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- Daily Industry Report - February 19
Daily Industry Report - February 19

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 |
Kennedy Says ‘Nothing’ Off Limits in Scrutinizing Chronic Disease
By Sheryl Gay Stolberg and Christina Jewett - Health Secretary Robert F. Kennedy Jr., in his first address to employees of the Department of Health and Human Services, said a new presidential commission would scrutinize childhood vaccine schedules, psychiatric medications and other frequent targets of his suspicion as part of his efforts to fight chronic disease. Read Full Article… (Subscription required)
HVBA Article Summary
Kennedy’s Call for Transparency and Open Inquiry: Mr. Kennedy emphasized his commitment to "radical transparency" in scientific and public health discourse, vowing to scrutinize topics he believes have been ignored or suppressed. However, his approach may face resistance from institutions bound by confidentiality rules, such as the FDA and pharmaceutical companies.
Challenges to Scientific Establishment and Expert Panels: He signaled a push to reform advisory committees in federal health agencies by reducing or balancing conflicts of interest, potentially reshaping how scientific guidance is given. Critics, such as Dr. Paul Offit, argue that Kennedy’s stance implies distrust of prior scientific consensus and regulatory bodies.
Political and Administrative Shake-ups: His speech came in the wake of mass firings within key health agencies, part of a broader effort to shrink the federal government. While Kennedy did not address the job cuts directly, his arrival has unsettled many in the scientific community, given his history of criticizing these institutions.
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!
Health agencies lose staff members in key areas as Trump firings set in
By Will Stone and Pien Huang - Termination letters landed in the mailboxes of hundreds of employees at the Centers for Disease Control and Prevention, the Food and Drug Administration and the National Institutes of Health over the weekend, as the Trump administration moved ahead with firings announced verbally Friday. Read Full Article…
HVBA Article Summary
Mass Layoffs at Federal Health Agencies: Over 2,000 employees across the CDC, NIH, and FDA were laid off, with many terminations citing "inadequate performance" despite strong work records. Most affected staff were in probationary periods, leaving many fearful of additional cuts.
Impact on Public Health and Safety: The layoffs hit key public health roles, including scientists responding to outbreaks, experts ensuring medical device safety, and specialists preventing zoonotic disease transmission. Experts warn these cuts could weaken national outbreak response and regulatory oversight.
Uncertain Justification and Long-Term Consequences: While officials cite restructuring and efficiency as reasons for the cuts, some argue the layoffs won’t save taxpayer money and may hinder critical health services. Experts fear long-term damage to public health training and workforce development.
Texas could keep health insurers from making patients use insurer-owned PBMs
By Allison Bell - Texas could stop health insurers or other coverage issuers in the Lone Star State from requiring patients to use the carriers' own pharmacy benefit managers. Texas state Rep. Cody Harris, R-Palestine, Texas, last week introduced a bill that could prohibit a health insurer, a health maintenance organization or any other health benefit plan issuer with a financial interest in a PBM from requiring a plan participant to use the PBM. Read Full Article… (Subscription required)
HVBA Article Summary
Texas' Legislative Push Against PBM Preemption: Texas, led by Harris, has been at the forefront of efforts to prevent the Employee Retirement Income Security Act (ERISA) from preempting state regulation of pharmacy benefit managers (PBMs), particularly in their dealings with self-insured employer health plans. This includes passing laws like the anti-PBM-steering law, which aims to curb practices that favor PBM-affiliated pharmacies.
Legal and Industry Debate Over PBM Regulations: The ongoing dispute pits pharmacies and some employers against large PBMs, with critics arguing that PBMs use their market power to stifle competition and prioritize their own financial interests over cost savings for employers and patients. PBMs, on the other hand, argue that they play a crucial role in reducing prescription drug costs and that opposition to their practices comes from competing industry players.
Potential National Implications: If Texas succeeds in enforcing PBM regulations on self-insured employer health plans, it could set a precedent for other states and healthcare provider groups seeking similar oversight. The U.S. Supreme Court's consideration of similar rules in Oklahoma could further shape the future of state versus federal authority in regulating self-funded health plans.
What Tufts, Kaiser Permanente and Others Hope to Achieve with the Food is Medicine National Network of Excellence
By Marissa Plescia - There is both a health case and a business case for why a balanced diet is important. Lack of good nutrition is the number one driver of poor health outcomes in the U.S. And suboptimal diets result in $1.1 trillion in annual costs to the economy, accounting for both healthcare expenses and lost productivity. Read Full Article…
HVBA Article Summary
Formation of the Food is Medicine National Network of Excellence: Major healthcare organizations, including Kaiser Permanente, Elevance Health, and Highmark Health, have come together to launch a national network aimed at advancing food-as-medicine initiatives. This coalition seeks to develop and share best practices in using nutrition-based interventions to address chronic diseases and improve health outcomes.
Focus on Evidence-Based Food Interventions: The network's primary goal is to assess the effectiveness of food-as-medicine strategies, such as medically tailored meals and produce prescriptions. Through research and pilot programs, members will analyze the impact of these interventions on patient health and healthcare costs, with the intent of scaling successful models nationwide.
