Evolving Policy, Expanding Risk: What Your Business Needs to Know.

As legislation continues to evolve at both the federal and state levels, businesses—and their legal advisors—must remain nimble. Recent developments in Washington and across the country are setting the stage for significant regulatory, tax, and litigation implications.

Tax Law in the Spotlight: Energy Incentives and Medicaid Spending

At the federal level, proposed reforms tied to the extension of the 2017 tax cuts are sparking heated debates, particularly around tax incentives for nuclear energy and Medicaid funding. These proposed changes are not just theoretical—they carry real implications for energy companies and healthcare institutions navigating complex tax credit structures. With many Republican lawmakers resisting cuts to nuclear tax incentives due to their role in energy production and regional economies, there is potential for prolonged legislative battles and regulatory uncertainty. From a legal standpoint, businesses involved in the energy or healthcare sectors must evaluate how shifting federal tax policies could impact their long-term strategies and compliance obligations. Our tax law team is closely monitoring these changes to help clients proactively adapt their tax planning and risk management.

Paid Family Leave Proposals: Compliance and Coordination Challenges

Legislation to expand state-level paid family leave programs is gaining bipartisan traction, particularly through the proposed “More Paid Leave for More Americans Act.” While not a federal mandate, it aims to create a national coordination network to help states share data and streamline benefits—especially for workers crossing state lines. For companies operating in multiple jurisdictions, this could introduce new compliance challenges and potential litigation risks. Managing benefit obligations consistently across states may become increasingly complex, particularly as state labor laws diversify.

Healthcare and M&A: PBMs Under Fire

In healthcare, the role of pharmacy benefit managers (PBMs) is under intense scrutiny. While federal efforts to regulate PBMs have stalled, more than 30 states are advancing legislation to curb their market power. Recent moves by Arkansas to ban companies from owning both PBMs and pharmacies mark a turning point, with major players like CVS, Cigna, and UnitedHealth already reacting through market exits and restructuring. This regulatory activity could drive mergers, divestitures, and litigation. Companies in the healthcare and pharmaceutical supply chains must be prepared for strategic restructuring as states push back against spread pricing and seek to protect independent pharmacies. For investors and corporations, this is a pivotal moment to reevaluate transactional risk, contract exposure, and state-level legal compliance.

At Spizzirri Law, we understand the deep intersections between policy shifts and business risk. Whether you're preparing for a merger, reassessing your tax position, or facing regulatory litigation, our team stands ready to guide you through the complexity with clarity and confidence.

Thanks for reading.

MD

Reference: The Kiplinger Letter: Forcasts for Exuctives and Investors-Vol. 102, No.20, Page 3 & 4