27 Apr CAA Enforcement in 2026: Key Requirements for Brokers
Why CAA Enforcement Is Increasing in 2026
Since the Consolidated Appropriations Act (CAA) introduced new transparency requirements for health plan compensation, regulators have steadily increased enforcement expectations. While the legislation took effect in 2021, 2026 is expected to bring heightened scrutiny around broker and consultant compensation disclosures.
The law requires brokers and consultants providing services to employer-sponsored health plans to fully disclose both direct and indirect compensation before entering into agreements with plan sponsors. These requirements aim to eliminate hidden compensation arrangements and ensure employers understand exactly how their advisors are paid. For brokers, this means documentation is no longer optional. Regulators expect a clear, traceable record that disclosure requirements have been met.
CAA Fee Disclosure Requirements Explained
Under the CAA, brokers and consultants must disclose compensation if they expect to receive $1,000 or more in direct or indirect compensation for services related to a group health plan.
Direct compensation includes payments made directly by the employer or plan sponsor, such as consulting fees, advisory retainers, or broker service fees.
Indirect compensation comes from third parties connected to the plan, including carriers or vendors. This may include commissions, incentive bonuses, marketing fees, or vendor referral compensation.
All indirect compensation must be disclosed with sufficient detail for employers to understand the arrangement, including the services provided and the payer. For more details, the Department of Labor outlines these requirements in its guidance on broker and consultant compensation disclosure.
Written Agreement Requirements
Another critical compliance area is formal written agreements between brokers and employers. The CAA requires that employers understand:
- What services are being provided
- How compensation will be earned
- Any potential conflicts of interest
Without a written agreement outlining these details, employers may struggle to demonstrate compliance if regulators request documentation. Best practice is to maintain agreements that clearly outline:
- Scope of services
- Disclosure acknowledgment
- Renewal terms
These agreements should be updated whenever compensation structures change.
How Employers Can Validate Broker Compliance
While brokers must provide disclosures, plan sponsors ultimately carry fiduciary responsibility for ensuring compliance. Employers may also want to retain documentation showing that disclosures were reviewed and acknowledged, which can help demonstrate due diligence.
Organizations looking to strengthen their compliance framework often work with independent advisors to review plan structure and compensation arrangements. For support navigating these compliance requirements, visit Alternative Insurance Resources’ consulting services.
Documentation Brokers Should Maintain Now
As enforcement increases, brokers should maintain a compliance-ready documentation trail. Key documents include:
- Compensation disclosure statements
- Vendor compensation summaries
- Communication records showing disclosures were delivered
Maintaining organized documentation protects both brokers and employers if regulators request proof of compliance. AIR frequently works with organizations navigating complex regulatory changes and transparency requirements. For additional perspectives on regulatory changes and compliance topics, explore the AIR Insights blog.
Transparency Is Becoming the Industry Standard
The CAA’s compensation disclosure rules represent a broader shift toward transparency in employer-sponsored healthcare. For brokers and consultants, the focus in 2026 should be clear communication, written documentation, and proactive disclosure practices. Organizations that build strong documentation processes now will be better positioned to navigate future regulatory scrutiny and maintain trust with employer clients.