HEALTH AND WELFARE PLAN UPDATES
U.S. Supreme Court Upholds Ban On Gender Affirming Care for Minors
On June 18, 2025, the Supreme Court held in United States v Skrmetti that Tennessee's ban on gender affirming care for minors does not violate the Constitution. The Court found that the law's exclusions were based on age and medical condition rather than sex. This decision is likely to have significant consequences, as 27 states have enacted some form of restrictions on gender affirming care for minors. While it is uncertain what impact these restrictions will have on the ability of employee benefit plans to continue to offer gender dysphoria coverage to minors, it is possible that plan sponsors and their plans offering such benefits may be targeted for aiding a crime under some state restrictions.
U.S. Supreme Court Upholds ACA's Preventive Services Mandate
The Supreme Court, in Kennedy v. Braidwood Management, Inc., upheld the authority of the U.S. Preventive Services Task Force (Task Force) against a challenge under the Appointments Clause of the Constitution. The Court determined that the Task Force members are inferior officers whom the Secretary of the U.S. Department of Health and Human Services (HHS) may appoint. Accordingly, the Task Force may continue recommending preventive services and non-grandfathered health plans under the Affordable Care Act (ACA) must continue to cover, without cost sharing, all items or services that receive an "A" or "B" rating. While the Court upheld the Task Force's authority, it also confirmed that Task Force members are removable at will and their recommendations are subject to final review and approval by the Secretary of HHS.
Federal Court Strikes Down HIPAA Reproductive Health Care Rule
On June 18, 2025, the U.S. District Court for the Northern District of Texas vacated the 2024 reproductive health care amendments to the Privacy Rule under the Health Insurance Portability and Accountability Act (HIPAA). The 2024 amendments had prohibited covered entities and business associates from using or disclosing an individual's protected health information (PHI) dealing with their reproductive health care in certain circumstances. In Purl v. United States Department of Health and Human Services, the district court found the provisions unlawful because HHS exceeded its statutory authority under the Administrative Procedure Act. As a result, covered entities no longer need to obtain an attestation before disclosing reproductive health care PHI, or to update their Notice of Privacy Practices for reproductive health care. However, covered entities still need to comply with the separate 2024 Privacy Rule changes related to substance use disorder treatment information, which also require updates to the Notice of Privacy Practices.
Fifth Circuit Rules Air Ambulance Providers Lack ERISA Standing
The U.S. Court of Appeals for the Fifth Circuit, in Guardian Flight, L.L.C. v. Health Care Serv. Corp., affirmed that health care providers do not have a private right of action to enforce payment awards resulting from surprise billing disputes. Under the No Surprises Act, health care providers and health plans may resolve disputes over surprise "balance bills" in an independent dispute resolution (IDR) process. The appeals court found that the health care providers lacked standing as the assignees of plan participants under the Employee Retirement Income Security Act of 1974 (ERISA) because the participants, protected by the No Surprises Act from balance bills for the disputed claims, had no concrete injury. However, a parallel case, Guardian Flight LLC v. Aetna Life Co. in the U.S. District Court for the District of Connecticut, could lead to a circuit split if the district court or its court of appeals come to an opposite decision.
U.S. Supreme Court Rejects Review of Oklahoma Law Regulating PBMs
On June 30, 2025, the Supreme Court refused to review the pharmacy benefit manager (PBM) case, Mulready v. Pharmacy Care Management Association. This lets stand the 2023 ruling by the U.S. Court of Appeals for the Tenth Circuit, which found that ERISA and the Medicare Part D program preempt four provisions of the Oklahoma law. The Oklahoma law, Patient's Right to Pharmacy Choice Act, is intended to protect access to pharmacies and define compliance standards for retail pharmacy networks. For additional detail, see the Spotlight on State PBM Regulation Uncertainty.
RETIREMENT PLAN UPDATES
SEC Withdraws Proposed Rules Impacting Registered Investment Advisers, Private Funds, and Their Advisers
On June 12, 2025, the U.S. Securities and Exchange Commission (SEC) withdrew 14 proposed regulations issued during the Biden Administration. Among the withdrawn rules are regulations that would have increased or modified the compliance requirements of private funds and their investment advisers, and registered investment advisers. Specifically, the withdrawn proposed rules related to use of predictive data analytics; safeguarding advisory client assets' cybersecurity risk management; environmental, social and governance investment practices disclosures; third party outsourcing; and regulation best execution.
Department of Labor Proposes to Rescind Annuity Selection Safe Harbor
On July 1, 2025, the U.S. Department of Labor (DOL) published a final rule that removes a fiduciary safe harbor regarding the selection of annuity providers for the purpose of benefit distributions from individual account retirement plans. Originally published in 2008, the safe harbor became unnecessary in 2019 when Congress amended ERISA to add a more streamlined fiduciary safe harbor generally covering the same activity. Unless the DOL receives significant adverse comments, the final rule will take effect on September 6, 2025.
District Court Dismisses ERISA Forfeiture Claim with Prejudice
On June 13, 2025, the U.S. District Court for the Central District of California, in Wright v. JPMorgan Chase, dismissed a claim that retirement plan fiduciaries violated ERISA by using plan forfeitures to reduce employer contributions, rather than plan expenses. The court observed that JPMorgan Chase's plan document actually precluded the fiduciaries from reducing plan expenses attributable to participants. Instead, the plan document only allowed for plan forfeitures to reduce JPMorgan Chase's share of plan expenses. Accordingly, the court ruled that the JPMorgan Chase fiduciaries properly followed the plan's procedures and dismissed the plaintiff's claims with prejudice.
GENERAL UPDATES
Congress Passes the One Big Beautiful Bill Act
On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. Under the OBBBA, plan sponsors have new benefit options available with respect to health savings accounts (HSAs), dependent care flexible spending accounts (FSAs), student loan repayment assistance and "Trump Accounts." For additional detail, see our article: The One Big Beautiful Bill Act Analysis Series: New Options for Employee Benefit Plan Sponsors.
Department of Labor Expands Opinion Letter Program
On June 2, 2025, the DOL relaunched and significantly expanded its opinion letter program across five enforcement agencies, including the Employee Benefits Security Administration (EBSA). A DOL opinion letter is an official, written response from the DOL to a specific, fact based inquiry, submitted by an employer, plan sponsor, legal counsel or another stakeholder. The DOL applies the relevant law to the presented scenario and issues a public letter detailing how it would interpret and enforce the law in that context. While not legally binding for third parties, the opinion letters provide helpful guidance on how the DOL applies the law to the circumstances at hand.
COMPLIANCE DEADLINES AND REMINDERS
All Benefit Plans
Summary Annual Report. Plan administrators whose plans must provide summary annual reports generally must distribute them within nine months after the plan's year end (e.g., for plan years that ended December 31, 2024, the deadline is September 30, 2025). However, if a plan has received an extension for filing its Form 5500, the nine‑month deadline is extended by two months.
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