Daily Industry Report - April 25

Your summary of the Voluntary and Healthcare Industry’s most relevant and breaking news; brought to you by the Health & Voluntary Benefits Association®

Jake Velie, CPT
Vice Chairman & President
Health & Voluntary Benefits Association® (HVBA)
Editor-In-Chief
Daily Industry Report (DIR)

Robert S. Shestack, CCSS, CVBS, CFF
Chairman & CEO
Health & Voluntary Benefits Association® (HVBA)
Publisher
Daily Industry Report (DIR)

There’s a Gap Between Healthcare Leaders’ AI Confidence and Their Ability to Scale

By Katie Adams - Many providers express confidence about their AI strategy, but relatively few have established the governance structures needed to ensure responsible AI deployment, according to new research. Nordic Consulting released a report this month based on a survey of 127 leaders who work at healthcare organizations, mainly hospitals and clinics. The results showed that 70% of leaders feel at least somewhat confident in their organization’s AI governance frameworks, but only 15% report having scalable infrastructure in place. Read Full Article…

HVBA Article Summary

  1. Scalability Requires More Than Deployment: Successfully scaling AI in healthcare demands more than just turning on a model — it requires ongoing maintenance, clear governance, robust infrastructure, and integration into operations. Many organizations underestimate the long-term demands of managing AI tools, especially those that are customized and resource-intensive.

  2. Data Infrastructure Is the Biggest Hurdle: A major barrier to AI scalability is the lack of infrastructure to access and process data from disparate systems. While institutions may have the data stored, without interoperability and the ability to process that data effectively, AI models cannot function optimally.

  3. Change Management Is Critical but Often Ignored: Effective AI implementation hinges on clear communication and end-user engagement. Organizations frequently overlook change management, failing to explain the purpose and application of AI insights to frontline users. Real success, Erdal emphasized, comes not from hype but from building foundational capabilities and aligning teams around shared goals.

HVBA Poll Question - Please share your insights

In your opinion, what is the biggest barrier to addressing diabetes in the workplace?

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Our last poll results are in!

30.35%

of Daily Industry Report readers who participated in our last polling question when asked, “What is the primary reason you would offer reference-based priin (RBP) to your clients?” responded with ”increase in price transparency.”

25.37% stated that their primary reason for offering RBP was “client retention strategy as an alternative to traditional healthcare models,” with 23.38% of poll participants stating, “I need to know more about RBP solutions,” and the remaining 20.90% identifying “cost savings” as their primary reason.

Have a poll question you’d like to suggest? Let us know!

Willis Towers Watson sees tariff turbulence adding demand for health benefits advice

By Allison Bell - Global turbulence is creating headwinds for Willis Towers Watson, but it's also increasing demand for the company's health benefits business. Executives talked about the effects of the turbulence today, during a conference call WTW held to go over results for the first quarter. Read Full Article… (Subscription required)

HVBA Article Summary

  1. Geopolitical Uncertainty Slows Some Advisory Work: WTW’s CEO Carl Hess explained that the rollout of U.S. tariffs and the resulting global market volatility have created near-term headwinds, particularly in WTW’s North America career businesses, as clients in certain industries are delaying discretionary advisory projects until the macroeconomic outlook becomes clearer.

  2. Global Health Business Posts 6% Growth in Q1: CFO Andrew Krasner reported that WTW’s global health business grew 6% in the first quarter, with all regions contributing. In North America, growth was fueled by higher client retention, new mid-market sales, and an uptick in consulting fees tied to projects addressing cost management and legislative changes.

  3. Healthcare Inflation Drives Rising Demand for Benefits Advice: Executives highlighted that surging healthcare inflation is expanding WTW’s benefits advisory pipeline, as more employers—especially midsize ones—seek support in managing rising health costs, positioning WTW for continued growth across North America and globally through the rest of 2025.

Police: Man who pulled gun in Edina hospital was arrested about hour later at home 28 miles away

By Paul Walsh, Neal Justin and Louis Krauss - Police on Wednesday said the man who pulled a gun during a domestic dispute in a hospital room at M Health Fairview Southdale in Edina on Tuesday was tracked down and arrested barely an hour later at his home 28 miles away. At a media briefing near the scene late Tuesday afternoon, Police Chief Todd Milburn said officers were called at 2:55 p.m. to a report of someone with a gun at the hospital at 6401 France Av. S. Read Full Article…

HVBA Article Summary

  1. Hospital Lockdown Triggered by Domestic Dispute: A domestic altercation in an eighth-floor hospital room led to a 911 call after a handgun was displayed. Law enforcement swiftly responded, placing the hospital on lockdown for about an hour. No shots were fired, and no injuries were reported.

  2. Suspect Arrested Without Incident: The 65-year-old male suspect, connected to a Minneapolis woman sharing his last name, was apprehended at his home in Independence. A firearm was recovered, and charges are pending.

  3. Strong Multi-Agency Response Praised: Over 30 officers, along with armored vehicles, responded quickly to secure the hospital. Officials praised the coordinated effort by law enforcement, hospital security, and staff for their preparedness and quick action to protect public safety.

Caregiving responsibilities pose big threat to employee retention

By Michael Popke - New research reveals that an underestimated employee burnout crisis caused by caregiving responsibilities now poses a major threat to retention. The “2025 Future of Benefits Report” from Care.com, a large provider of online services for finding family care and care jobs, indicates that the majority of employers (84%) recognize that burnout has a moderate to high impact on retention. Read Full Article… (Subscription required)

HVBA Article Summary

  1. There is a major disconnect between employers and employees on burnout risk: While 45% of employers believe their workforce is at risk of burnout, 69% of employees report actually experiencing moderate to high burnout risk — a 24-point perception gap. This disparity highlights a critical blind spot for leadership and underscores the need for more accurate, employee-informed assessments of workforce wellbeing.

