Daily Industry Report - April 7

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)

Former Acting Labor Secretary Su Outlines “Risks” to the DOL Under Trump

By Amy Resnick - Julie Su, acting secretary of labor in the Biden administration, wrote in a recent column that cuts being made by the Trump administration and the Department of Government Efficiency Service Temporary Organization are putting workers, and retirement and benefit plans, at risk. Su, who is now a senior fellow at The Century Foundation, published an article on April 3 discussing the DOL’s accomplishments during Biden’s tenure. Read Full Article…

HVBA Article Summary

  1. Severe Staffing Cuts Threaten Worker Protections: Acting Labor Secretary Julie Su cautioned that deep staffing reductions at the Department of Labor (DOL), driven by the current administration, could dismantle the agency’s capacity to safeguard worker rights. She warned that such moves primarily benefit corporations seeking profit at the expense of employee protections.

  2. Risks to Retirement and Health Benefits Oversight: Su highlighted that funding cuts would significantly diminish the DOL’s ability to enforce regulations ensuring that employers properly fund retirement plans and make responsible financial decisions. This would leave workers’ retirement savings and access to health benefits more vulnerable to mismanagement and neglect.

  3. Understaffed and Overburdened DOL Faces Uncertain Future: With only one investigator for every 14,000 benefit plans, the DOL is already stretched thin. Additional cuts could eliminate crucial roles like benefits advisers who assist workers facing denied health coverage. Meanwhile, delays in leadership appointments and uncertainty around advisory bodies like the ERISA Advisory Council further threaten the agency’s effectiveness.

HVBA Poll Question - Please share your insights

What is the primary reason you would offer reference-based pricing (“RBP”) to your clients?

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Our last poll results are in, and we have a tie!

30.00%

of Daily Industry Report readers who participated in our last polling question when asked, “are you currently using a price transparency platform, and if so, primarily for which of the following reasons?” responded with ”to satisfy my fiduciary responsibility to my clients”. At the same time, another 30% stated, “I don’t have a price transparency platform solution today.

16.25%  responded with “to compare networks at renewal for clients,” and 12.50% of poll participants stated their primary reason to be “to identify cost-effective providers for clients.” Meanwhile, 11.25% of poll respondents currently use a price transparency platform “to help clients negotiate better direct contracts.”

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

Mehmet Oz wins Senate confirmation to lead Centers for Medicare and Medicaid Services

By Riley Beggin, Ken Alltucker, and Sarah D. Wire  -Television host and surgeon Dr. Mehmet Oz was confirmed on Thursday to lead the Centers for Medicare and Medicaid Services on a 53-45 vote that split the U.S. Senate along party lines with Republicans in support and Democrats in opposition. During his confirmation hearing last month, Oz vowed to empower patients to take charge of their health care and crack down on fraud, waste and abuse to safeguard federal health programs. Read Full Article… 

HVBA Article Summary

  1. Oz pledges to protect vulnerable Americans and reduce federal health spending: He emphasized his commitment to working tirelessly to ensure the Centers for Medicare and Medicaid Services (CMS) deliver access to superb care, with a special focus on protecting the most vulnerable populations, including children, the disabled, and the elderly, while also addressing chronic diseases that drive up government healthcare costs.

  2. Background in medicine and media: Before gaining national fame, Oz was a practicing cardiothoracic surgeon. He rose to prominence as a health expert on “The Oprah Winfrey Show” and went on to host “The Dr. Oz Show,” where he became a familiar figure in American households and frequently discussed a wide range of health topics, including supplements and alternative treatments.

  3. Controversial health views and political involvement: Throughout his public career, Oz has drawn criticism for endorsing medical treatments that lack scientific consensus, such as a controversial weight loss regimen and the promotion of hydroxychloroquine for COVID-19. He advised President Trump informally during the pandemic and later entered politics, losing a high-profile U.S. Senate race in Pennsylvania in 2022.

More Federal Telehealth Extensions – But Don’t Forget About the State Policies 

By Center for Connected Health Policy - The Drug Enforcement Administration (DEA) and the Department of Health and Human Services (HHS) recently released an additional extension of the effective date for two previously published federal final rules: Expansion of Buprenorphine Treatment via Telemedicine Encounter (Now Effective December 31, 2025) Continuity of Care via Telemedicine for Veterans Affairs Patients (Now Effective December 31, 2025). Read Full Article… (Subscription required)

HVBA Article Summary

  1. Federal Telehealth Prescribing Rules Delayed to End of 2025: The DEA has pushed the effective dates for the final rules on telemedicine prescribing of buprenorphine and controlled substances for Veterans Affairs patients to December 31, 2025, aligning with the extended COVID-19 telemedicine flexibilities. This delay allows further review of legal, factual, and policy issues, and does not restrict current telemedicine prescribing under the temporary extension.

  2. Permanent Federal Rules Proposed, But Still in Limbo: While two final rules (Buprenorphine and VA) have new effective dates, a third proposed rule—the Special Registration for Telemedicine—is still under review with no set implementation date. It would create a more permanent framework for telemedicine prescribing, requiring DEA registration and stricter telehealth modalities (e.g., audio-video).

  3. State Policies Still Govern Telehealth Use: Even with these federal extensions, state laws remain critical. States maintain individual policies on prescribing, licensure, and telehealth standards, some of which may impose stricter requirements or outright limitations on controlled substance prescriptions. Providers must navigate both federal and state laws to ensure compliance.

What is the C-suite getting wrong about AI strategy?

