In this episode of Employee Benefits and Executive Compensation: Preparing for 2027, Troutman Pepper Locke attorneys Lynne Wakefield and Heather Heath Ryan explore the rapidly evolving health and welfare plan landscape and what plan sponsors and fiduciaries need to consider heading into 2027. The discussion opens with a foundational overview of health and welfare plan governance and fiduciary best practices, including the critical distinction between settlor and fiduciary functions, and explains why robust governance structures are increasingly essential in today’s legal and regulatory environment.
From there, Heather and Lynne turn to the key developments driving risk and change for plan sponsors, including the surge in breach of fiduciary duty litigation involving prescription benefit managers (PBMs), voluntary benefits, and tobacco surcharges; new CAA 2026 disclosure and reporting requirements for group health plan service providers; proposed DOL regulations expanding PBM fee transparency; recent guidance on fertility benefits; anticipated guidance on mental health parity (MHPAEA) and overfunded VEBAs; and considerations related to GLP-1 coverage. Whether you are evaluating your PBM contracts, reviewing your voluntary benefits offerings, or building out your health and welfare plan committee structure, this episode offers practical insights to help your organization manage risk and prepare for the year ahead.
Listeners can find updates on Trump accounts, executive compensation, and retirement plans in other episodes in the series.