Aronowitz Defends EBSA Agenda During Congressional Hearing

By James Van Bramer – Daniel Aronowitz, assistant secretary of labor and head of the Employee Benefits Security Administration, defended the agency’s shift in enforcement priorities during a congressional hearing Thursday. He argued, in his first congressional hearing since last September, that the changes reflect President Donald Trump’s efforts to restore balance to a system Aronowitz claimed had been distorted by excessive litigation and overregulation. The hearing displayed partisan disputes and occasional cross-party common ground on how EBSA—the agency responsible for policing employer-sponsored benefit plans covering more than 150 million Americans—has operated during Trump’s second term. Read Full Article...

HVBA Article Summary

1. Shift in Enforcement Priorities: Daniel Aronowitz defended the Employee Benefits Security Administration’s (EBSA) new enforcement direction, which emphasizes reducing litigation and regulatory burdens on employers. The agency aims to provide clearer rules for plan sponsors and more efficient enforcement, with a focus on encouraging more employers to offer benefits. This approach is intended to address what the administration views as excessive litigation and overregulation in the past.

2. Partisan Debate Over Worker Protections: The hearing highlighted significant partisan disagreement regarding the impact of EBSA’s policy changes. While Republicans supported the reduction in investigations and regulatory requirements, Democrats expressed concern that these changes, along with proposed budget cuts, could weaken consumer protections and leave workers more vulnerable, especially regarding financial advice and access to affordable health care. Despite these disagreements, there was some bipartisan support for increased transparency in health care pricing.

3. Controversy Over Mental Health and Fiduciary Rules: Under Aronowitz’s leadership, EBSA has stopped defending the previous administration’s fiduciary rule and has changed its enforcement stance on mental health parity regulations. Democrats criticized these moves, arguing they could expose workers to higher risks and costs, particularly in areas like mental health and high-cost investments in retirement plans. Aronowitz, however, maintained that the agency remains committed to improving access to mental health care and cited recent settlements as evidence of ongoing enforcement efforts.

ACA exchanges will continue to shrink as fewer enrollees pay premiums, analysis suggests

By Rebecca Pifer Parduhn – Wakely’s data is the clearest signal to date on just how drastically the ACA exchanges could contract this year due to the expiration of COVID-era enhanced tax credits. The subsidies, which expanded financial assistance for middle- and low-income enrollees, lapsed at the end of last year after a fierce but ultimately fruitless battle in Congress over whether or not to extend them. As a result of the subsidy loss, premiums more than doubled on average for subsidized enrollees in 2026 — the largest net premium increase since the initial implementation of the ACA, according to Wakely. Health policy experts said that millions of Americans would be priced out of the exchanges, and that ACA enrollment could fall by more than 30% this year. Read Full Article...

HVBA Article Summary

1. Significant Enrollment Decline Expected: The analysis projects that ACA exchanges could shrink by 17% to 26% in 2026, primarily because a higher proportion of enrollees are not paying their premiums. This is a much steeper decline than the 5% drop initially reported by CMS, which only counted total sign-ups rather than those who actually paid. The actual reduction in coverage may be even higher in some states, depending on local premium payment patterns and state-level policies.

2. Loss of Subsidies Drives Premium Increases: The expiration of enhanced COVID-era tax credits led to a substantial increase in premiums for subsidized enrollees, with average net premiums more than doubling in 2026. This sharp rise in costs has resulted in many individuals, especially those automatically reenrolled, choosing not to pay their premiums or dropping coverage altogether. The loss of subsidies has therefore directly contributed to the contraction of the ACA market and increased financial strain for many Americans.

3. Potential for Increased Morbidity and Insurer Instability: As younger and healthier individuals are more likely to drop their coverage due to higher costs, the remaining insured population is expected to be sicker and more expensive to cover. Wakely estimates that overall ACA morbidity could increase by 2.9% to 6.5% in 2026. This shift could force insurers to raise premiums further or even exit the exchanges in the following year, reducing plan options and increasing uncertainty for both consumers and insurers.

House bill would require drug labels to name manufacturers

By Allison Bell – Republicans and Democrats are teaming up in Congress to try to make the labels on prescription drug packages more transparent. The lawmakers have introduced the Consumer Labeling for Enhanced API Reporting and Legitimate Accountability for Base Entity Listings Act bill, or CLEAR LABELS Act bill. The bill would require most prescription drug labels to connect the patient with information about the manufacturer, packer or distributor of a drug; the place of business of the source of the drug; and the unique facility identifier of the original manufacturer, according to the bill text. The sponsors in the House are Reps. Rich McCormick, R-Ga., and Rosa DeLauro, D-Conn. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Bipartisan Support for Transparency: The CLEAR LABELS Act has garnered backing from both Republican and Democratic lawmakers in the House and Senate, reflecting a shared interest in increasing transparency in the pharmaceutical supply chain. The proposed legislation aims to make it easier for patients, pharmacists, and healthcare providers to identify the origins of prescription drugs. This bipartisan approach may improve the bill's chances of advancing through Congress.

