Insurance regulators warned of 'Scattered Spider' ransomware threat

By Allison Bell – Employers and their benefits advisors should beef up anti-phishing systems and training to keep the Scattered Spider ransomware group and its imitators out of their computers. The Cybersecurity Working Group, an arm of the National Association of Insurance Commissioners, included a discussion of the Scattered Spider ransomware problem in a document packet prepared for a recent in-person session in Minneapolis. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Scattered Spider Exploits Social Engineering to Infiltrate Networks: The ransomware group, composed primarily of English-speaking teenagers, relies heavily on social engineering rather than advanced technical exploits. They collect personal and professional details of executives and IT staff from public sources and then use that information to impersonate employees when contacting help desks. By persuading support staff to reset passwords or by flooding authorized users with MFA notifications until one is approved, they can bypass security barriers and gain access to sensitive company systems. Once inside, members typically steal and encrypt data before demanding ransom payments.

2. Insurers and Health Benefits Firms Are Prime Targets: Regulators were briefed that ransomware groups like Scattered Spider see insurance and benefits firms as particularly appealing targets because these companies are perceived as more willing to pay ransom demands to restore operations quickly. The attacks have already caused major disruptions at large property and casualty insurers and have been linked to breaches at health-related service providers such as Episource, a UnitedHealth subsidiary, and Aflac. Analysts warn that these incidents highlight not only the direct risk to insurers themselves but also the potential for cascading impacts on employer clients who depend on their services.

3. Heightened Need for Safeguards and New Protection Strategies: Cybersecurity experts stress that high-risk organizations must strengthen their defenses against phishing and improve training for frontline staff and vendors, as attackers often use third-party service providers as entry points. Beyond technical measures, employers are also exploring identity protection plans to reduce the harm of compromised personal data, while fraud experts argue for new strategies that limit how stolen identities can be used to make purchases or withdraw cash. These recommendations underscore the importance of layered defenses and proactive planning across both insurers and the broader benefits sector to reduce exposure to groups like Scattered Spider.

HHS to form outside committee on reshaping Medicare, Medicaid

By Paige Minemyer – The Department of Health and Human Services (HHS) will seek external experts for a new committee tasked with providing strategic guidance on the care provided by government insurance programs. The HHS announced Thursday that the Healthcare Advisory Committee will offer recommendations to Secretary Robert F. Kennedy Jr. and Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz, M.D., seeking to "improve how care is financed and delivered" across Medicare, Medicaid, the Children's Health Insurance Program and the Affordable Care Act's exchanges. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. CMS Advisory Committee Nominations Open: The Centers for Medicare & Medicaid Services (CMS) has announced the formation of a new advisory committee and is currently accepting nominations. The agency is seeking individuals with expertise in chronic disease management, federal health program financing, and delivery system reform. Nominations, which may be submitted by organizations or individuals themselves, will be accepted for 30 days following the August 22 publication in the Federal Register. A finalized list of committee members will be announced later this year.

2. Primary Focus Areas for Policy Development: The committee will be tasked with developing targeted policy recommendations across several critical domains. These include enhancing chronic disease prevention and management strategies, establishing a more efficient and patient-safety–oriented regulatory framework, modernizing CMS systems through real-time data use for claims processing and quality measurement, and improving the Medicaid program by identifying structural reforms. Additionally, the committee will evaluate the sustainability of Medicare Advantage, particularly around updating risk adjustment and performance measurement approaches.

3. Stated Goals Emphasize Efficiency and Patient-Centric Reform: The CMS emphasizes that the committee’s mission is to drive forward meaningful healthcare improvements by reducing administrative burdens, expanding access to preventive care, and ensuring transparency and accountability through data-driven oversight. While aiming to modernize programs and reduce red tape, the CMS and its leaders stress that patient-centered care remains at the core of all proposed reforms. The effort reflects a broader push to provide high-quality, affordable healthcare without excessive costs or corporate influence.

New HSA legislation makes education the next frontier for benefits leaders

By Chris Byrd – Congressional passage of the recent tax legislation marks the most consequential expansion of health savings accounts since their inception over two decades ago. Provisions in the bill — such as one increasing HSA availability for people with bronze or catastrophic health plans and one that expands pre-deductible coverage — signal powerful support for a solution that already helps tens of millions of Americans manage escalating health care expenses. As benefits leaders, our initial focus may be on operational adaptation, but the true, larger hurdle ahead lies in effective education and connecting with consumers where they are. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Legislative Expansion Will Meaningfully Increase Eligibility: The recent tax legislation expands HSA availability to consumers with bronze or catastrophic plans and allows certain pre-deductible coverage, creating a materially larger eligible population. The article cites 7.3 million people enrolled in bronze or catastrophic plans through ACA marketplaces as of January 2025 as an example of the scale of the newly eligible market. Benefits leaders should expect to engage a much broader set of consumers during upcoming open enrollment periods.