By Eric Wicklund - A new survey of healthcare C-Suite executives finds that while many are taking a good look at generative AI, they’re not doing what they should to support scalability or sustainability. The survey of 300 executives from American healthcare organizations, conducted by Accenture Managing Directors Tejash Shah and Kaveh Safavi and Health Industry Lead Researcher Daniel Owczarski, indicates 83% are piloting gen AI tools, but only 10% are investing in the data infrastructure needed to deploy the technology beyond the pilot. Read Full Article… 

HVBA Article Summary

  1. AI Leadership Disconnect: There’s significant misalignment in healthcare leadership over who should oversee AI strategy. While 28% of CEOs think they should lead efforts to redefine roles impacted by AI, only 5% of other C-Suite leaders agree. Most believe this responsibility lies with Chief Digital or AI Officers, overlooking the critical role clinical leaders like CNOs and CMOs should play, especially given ongoing labor shortages among nurses and frontline staff.

  2. Underinvestment Risks ROI and Innovation: Despite high expectations for short-term returns, most healthcare organizations are not investing enough in the digital infrastructure needed for long-term success. Only half of executives report strong alignment between strategy and tech goals, putting them at risk of falling behind both in care delivery and competitive positioning.

  3. ROI Metrics Miss the Human Impact: While executives are optimistic about AI’s ability to boost efficiency and revenue, far fewer recognize its potential to improve clinical decision-making or reduce staff burnout. This financial-first focus may conflict with the goals of many AI implementations aimed at easing clinician workloads and enhancing care quality.

Why are optometrists squinting at vision care plans?

By Allison Bell - Optometrists and vision plans are trying to pull state legislators more deeply into their battle. The optometrists say the the vision plans are using control of vision benefit managers, prescription lens labs, optical supply makers and eyeglass frame makers to bully them and the patients. Read Full Article… (Subscription required)

HVBA Article Summary

  1. Optometrists vs. Vision Plans: Optometrists claim that large vision benefits managers (VBMs) have amassed significant control over the vision care market—around 70%—and are using that influence to limit choices for both patients and providers. In contrast, vision plans argue that optometrists are pushing legislation that unfairly restricts efforts to keep vision care affordable.

  2. Debate Over VBMs: Optometric representatives warn that VBMs often require the use of VBM-owned labs and interfere with the patient-provider relationship. Vision plan leaders dispute the very concept of VBMs, calling the term a misleading analogy to pharmacy benefit managers (PBMs) and emphasizing that vision plans operate transparently in a competitive, price-lowering environment.

  3. Policy and Legal Tensions: At least 27 states have enacted VBM laws, championed by optometrists, to block mandates on using specific vendors for vision care services and products. While optometrists push for broader adoption, vision plans are challenging these laws in federal court, and employers are watching closely as the conflict mirrors broader debates over care management and market control in healthcare.

As Trump Ponders Health Cuts, Obamacare Grows In Red States He Won

By Bruce Japsen - Enrollment in individual coverage under the Affordable Care Act, also known as Obamacare, is growing faster in states Donald Trump carried in the last election, according to a new analysis. Obamacare enrollment, which is at a record more than 24 million, has more than doubled since 2020 “with the fastest growth occurring in states won by President Trump in 2024,” KFF said in a report released this week. Read Full Article… (Subscription required)

HVBA Article Summary

  1. Enrollment Growth Strongest in Trump-Carried States: Over the past five years, 88% of the enrollment increase in Affordable Care Act (ACA) coverage came from the 31 states that Donald Trump won in the last election, with these states seeing an average enrollment growth of 157%—far outpacing the 36% growth in states carried by Kamala Harris.

  2. Record Enrollment Driven by Expanded Subsidies: Enhanced premium subsidies introduced in 2021 under the Biden administration significantly boosted ACA enrollment, especially in Republican-leaning states. These subsidies made health insurance more affordable and accessible, helping millions gain coverage through the individual Marketplace.

  3. Future Uncertain Amid HHS Cuts and Political Pushback: Despite record enrollment and insurer expansion into new markets, looming cuts to the Department of Health and Human Services—led by Trump, RFK Jr., and Elon Musk—threaten the ACA’s progress. The expiration of enhanced subsidies at the end of 2025 further adds to uncertainty unless Congress takes action.

Medicare will not cover GLP-1s for weight loss: 3 notes 

By Erica Carbajal - CMS said April 4 it will not move forward with a Biden-era proposal to allow Medicare coverage of GLP-1 drugs when prescribed solely for weight loss. Three notes: Read Full Article…

HVBA Article Summary

  1. Medicare Coverage for Weight Loss Drugs Not Moving Forward—For Now: CMS stated in a recent fact sheet that it is not currently advancing a proposal to cover anti-obesity medications under Medicare. However, the agency left the door open to reconsidering the policy in the future, signaling potential changes depending on legal, clinical, or budgetary developments.

  2. Biden’s Late-Term Proposal Aimed to Expand Access: In November, near the end of his term, former President Joe Biden proposed allowing Medicare and Medicaid to cover GLP-1 drugs for weight loss. These medications are currently covered only for diabetes and heart disease, and the policy change would have significantly expanded access for Americans with obesity.

  3. Cost of Expansion Would Be Substantial: Medicare spent about $35.8 billion in 2023 on 10 commonly used diabetes drugs, including GLP-1s. The Congressional Budget Office estimated that expanding Medicare coverage to include weight loss drugs would cost approximately $35 billion over nine years and could extend benefits to nearly 13 million older adults.