2. Labeling Requirements and Implementation: If enacted, the bill would require prescription drug packaging to include information about the manufacturer, packer, or distributor, as well as the location of the business and a unique facility identifier. The information could be provided directly on the label or accessed through digital means such as QR codes or online portals. This flexibility is intended to ensure that patients can readily access detailed information about their medications regardless of the packaging format.

3. Potential Impact on Stakeholders: The increased transparency could empower employers, advisors, and consumers to make more informed decisions about where their medications are sourced. By providing clear information about manufacturing origins and safety standards, the bill could help address concerns about drug quality and supply chain integrity. Additionally, it may enable some buyers to seek out more cost-effective or reputable sources for prescription drugs.

Are rising costs hitting voluntary benefits?

By Ginger Christ – Increasing financial pressures on workers — rising healthcare costs, inflation and a higher cost of living — are forcing them to make tough choices. Some are delaying healthcare, others are taking on second jobs and some are even putting off retirement. As employees look for ways to shore up their finances, where does that leave voluntary benefits? So far, uptake remains about the same, Melanie Cannon, vice president of worksite voluntary benefits sales and marketing at Amalgamated Life Insurance Co., told HR Dive. Read Full Article...

HVBA Article Summary

1. Voluntary Benefits as a Financial Safety Net: As employers shift more healthcare costs onto employees, voluntary benefits such as disability, accident, or permanent life insurance are increasingly viewed as a way to fill financial gaps. These benefits can provide direct cash support for unexpected expenses related to injury or illness, which is especially valuable for workers facing high-deductible health plans. The article highlights that accident insurance, in particular, is popular because it offers flexibility in how the benefit can be used.

2. Cost-Cutting Choices Among Workers: Despite rising living costs, most employees are not dropping voluntary benefits altogether, but some are making selective cuts. For example, blue-collar workers may choose to cancel supplemental life insurance policies if they already have basic coverage through their employer. This suggests that while voluntary benefits remain important, workers are prioritizing core protections and trimming less essential add-ons to manage their budgets.

3. Premium Costs Influence Coverage Decisions: According to a recent ADP survey cited in the article, premium costs have become the leading reason employees waive coverage, opt for alternate insurance, or exclude dependents from plans. The survey also found that a minority of workers are beginning to forgo voluntary benefits like vision and dental insurance in order to afford medical coverage. This trend indicates that as healthcare costs rise, some voluntary benefits may be at risk of declining participation.

FTC, Optum Rx seek another stay in antitrust case

By Kristen Smithberg – The Federal Trade Commission and Optum Rx have jointly asked to again extend a pause in the agency's antitrust case, continuing a series of procedural delays that could signal ongoing settlement discussions. The case, filed in September 2024, targets Optum Rx and affiliated entities in a Part 3 administrative proceeding — the FTC's in-house trial process before an administrative law judge. In its complaint, the FTC alleges that Optum Rx, one of the largest pharmacy benefit managers in the country, engaged in conduct that harmed competition by leveraging its position between drug manufacturers, insurers and pharmacies. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Repeated Delays in Antitrust Proceedings: Since early 2026, the FTC and Optum Rx have agreed to multiple stays in the litigation, which have postponed key deadlines and procedural steps. These delays are attributed to ongoing settlement talks as well as operational disruptions caused by lapses in federal funding. The repeated extensions suggest that both parties may be working toward a potential resolution outside of a full administrative trial.

2. Broader Regulatory Scrutiny of PBMs: The case against Optum Rx is part of a wider trend of increased federal and state oversight of pharmacy benefit managers (PBMs). Policymakers are focusing on PBMs' influence over drug pricing, rebate structures, and market access, with concerns that their practices may disadvantage independent pharmacies and impact prescription drug costs. Recent executive actions and legislative efforts at both the federal and state levels reflect a push for greater transparency and regulation of PBM activities.

3. Potential Impact on Drug Pricing and Market Practices: The outcome of this case could have significant implications for how PBMs operate within the pharmaceutical supply chain. If the FTC's allegations are upheld or a settlement is reached, it may lead to changes in how PBMs design formularies, negotiate rebates, and contract with pharmacies. Such changes could affect drug pricing strategies, the competitive landscape for independent pharmacies, and ultimately, the cost of prescription drugs for consumers.

When patterns repeat, markets will follow

By Jamie Greenleaf – History provides context. Without it, today's challenges can feel random — when in reality, they tend to follow a pattern. Having grown up in the retirement space, I watched a fundamental shift in both how advice was delivered and how it was paid for by employers and their employees. Today, commissions have largely disappeared from retirement plans, which begs the question: what changed? Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Regulatory Changes Drive Compensation Transparency: The article highlights how regulatory actions, such as the Department of Labor's Prohibited Transaction Exemption 2020-02 and ERISA §408(b)(2), have increased transparency in adviser compensation within retirement plans. These regulations required advisers to act in clients' best interests, disclose conflicts, and justify their compensation, leading to a shift away from commission-based models. This shift was not voluntary but a response to compliance burdens and the need to fit within fiduciary standards.

