, or other authorized parties. These clauses are most commonly found lurking in agreements with third-party administrators and pharmacy benefit managers, where they can include provisions that prevent disclosure of lower-priced medication alternatives or impose confidentiality requirements around negotiated rates.

In this PLANSPONSOR article, Alden Bianchi and his co-panelists (Jamie Greenleaf, Julie Selesnick, and Rory Akers) break down the critical compliance requirements plan sponsors face.




IRS announces 2026 employee benefit plan limits

The Internal Revenue Service has announced the cost-of-living adjustments to the applicable dollar limits for various employer-sponsored retirement and welfare plans for 2026. Most of the dollar limits that are subject to adjustment for cost-of-living increases will increase for 2026. The Social Security Administration released separately the maximum amount of earnings subject to the Social Security Tax.

See the 2026 employee benefit plan limits here.




Compensation considerations for health system innovation activities

This special series of the Governing Health podcast, presented in collaboration with SullivanCotter, explores key developments and provides guidance for boards’ executive compensation committees as they navigate complex operational, technical, and strategic challenges. In this episode, Michael Peregrine, Kerrin Slattery, and Jeff Holdvogt examine why innovative compensation incentives have become a pressing topic for health systems and their compensation committees.

Access the episode here.




IRS issues FAQs addressing Employee Retention Credits under OBBBA

The Internal Revenue Service (IRS) recently issued frequently asked questions (FAQs) addressing Employee Retention Credits (ERC) under the ERC compliance provisions of the One Big Beautiful Bill Act (OBBBA). Although not final guidance, “a taxpayer who reasonably and in good faith relies on these FAQs will not be subject to a penalty that provides a reasonable cause standard for relief, including a negligence penalty or other accuracy-related penalty, to the extent that reliance results in an underpayment of tax.”

Read more about recent IRS guidance and relevant tax matters in McDermott Will & Schulte’s latest IRS roundup.




EEOC enforcement actions underscore employers’ religious accommodation policies

On August 22, 2025, the US Equal Employment Opportunity Commission (EEOC) published a press release demonstrating its enhanced efforts to protect religious freedom in the workplace. These initiatives include investigating more than 10,000 charges challenging COVID-19 vaccine mandates and pursuing charges and lawsuits involving religious accommodation and antisemitism claims.

Learn more about the EEOC’s actions here.




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