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- Daily Industry Report - February 14
Daily Industry Report - February 14

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 | Robert S. Shestack, CCSS, CVBS, CFF |
RFK Jr. confirmed as HHS secretary
By Madeline Ashley - The Senate voted 52-48 on Feb. 13 to confirm Robert F. Kennedy Jr. as HHS secretary. The action followed a 53-47 procedural vote that advanced his nomination on Feb. 12. He needed 51 votes to secure the confirmation. Sen. Bill Cassidy, R-La., who previously wavered in his support of Mr. Kennedy ultimately voted in favor. Sens. Susan Collins, R-Maine, and Lisa Murkowski, R-Alaska, who had also expressed concerns, backed him as well. Read Full Article…
HVBA Article Summary
Vaccine Concerns and Confirmation Process: Despite concerns over his vaccine skepticism, Robert F. Kennedy Jr. was confirmed as Secretary of Health and Human Services after a closely contested Senate vote. During his confirmation hearings, he was questioned on various healthcare issues, including Medicare, Medicaid, prescription drug prices, and mental healthcare.
Healthcare Policy Priorities: Kennedy's healthcare agenda focuses on reducing chronic disease by emphasizing prevention-based care, food policy reforms, and environmental health. He advocates shifting Medicare funds toward healthy behaviors, restricting direct-to-consumer drug advertising, and reforming the Medicare physician fee schedule.
Industry Reactions and Expectations: Healthcare leaders expressed mixed reactions to Kennedy’s confirmation. While many, including hospital and pharmacy organizations, welcomed collaboration on key healthcare issues, public health advocates emphasized the need to uphold strong vaccine policies and maintain public trust in immunization programs.
HVBA Poll Question - Please share your insightsWhen offering voluntary products to employees during Open Enrollment, which of the following is the most well-received? |
Our last poll results are in!
43.48%
of Daily Industry Report readers who participated in our last polling question when asked if their “employer groups offer a program to their employees, providing them a way to access the legal, financial, and medical resources needed to provide care and respond effectively to unexpected emergencies for themselves and their loved ones,” responded with “No. I was unaware that a solution like this existed.”
27.54% are unsure and are “familiar with solutions like this but don’t currently bring this to [their] clients.” 20.77% are somewhat familiar with these solutions “but need more details to feel comfortable introducing them,” while just 8.21% currently offer solutions like this to their clients.
Have a poll question you’d like to suggest? Let us know!
Republicans target $880B in healthcare cuts; hospitals push back
By Alan Condon - House Republicans released a budget blueprint on Feb. 12 that orders the Energy and Commerce Committee, which oversees Medicare and Medicaid, to find $880 billion in savings from fiscal years 2025 through 2034. Read Full Article…
HVBA Article Summary
Budget Cuts and Healthcare Programs at Risk: The House budget resolution calls for $880 billion in cuts over a decade, with Medicaid and ACA subsidies being primary targets. Despite assurances that Medicare will be protected, the sheer magnitude of the reductions makes significant cuts to federal healthcare programs almost unavoidable. Experts, including KFF’s Larry Levitt, highlight that eliminating ACA Medicaid expansion funding and enforcing work requirements could account for most of the proposed savings.
Industry Leaders Warn of Consequences: Healthcare leaders, including AHIP CEO Michael Tuffin and AHA President Rick Pollack, warn that Medicaid cuts would lead to loss of coverage for low-income individuals, increased emergency room visits, and higher long-term costs. Essential hospital groups and policy advocates emphasize that slashing Medicaid funding would disproportionately impact vulnerable populations, including children, seniors, and individuals with disabilities.
Alternative Cost-Saving Approaches: While lawmakers focus on cutting Medicaid, industry experts argue for alternative reforms to curb healthcare spending without reducing coverage. Suggestions include site-neutral payment reforms, addressing drug patent abuses that keep prices high, and broader cost-efficiency measures. Leaders in the healthcare sector stress the need for sustainable policies that preserve essential services and maintain access to care for millions of Americans.
Why the health care industry is letting RFK Jr. cruise to confirmation
By Daniel Pyne - Robert F. Kennedy Jr.’s expected Senate confirmation on Thursday to lead the nation’s health agencies threatens upheaval for America’s $4 trillion health care industry. The industry is doing little and hoping for the best. Read Full Article…
HVBA Article Summary
Muted Industry Response: Despite Kennedy's accusations against the healthcare industry and promises to overhaul federal health policy, major organizations—including the American Medical Association and the Pharmaceutical Research and Manufacturers of America—have remained largely silent. This reluctance to oppose him publicly stems from concerns that speaking out could be ineffective or even counterproductive.
Strategic Silence and Political Calculations: Healthcare groups are prioritizing their legislative agendas, such as Medicare reimbursement adjustments and pharmacy benefit manager reforms, over direct opposition to Kennedy. They hope to navigate his tenure by addressing specific policy issues rather than confronting his nomination outright.
Risks and Uncertainty: While some industry leaders and professionals have spoken out against Kennedy, many fear that open opposition could provoke backlash from his populist movement. At the same time, concerns persist over his stance on vaccines, his understanding of health policy, and the potential consequences of his leadership for public health and industry stability.