  2. Caregiving responsibilities significantly contribute to employee burnout and retention risks: Balancing caregiving and job duties intensifies burnout, with employees citing higher stress, lower productivity, and poorer mental health without family care benefits. Nearly 1 in 5 workers have already left a job due to the absence of these benefits, and many would switch jobs if offered child or senior care support elsewhere — making caregiving a serious retention challenge for employers.

  3. Providing family care benefits improves employee wellbeing and organizational resilience: Employers that invest in caregiving support report measurable gains in workforce stability, employee satisfaction, and overall business performance. Normalizing caregiving within workplace culture and offering expert support resources can significantly reduce burnout and foster a more loyal, engaged, and high-performing workforce.

‘Really huge’ opportunity for life insurance sales if riddle can be solved

By John Hilton - The problems facing life insurance sellers are not new: Americans know they need life insurance. Americans say they want coverage. Yet, only slightly more than half of Americans actually have life insurance coverage. That is down from a coverage level of 63% in 2011, according to LIMRA’s latest Insurance Barometer study. Read Full Article…

HVBA Article Summary

  1. Massive Life Insurance Need, But Education is Critical: About 100 million Americans say they need life insurance, yet few act due to feeling overwhelmed and intimidated by the complexity. LIMRA’s research shows that nearly 90% of consumers strongly agree they need to fully understand life insurance before purchasing, highlighting the crucial role of education and advisor guidance.

  2. Social Media and AI Are Reshaping Information Sources: A growing number of consumers, especially millennials and Gen Z, turn to social media for financial information—though this exposes them to misinformation. Meanwhile, AI-driven "zero-click searches" are cutting off deeper consumer engagement, making it harder for insurers to connect with prospects unless they’re embedded in AI-sourced content.

  3. Misconceptions About Cost and the Untapped Growth Opportunity: Many Americans grossly overestimate the cost of life insurance, believing premiums are six to ten times higher than they are. With strong demand across demographics and record-high premiums in 2024, even a modest improvement in marketing and sales alignment could unlock significant growth for the life insurance industry.

Sen. Cassidy calls for 340B reform, increased oversight of hospitals, contract pharmacies

By Dave Muoio - A new report on the 340B Drug Pricing Program released Thursday by the chairman of the Senate Health, Education, Labor and Pensions Committee calls for “much-needed” legislative reforms around transparency and oversight of the contentious discount program. Read Full Article…

HVBA Article Summary

  1. Cassidy’s investigation reveals massive 340B program growth and transparency concerns: Sen. Bill Cassidy launched an inquiry into the surging use of the 340B drug discount program, which ballooned to $66.3 billion in discounted outpatient drug purchases by 2023—estimated to have cost $124.1 billion at wholesale prices. The investigation examined eight key participants, including hospitals, federally qualified health centers (FQHCs), pharmacies, and drugmakers, and found wide variation in how savings were applied—with hospitals often using them for capital projects rather than directly benefiting patients.

  2. Contract pharmacy practices and manufacturer restrictions under scrutiny: The report found that contract pharmacies such as CVS and Walgreens charged a growing array of fees to covered entities, reducing the financial impact of the program for providers. Meanwhile, drugmakers like Eli Lilly and Amgen reported steep discounts—some over 90%—and voiced concerns about program integrity. Restrictions imposed on contract pharmacies did little to curb 340B utilization, and Cassidy's team highlighted the need for clearer rules on who qualifies as a patient and how inventory systems are used.

  3. Reform recommendations target transparency, reporting, and patient benefit clarity: Cassidy’s team proposed legislation requiring covered entities to report how 340B revenues benefit patients, along with greater oversight of contract pharmacies and third-party administrators. While hospital groups defended their use of funds for broader community benefits, drugmakers and their lobbyists backed Cassidy’s reform push, accusing hospitals and intermediaries of exploiting the system at the expense of underserved patients. The investigation concluded with a bipartisan call for reform to better align 340B operations with its original mission.

Employee benefits evolve to attract multi-gen workforce

By Caurie Putnam - As companies vie to recruit and retain talented employees in a competitive job market how important are benefits and what kinds of benefits are most sought after? We spoke to two local leaders in the field to find out. “I think because the job market has become so competitive benefits are right up there with wages,” said Marc A. Simmons, senior consultant at Simco Services, a Canandaigua firm that streamlines human HR, payroll, employee benefits and risk management. “I think they’re both very important.” Read Full Article…

HVBA Article Summary

  1. Core Benefits Remain Essential: Traditional offerings like medical, dental, life, and disability insurance, along with retirement savings plans, continue to be foundational for employers aiming to attract and retain talent. The 2024 SHRM Employee Benefits Survey highlights that 88% of employers rank health care-related benefits as “extremely” or “very important,” underscoring the critical role of comprehensive insurance coverage in today’s expensive healthcare environment.

  2. Generational Differences Shape Expectations: Employers must recognize that benefit preferences vary significantly across generations. While Baby Boomers and Gen X workers tend to prioritize health insurance and job security, Millennials and Gen Z employees are more focused on benefits that promote flexibility, mental health, and overall wellness. Tailoring benefit strategies and communication methods to the expectations of each generational group is increasingly necessary for effective talent acquisition and retention.

  3. Expanded and Voluntary Benefits Gain Traction: In addition to core benefits, voluntary offerings like emergency fund accounts, eldercare support, pet insurance, and expanded mental health resources are becoming more popular, especially among younger generations. Post-pandemic trends have elevated the importance of emotional well-being and financial security, pushing companies to diversify their benefits packages to meet the evolving.