Engagement with Policymakers and Industry: The network aims to influence national food and health policies by sharing research findings with healthcare stakeholders, government officials, and the public. While some experts emphasize the need for clear nutrition standards and accountability for food companies, others highlight the importance of collaboration across the food sector to drive systemic change.
AI will transform parts of healthcare — but slow adoption and sales cycles could impede startups
By Taylor Soper - The rise of generative AI and other automation technologies will surely create efficiencies within the $4.5 trillion healthcare industry. But for early stage startups taking a swing at digital health, it won’t be easy cracking into a sector that’s highly regulated and historically slow to adopt new technologies. Read Full Article…
HVBA Article Summary
Slow Adoption of Innovation in Healthcare: Nader Naini of Frazier Healthcare Partners emphasizes the slow-moving nature of the healthcare industry, likening it to “turning a battleship in a lake.” This sluggish pace frustrates tech investors accustomed to rapid adoption, particularly in sectors like AI and digital health.
Financial Constraints Limit Technology Adoption: Many healthcare organizations struggle financially, making it difficult for them to invest in and integrate new technologies. This creates challenges for venture-backed digital health startups, which often rely on quicker adoption cycles to remain viable.
Growing Investment and M&A Activity: Despite these challenges, venture capital interest in healthcare remains strong, with AI-driven startups capturing a significant portion of funding. Seattle’s healthcare startup ecosystem is also seeing increased M&A activity, while Frazier Healthcare focuses on established businesses where automation and AI can drive efficiency.
Pain biotech Latigo eyes up to $150M raise following Vertex's landmark FDA nod
By Kyle LaHucik - Latigo Biotherapeutics, a non-opioid pain biotech looking to ride the waves created by Vertex Pharmaceuticals’ pain drug approval last month, is targeting up to $150 million in a new funding round, according to a new SEC filing on Friday. Read Full Article… (Subscription required)
HVBA Article Summary
Latigo Biotech's Ongoing Fundraising Efforts: The company has secured $50 million in a new funding round, following its $135 million launch investment from major venture capital firms like Westlake, Foresite, 5AM Ventures, and Corner Ventures. CEO Nima Farzan emphasized that Latigo is continuously seeking additional capital to support its drug development pipeline.
Advancements in Leadership and Clinical Trials: Since its launch, Latigo has made significant leadership changes, including appointing a new CEO, a chief medical officer, and a finance chief. It has also initiated another Phase 1 clinical trial and brought on former Horizon CEO Tim Walbert as board chair, strengthening its strategic direction.
Positioning in the Non-Opioid Pain Market: Latigo's lead programs, LTG-001 (Phase 2) and LTG-305 (Phase 1), target the NaV sodium channel for non-addictive pain relief, similar to Vertex’s newly approved Journavx. The company sees an opportunity to differentiate itself by improving drug onset times and leveraging industry momentum to challenge opioid use in low-risk procedures.
By Alan Goforth - Chronic conditions are silent robbers in the workplace, stealing employee wellbeing, productivity and job satisfaction. “Though businesses may be generally aware that this issue affects their workforce, the day-to-day impacts on workers and their jobs are often hidden, obscuring the true need for support,” according to a new report from the Harvard T.H. Chan School of Public Health and the de Beaumont Foundation. Read Full Article… (Subscription required)
HVBA Article Summary
Chronic Health Conditions Are Often Hidden in the Workplace: A significant portion of employees with chronic conditions do not disclose their health status to their employers, leading to potential challenges in receiving workplace accommodations and support.
Balancing Work and Health Care Is a Struggle: Many employees with chronic conditions must manage their health during work hours, often sacrificing medical care or missing professional opportunities due to their conditions.
Employers Have an Opportunity to Improve Support: Despite the need for flexibility and accommodations, many employees feel their workplace lacks strong support for measures like remote work, flexible scheduling, and paid leave, highlighting an opportunity for organizations to enhance employee well-being and productivity.

America's priciest health conditions
Paige Twenter - The cost of healthcare in the U.S. varies dramatically based on condition and geography, with some states spending thousands more per capita than others, according to research published Feb. 14 in JAMA Network. Read Full Article…
HVBA Article Summary
Healthcare Spending Trends and High-Cost Conditions: The study analyzed extensive insurance claims and facility records to estimate healthcare spending across U.S. counties, capturing 76.6% of personal healthcare expenditures from 2010 to 2019. The most expensive health conditions included Type 2 diabetes ($143.9 billion), joint pain and osteoporosis ($108.6 billion), and oral disorders ($93 billion).
Fastest-Growing Health Expenditures: Certain health conditions experienced rapid annual per capita spending growth, with autism spectrum disorders leading at 13%, followed by opioid use disorders (9%), alcohol use disorders (7%), and other substance use disorders (6%).
Regional Disparities in Healthcare Costs: The study highlighted significant variations in healthcare spending across states, with Idaho ($6,028), Utah ($6,147), and New Mexico ($6,368) having the lowest per capita costs, while Alaska ($9,282), New York ($9,115), and Massachusetts ($9,097) had the highest. Researchers suggest these disparities reflect differing efficiencies in healthcare delivery, potentially offering insights for national healthcare modernization.