2. Healthcare Sector Faces Similar Fiduciary Pressures: Recent legislative updates, including the Consolidated Appropriations Acts of 2021 and 2026, are extending similar transparency and disclosure requirements to the healthcare benefits market. The article notes that hidden compensation among pharmacy benefit managers, brokers, and vendors is now under greater scrutiny, with litigation and enforcement actions beginning to emerge. This mirrors the earlier evolution seen in the retirement sector, suggesting the healthcare market is at the start of a comparable transformation.

3. Market Evolution Favors Level-Fee, Fiduciary-Aligned Models: As employers and plan sponsors gain more visibility into adviser compensation, there is a growing expectation for fiduciary-aligned advice and level-fee structures. The author argues that these changes are driven by necessity rather than preference, as standing still could mean falling behind in a rapidly evolving regulatory environment. Ultimately, the market is likely to move toward greater transparency and alignment with fiduciary standards, benefiting both employers and employees.

VA deploys Oracle EHR at four Michigan medical centers

By Emily Olsen – The Department of Veterans Affairs deployed the Oracle electronic health record at four hospitals over the weekend, the first VA medical centers to receive the new system in years amid an embattled rollout. The EHR went live at four medical centers in Michigan — VA Ann Arbor Healthcare System, VA Battle Creek Medical Center, VA Detroit Healthcare System and the VA Saginaw Healthcare System — on Saturday, the department said in a Monday press release. The rollouts are the first of 13 planned EHR deployments this year. Four medical centers in Ohio and Kentucky are scheduled to next receive the Oracle records system in June. Read Full Article...

HVBA Article Summary

1. Restart of EHR Rollout After Delays: The VA’s deployment of the Oracle EHR in Michigan marks the first such implementation at its medical centers in several years, following a period of halted rollouts due to technical and operational challenges. The project had previously been paused in 2023 after persistent reliability issues and concerns about patient safety. This restart signals renewed momentum for the VA’s modernization efforts.

2. Efforts to Address Previous Issues: In preparation for the new deployments, the VA reported that it has resolved hundreds of problems identified during earlier phases of the EHR rollout. The department has also taken steps to streamline project management and reduce bureaucratic obstacles that contributed to previous delays. Additionally, the VA is hiring 400 more workers to support the implementation and ensure smoother transitions at upcoming sites.

3. Broader Rollout Plans for 2026: The Michigan deployments are the first of 13 planned for the year, with additional medical centers in Ohio, Kentucky, Indiana, and Alaska scheduled to receive the Oracle EHR in the coming months. The VA’s goal is to create a unified electronic health record system across its network to improve care delivery for veterans and providers. Successful implementation at these sites will be critical for the VA’s long-term modernization strategy.

What is ‘Ozempic personality,’ and why does it make life feel ‘meh’?

By Ariana Eunjung Cha – Korrie Stevenson had been feeling off for months. She would look at a gorgeous birthday cake or walk outside to a pink-and-purple streaked sunset, but not really enjoy them. The 51-year-old mother of two had similar feelings about sports, something she had loved since she was a child. But it wasn’t depression, she said. Everything was just “meh.” “Like you’re trying to be excited about a moment but can’t fully connect to it,” she said. Then one day, she was driving near her home in Winter Park, Florida, when the thought came to her: Was it a side effect of her GLP-1 medication? Read Full Article...

HVBA Article Summary

1. Emerging Reports of Emotional Flattening Among Some Users: Doctors have begun hearing consistent anecdotal reports of emotional blunting, sometimes described as anhedonia or “Ozempic personality,” among a subset of GLP-1 drug users. These experiences include reduced enjoyment of everyday activities such as music, food, relationships, and hobbies, though they are not considered widespread. Experts emphasize that these observations are still preliminary, with no confirmed causal link established.

2. Mixed Evidence on Psychological Effects of GLP-1 Drugs: While research has primarily focused on metabolic safety and effectiveness, newer studies suggest potential mental health benefits, including reduced risks of depression, anxiety, and substance-related harms. However, these findings are correlational, not causal, and do not fully explain reported cases of emotional dulling. Researchers are exploring how these drugs may affect dopamine and the brain’s reward system, potentially reducing cravings while also dampening pleasure in some individuals.

3. Ongoing Investigation and Importance of Individualized Care: Clinicians report that some patients experience improvement in symptoms after adjusting dosage or discontinuing the medication, though responses vary widely. Early case studies are underway to better understand whether these effects are pharmacological, psychological, or a combination of both. Experts recommend monitoring for emotional changes and tailoring treatment to maintain both physical health benefits and overall quality of life.