2. Education and Tailored Communication Are Critical for Adoption: The piece argues that eligibility alone will not drive automatic HSA enrollment and that clear, targeted education is needed to connect with consumers where they are. Generic, one-size-fits-all messaging often fails to explain what is HSA-eligible or how much to save, so segmentation and personalization are recommended to make messages relevant. Employers and benefits administrators should prioritize concise, personalized outreach rather than long PDFs and infrequent touchpoints to improve adoption and utilization.

3. Research Insights Identify What Resonates and What Influences Behavior: WEX and Visa research cited in the article finds messaging that emphasizes emotional and functional benefits (peace of mind, tax reduction, emergency savings) resonates more than technical details. The article notes over 90% of HSA owners do not invest their account balances, indicating many use HSAs for near- to mid-term spending rather than long-term investment, and nearly 60% view HSAs as important for retirement. Employer contributions are identified as the single most important factor influencing employees' decisions to contribute to an HSA, underscoring the role employers play in driving participation.

Health insurance carriers request raising ACA premiums by more than 20% on average in Texas

By Gabby Birenbaum and Dan Keemahill – Health insurance companies have requested an average premium increase of 24% for Affordable Care Act plans in Texas in 2026, a significant hike that could lead to destabilization in the marketplace and customers opting for less or no coverage. Last year, the average rate hike across insurance carriers was 3.8%. Data analysis from KFF found that next year’s rate hikes could be the largest increase since 2018, when average premiums went up by 35% in Texas. In 2018, companies factored in Congress’ attempts to repeal the Affordable Care Act and President Donald Trump signing an executive order ending subsidies to insurers for low-income people. Read Full Article...

HVBA Article Summary

1. Enrollment Growth and Greater Plan Choices: ACA enrollment in Texas has nearly tripled from 1.3 million in 2021 to 4 million in 2025, following the expansion of federal premium tax credits. The uninsured rate fell from 23% in 2012 to 16.3% in 2023. Texans now have broader access to coverage, with 114 counties offering at least four insurer options—up from just five in 2018—and only seven counties limited to one.

2. Expiration of Subsidies May Raise Costs: Enhanced federal tax credits, used by 83% of ACA enrollees in Texas, are set to expire after 2025. These credits limit premiums to 8.5% of income and expand eligibility past 400% of the poverty level. If they end, Texans earning over $62,600/year could lose subsidies, and those below $23,475 could face higher out-of-pocket costs, threatening affordability for many.

3. Premium Hikes Anticipated Across Major Insurers: With the tax credits ending and costs rising, insurers are filing for steep 2026 increases. BCBS Texas (1.1 million enrollees) seeks a 39% hike, Celtic a 41% hike, and Superior up to 37% in Houston. The average subsidized premium is $57, while the full benchmark plan costs $489/month. If healthy individuals leave the market, rates could rise further, echoing the instability seen in 2016.

Home Sweet Healthcare: Why the Best Care Setting Is Outside the Clinic

By Kent Dicks – For decades, healthcare centered on physical locations – clinics, hospitals, examination rooms, and the like. If you needed treatment, you went to the care. Patients endured long waiting lines, lingered in lobbies, and hoped their providers could address their issues within the allotted time of an in-office visit. Today, however, healthcare’s focal point is shifting. For the modern patient, the most meaningful venue for healthcare isn’t the hospital; it’s the home. Read Full Article...

HVBA Article Summary

1. Home-based care reflects patient preferences and everyday realities: A large majority of older Americans express a strong desire to remain in their homes as they age, with surveys consistently showing this preference. By shifting healthcare delivery into home settings, care aligns more closely with people’s daily lives, routines, and comfort, rather than requiring them to adapt to the constraints of clinical environments. This approach respects individual autonomy while meeting patients where they feel most at ease.

2. Technology enables accessible and integrated care beyond clinics: Recent advances such as remote patient monitoring, smart devices, and connected platforms have expanded what healthcare at home can provide. Patients with chronic conditions can now be supported in real time, caregivers can unobtrusively ensure safety and adherence, and access to primary, mental health, and specialist care is possible with only a smartphone or internet connection. This integrated model reduces common barriers like transportation difficulties, work conflicts, and mobility issues, ultimately making care more inclusive and effective.

