In July 2025, the IRS released new guidance increasing both the affordability percentage and penalty amounts under the Affordable Care Act’s employer mandate for the 2026 plan year. These changes will affect how Applicable Large Employers (ALEs) determine affordability and assess compliance risk moving into the next benefits cycle.
In May 2025, the Departments of Labor, Health and Human Services, and the Treasury announced a temporary pause in enforcement of the 2024 final rule under the Mental Health Parity and Addiction Equity Act (MHPAEA), following a legal challenge brought by an employer coalition. This enforcement pause gives the agencies time to reexamine certain provisions and consider future revisions through the regulatory process.