Dozens of new obesity drugs are coming: these are the ones to watch
By Elie Dolgin - For Kristian Cook, every pizza box he opened was another door closed on the path to overcoming obesity. “I had massive cravings for pizza,” he says. “That was my biggest downfall.” At 114 kilograms and juggling a daily regimen of medications for high cholesterol, hypertension and gout, the New Zealander resolved to take action. In late 2022, at the age of 46, Cook joined a clinical trial that set out to test a combination of the weight-loss drug semaglutide — better known by its brand names, Ozempic or Wegovy — and an experimental drug designed to preserve muscle while shedding fat. Read Full Article… (Subscription required)
HVBA Article Summary
Addressing Muscle Loss in Anti-Obesity Treatments: While GLP-1 agonists like semaglutide and tirzepatide effectively promote weight loss, they also contribute to muscle loss, which can negatively impact metabolism and overall health. Emerging therapies such as bimagrumab are designed to counteract this effect by promoting muscle retention, providing a more balanced approach to weight management.
Next-Generation Obesity Medications: A wave of new anti-obesity drugs is in development, with several expected to hit the market within the next few years. These medications target a broader range of biological pathways beyond GLP-1, including dual and triple receptor agonists, cannabinoid receptor inhibitors, and muscle-preserving agents, offering more tailored solutions for diverse patient needs.
Shaping the Future of Obesity Treatment: The rapid expansion of obesity drug research, fueled by the commercial success of semaglutide and tirzepatide, is paving the way for more effective and sustainable treatment options. As pharmaceutical companies refine their approaches, the focus is shifting toward reducing side effects, improving long-term outcomes, and integrating muscle-preserving strategies to create healthier weight-loss solutions.
The Medical Swamp is Worse Than I Described It
By William H Bestermann Jr. MD - In my last post, I quoted extensively from an article by Dr. Donald Berwick from the Journal of the American Medical Association. The title of his article was Salve Lucrum: The Existential Threat of Greed in US healthcare. His article began with a word picture: “In the mosaic floor of the opulent atrium of a house excavated at Pompeii is a slogan ironic for being buried under 16 feet of volcanic ash: Salve Lucrum, it reads, “Hail, Profit.” Read Full Article…
HVBA Article Summary
Financial Interests Over Public Health: The case of the family doctor’s preventive cardiology program illustrates a fundamental issue in American healthcare: financial incentives prioritize hospital revenue over patient health. The dismantling of effective, life-saving programs is not an isolated event but a systemic practice aimed at protecting hospital profits and executive salaries.
The Consequences of Systemic Negligence: The actions of hospital executives, such as deliberately shutting down cost-saving, preventative care initiatives, result in unnecessary deaths and disabilities. This structured neglect prioritizes financial stability over human lives, raising serious ethical and legal concerns, including the argument that such decisions amount to negligent homicide.
A Call for Reform: To address these systemic failures, the focus must shift toward building and supporting outpatient primary care teams dedicated to chronic disease management and prevention. Change requires data-driven solutions, transparency, and a shift in incentives that rewards health outcomes rather than hospital profits.
Kaiser, Tufts lead network to promote food's medicinal benefits
By Ernie Mundell - Boston-based Tufts University and Oakland, Calif.-based Kaiser Permanente have partnered to form the Food Is Medicine National Network of Excellence, a national network focused on addressing food insecurity and improving community health. Read Full Article…
HVBA Article Summary
Development of Best Practices: The network will establish guidelines for implementing food-based interventions such as medically tailored meals, produce prescriptions, and nutrition education in healthcare and community settings.
Collaboration Among Industry Leaders: Founding members, including major health organizations like Kaiser Permanente, Tufts, Blue Cross and Blue Shield of North Carolina, CVS Health, and others, will work together to scale evidence-based nutritional interventions and address food insecurity.
Assessment and Policy Expansion: The initiative aims to evaluate the health and cost benefits of Food Is Medicine programs, share findings, and advocate for policy changes to expand their reach and impact.
Self-insured employer plans create health cost data gap, working group contends
By Allison Bell - Employers may be contributing to high health care costs by refusing to feed claim data into state claim databases. A working group organized by the Aspen Institute cites lack of self-insured employer plan support as one of the factors hurting state efforts to hold down health care costs. Read Full Article… (Subscription required)
HVBA Article Summary
Enhancing Market Transparency with All-Payer Claims Databases: The working group emphasizes that state all-payer claims databases (APCDs) can help regulators address rising healthcare costs by providing a clearer picture of market dynamics. However, a key limitation is that many states cannot require self-insured employer-sponsored plans to submit data, leaving significant gaps in coverage transparency.
Strengthening Competition to Lower Costs: Better access to claims data could enable more price-based competition among healthcare providers by empowering consumers with improved shopping tools. Additionally, the working group suggests policy measures to curb excessive consolidation, including reducing financial incentives for mergers, reversing problematic consolidations, and preventing secretive contract negotiations that reduce price competition.
Addressing Anti-Competitive Contracting Practices: The working group calls for greater scrutiny of contract provisions that limit competition, such as anti-steering clauses (which prevent plans from directing patients to high-value care) and exclusive contracting clauses (which restrict insurers from working with competing providers). Employers and fiduciaries should have access to contract terms to ensure fairer and more transparent negotiations in healthcare markets.

Walgreens ordered to pay $987M in COVID-19 testing dispute
Alexandra Murphy - A federal judge ruled that Walgreens must pay $987 million to the virtual care company PWNHealth, upholding an arbitration award following a breach-of-contract dispute. Read Full Article…
HVBA Article Summary
Alleged Breach of Contract: PWNHealth claims Walgreens bypassed their agreement by using its own pharmacists to order COVID-19 tests instead of consulting with PWNHealth, as initially established.
Branding Dispute and Legal Action: PWNHealth also alleges Walgreens improperly continued to display its branding on the testing website, leading to a 2022 arbitration filing for breach of contract and other claims.
Court Ruling Against Walgreens: Walgreens challenged the arbitration decision in federal court, seeking to cap damages at $79 million, but the judge upheld the original arbitration award.