On September 11, 2025, the U.S. Department of Health and Human Services Office of Inspector General (the OIG) issued a favorable advisory opinion (AO 25-10 or the Opinion) regarding an arrangement between a healthcare services company (the Company) and a charitable foundation (the Foundation), whereby the Company makes financial contributions to the Foundation, which then provides grants to families of children receiving a particular type of therapy (the Arrangement). Pursuant to AO 25-10, the OIG will not impose sanctions with respect to the Arrangement, despite the Arrangement potentially generating prohibited remuneration under the federal Anti-Kickback Statute (the AKS) and implicating the civil monetary penalty provision prohibiting inducements to beneficiaries (the Beneficiary Inducements CMP).

July was an exciting month for employer-sponsored health and welfare benefits. Many of the changes discussed provide plan sponsors with increased flexibility to optimize benefits.

On June 11, 2025, Assistant Attorney General Brett Shumate issued a memorandum to all U.S. Department of Justice Civil Division employees outlining enforcement priorities under directives from President Trump and Attorney General Bondi. The Memorandum signals a shift in federal enforcement focus to issues such as discrimination, gender transition care, and immigration, and identifies the False Claims Act as a tool to achieve certain of the Administration’s goals.