Other Benefits Developments

Prescription drug costs remain one of the biggest challenges for both employers and employees. The executive orders call for greater transparency and accountability in drug pricing. For plan sponsors, this is a reminder to regularly review plan design, negotiate with vendors, and explore tools that can help employees access medications at lower costs. A proactive approach here not only protects your budget but also shows employees you’re invested in their well-being.

Pharmacy benefit managers (PBMs) are also under the microscope. Their practices often feel like a black box, and related executive orders highlight a push for clearer reporting and oversight. Plan sponsors may soon need to demonstrate they understand the cost structures behind their PBM contracts. Even before regulations arrive, it’s smart to ask tough questions now: how are rebates handled, where are savings going, and is the arrangement aligned with participants’ best interests?

Wellness programs are another area where employers should be paying attention. While many organizations already offer these programs, the spotlight is shifting toward initiatives that address total well-being—physical, financial, and mental health. For sponsors, this could mean re-evaluating existing offerings, from gym reimbursements to financial education workshops. The key is ensuring programs provide meaningful support to employees.

Reproductive health is also expected to remain at the forefront of public policy discussions. This is a sensitive area, but one where sponsors may soon find themselves navigating new compliance expectations. Staying informed, keeping open communication with providers, and being ready to adapt benefits offerings will be essential as the legal landscape evolves.

The common thread across these developments is anticipation. By starting conversations now—with your advisors, providers, and internal teams—you’ll be ready to pivot smoothly when changes arrive. Proactivity also builds trust. Employees notice when their employer takes steps to improve transparency, manage costs, and offer meaningful benefits. Staying ahead of the curve reinforces your role as a responsible sponsor and a supportive employer.

• Nixon Peabody LLP, “Executive orders: What employee benefit plan sponsors should know,” July 18, 2025.

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