3. Successful adoption requires trust, privacy, and cultural shifts: For home-centered care to be embraced, patients must trust that their data is protected and their consent respected, given the large amounts of health information generated in home settings. Equally important is overcoming outdated perceptions that virtual care is only a temporary substitute for in-person visits. When viewed instead as a forward-looking, flexible model, virtual-first care can strengthen patient-provider relationships, improve outcomes, and create a healthcare system better able to adapt to demographic changes, financial pressures, and public health crises.

Pharma costs squeeze hospital margins

By Paige Twenter – The rising cost of medications is turning into a financial gut punch for hospitals, with pharmaceutical spending driving tens of millions of dollars in losses across health systems. In the first half of 2025, New York City-based Memorial Sloan Kettering Cancer Center reported an operating loss of $113.2 million. Along with costs related to its Epic EHR implementation, the cancer center attributed the shortfall to increased medical supply and pharmaceutical expenses. Read Full Article...

HVBA Article Summary

1. Pharmaceutical Costs Are a Major Driver of Rising Hospital Expenses: Several large health systems, including Cleveland Clinic, Providence, and Mass General Brigham, reported notable year-over-year increases in their operating expenses during 2024–2025. A significant portion of these increases stemmed from higher pharmaceutical spending, which in some cases outpaced overall expense growth. For example, Providence’s $100 million rise in operating costs was partly tied to a 12% increase in pharmaceutical expenses, while Mass General Brigham saw a 22% jump in drug spending within its $20.5 billion operating budget.

2. Industry-Wide Trend Linked to Systemic and Demographic Factors: Rising pharmaceutical costs are not limited to individual health systems but reflect a broader industry pattern. Strata’s financial benchmarks showed that across more than 1,850 U.S. hospitals, pharmaceutical expenses grew nearly 10% between mid-2024 and mid-2025, compared with smaller increases in purchased services (7%) and labor costs (3.8%). Analysts point to factors such as an aging population, the increasing use of specialty drugs, and a shift toward complex, high-cost pharmacologic interventions as the main forces behind these sustained increases.

3. Future Budget Pressures Anticipated from Policy and Trade Changes: Hospitals are preparing for additional financial headwinds related to both policy and trade. The Health Resources and Services Administration will pilot a new 340B rebate model in 2026, which could disrupt cash flow, with disproportionate share hospitals projecting an average $72.2 million annual impact. At the same time, potential pharmaceutical tariffs — with rates possibly as high as 200–250% — are prompting systems like Providence and Baptist Health to strengthen their procurement strategies, forecast supply risks, and maintain safety stock levels in order to manage the uncertainty.

Employees feel bleak about their financial futures, despite robust benefits

By Alyssa Place - Employees of every demographic feel increased negativity about their financial situations, despite greater investments by employers to improve financial wellness. According to a recent report by financial wellness platform nudge, global financial well-being has taken a sharp hit in 2025, with optimism about money plunging from 60% in 2024 to just 29% in 2025 — nearing pandemic lows. Inflation, housing affordability and healthcare costs top the list of concerns, but the way these pressures are felt and addressed in the workplace and beyond varies significantly across generations. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Generational Financial Concerns Vary: Older employees aged 55 and above are significantly more concerned about inflation, with 71% identifying it as a top issue — the highest among any age group. In contrast, younger employees are more affected by housing affordability challenges and rising daily living costs. These younger workers often report lower financial literacy and confidence, and are notably more inclined to seek financial guidance from social media rather than from professional advisors.

2. Distinct Financial Behaviors Across Age Groups: Financial habits differ widely across generations. Younger workers tend to cut discretionary spending quickly, especially women, but may compromise long-term goals by reducing emergency or retirement savings. Mid-career employees are often caught in a “financial squeeze,” balancing mortgages, child care, and sometimes elder care, which can lead to overspending despite higher incomes. Older employees generally avoid high-risk investments but may struggle to adjust financial strategies, such as reallocating retirement contributions during volatile market periods.

3. Financial Literacy and Tailored Support Are Crucial: Strong financial literacy consistently leads to better financial behaviors, such as avoiding risky investments, using automated savings tools, and adapting spending strategies as needed. These skills also contribute to better mental well-being, with lower reported stress and anxiety levels. The report emphasizes the importance of tailored financial education based on career stage — from budgeting and credit building for younger workers to retirement planning and healthcare guidance for older employees — alongside communication strategies suited to each generation's preferences.