Tobacco Surcharges: New Federal Guidance
New federal guidance issued August 26 provides employers with greater clarity around tobacco surcharge programs, particularly regarding retroactive refunds and participant disclosure requirements. While the guidance may provide additional protections for certain plan sponsors, litigation involving these programs continues. Employers with tobacco surcharges should review their plan documents, disclosures, and administration practices to ensure they remain aligned with current requirements and address potential areas of risk.
Back-to-School Savings: Make the Most of Your FSA and DCA
As families settle into new school-year routines, expenses such as childcare, after-school programs, prescriptions, and vision care can add up. Flexible Spending Accounts (FSAs) and Dependent Care Accounts (DCAs) may help employees manage eligible expenses throughout the year. Employers can encourage employees to review their benefits, understand eligible expenses, and use their account portal to track balances, spending, and reimbursements.
IBX and Jefferson Health Contract Negotiations: What Employers Should Know
Independence Blue Cross is currently negotiating a new agreement with Jefferson Health, whose existing contract is set to expire December 31, 2026. For now, Jefferson Health remains in-network, and members can continue receiving in-network care through the end of the year. No action is required at this time. IBX will provide updates if negotiations result in changes to network access or member benefits.
Cigna Healthcare Announces January 2027 Formulary Updates
Cigna Healthcare is preparing several formulary changes effective January 1, 2027, focused on managing prescription drug costs and improving pharmacy plan performance. Updates include promoting lower-cost medication options, removing certain high-cost drugs, and adjusting quantity limits. Employers with members affected by these changes will receive notifications beginning in late September, with additional reminders scheduled for November and January.
ICHRAs Get a New Name: Introducing CHOICE Arrangements
CMS and the SBA announced that Individual Coverage Health Reimbursement Arrangements (ICHRAs) will now be referred to as CHOICE Arrangements, short for “custom health option and individual care expense.” The name change does not alter the existing rules or compliance requirements for ICHRAs. Employers considering this approach should continue to evaluate eligibility, affordability, plan design, and ACA requirements before implementation.
Compliance Corner! DOL Issues New Guidance on Wellness Programs
Federal agencies recently issued new guidance clarifying requirements for health-contingent wellness programs, including tobacco cessation programs and reasonable alternative standards (RAS). The guidance provides enforcement relief for certain plans that apply wellness rewards prospectively after an employee satisfies an RAS, rather than retroactively. Employers should review wellness program notices, tobacco surcharge provisions, and participant communications to ensure required disclosures and alternative standards are properly addressed.
To learn more, click here: FAQs about Affordable Care Act and Health Insurance Portability and Accountability Act Implementation Part 74