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- Daily Industry Report - January 22
Daily Industry Report - January 22
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 |
What Trump's first day orders mean for healthcare: Ditched drug models, pauses on rules and hiring
By Fierce Healthcare Staff, Dave Muoio, Noah Tong, Emma Beavins, Anastassia Gliadkovskaya - President Donald Trump made good on his campaign promises to kick off his second term in office with a tidal wave of executive orders. Either in front of cheering supporters at a Monday evening rally or later that night in the Oval Office, Trump signed dozens of executive orders and outlined other presidential actions spanning large swaths of the federal government. Read Full Article…
HVBA Article Summary
Regulatory Freeze and Healthcare Policy Reversal: The Trump administration imposed a 60-day regulatory freeze affecting healthcare regulations, halting Biden-era policies and delaying the implementation of pending rules, such as updates to the HIPAA Security Rule and telehealth prescribing regulations. This freeze gives the new administration time to evaluate, amend, or rescind prior regulations, while also leveraging tools like the Congressional Review Act to nullify Biden’s healthcare initiatives.
Rescission of Drug Pricing Reforms: Trump revoked a Biden executive order establishing three drug pricing models under the Center for Medicare & Medicaid Innovation, including efforts to cap costs for gene therapies and accelerate FDA approvals for drugs addressing unmet medical needs. The move was met with criticism from Democrats and healthcare advocates, who argue that it will result in higher prescription costs and hinder Medicaid's financial sustainability.
Federal Workforce Overhaul and HHS Restructuring: Trump initiated a government-wide hiring freeze and announced plans to streamline the federal workforce, directly impacting agencies like the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). The administration also restructured the federal hiring process, limiting DEI considerations and expediting hiring timelines. These changes could significantly impact public health initiatives and regulatory enforcement moving forward.
HVBA Poll Question - Please share your insightsDo your 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? |
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Our last poll results are in!
35.06%
of Daily Industry Report readers who participated in our last polling question when asked what their opinion of the FDA’s recent decision to reinstate Lilly’s Tirzepatide on the drug shortlist was, agree with the FDA’s decision and believe “Patients need access to this medication and there still isn’t enough supply.”
29.87% “somewhat agree. But [are] skeptical of compounding.” 25.98% remained “neutral,” while 9.09% disagreed with the decision.
Have a poll question you’d like to suggest? Let us know!
Trump rescinds Biden-era supplemental health benefits notice requirement
By Allison Bell - President Donald Trump gave issuers of critical illness insurance, hospital indemnity insurance and other forms of fixed-indemnity health insurance benefits a boost Monday. Read Full Article… (Subscription required)
HVBA Article Summary
Rescinding Fixed-Indemnity Insurance Regulations: The new Trump administration rescinded a Biden-era executive order that justified requiring marketers of fixed-indemnity health insurance to include a disclaimer distinguishing these policies from major medical insurance. This move eliminates a regulatory effort aimed at preventing misleading marketing practices related to supplemental health insurance products.
Broader Healthcare Policy Reversals: The executive order is part of a broader effort to revoke multiple Biden-era healthcare regulations, including those related to Medicare, the Affordable Care Act, and short-term health insurance policy limits. Additionally, it blocks initiatives aimed at improving prescription drug pricing and healthcare system efficiency.
Impact on Healthcare Markets and Regulation: While supporters argue that fixed-indemnity insurance provides financial relief for patients facing out-of-pocket costs, critics warn that removing disclosure requirements could mislead consumers and weaken the small-group insurance market. The ultimate impact of these executive actions will depend on legal challenges, regulatory interpretations, and further policy developments.
Healthcare’s Cybersecurity Crisis: Why Today’s Defenses Are Failing Against Evolving Threats
By George Pappas - Every healthcare system in the United States has its own level of vulnerability to cyberattacks. And each system, to the degree its resources and perception allow, is trying to eliminate those vulnerabilities. But many hospitals don’t have a clear picture of where and how they’re susceptible to attacks. Read Full Article…
HVBA Article Summary
Escalating Cyber Threats in Healthcare: Healthcare systems are struggling to meet even basic cybersecurity compliance standards while cybercriminals exploit vulnerabilities at an alarming rate. Major breaches—such as the Change Healthcare cyberattack affecting nearly a third of Americans, the Ascension attack disrupting patient care, and the record-breaking HCA Healthcare data breach—highlight the critical need for stronger defenses. However, hospitals often lack the necessary resources, expertise, and funding to keep pace with increasingly sophisticated cyber threats.
Regulatory and Industry Pressure to Strengthen Defenses: Governments and private insurers are pushing healthcare organizations to bolster their cybersecurity. The federal government has proposed an $800 million cybersecurity budget for HHS, and new state regulations, such as those in New York, mandate stronger protections beyond HIPAA requirements. Cyber insurers are also tightening their requirements, forcing hospitals to improve security or risk losing coverage. Despite these efforts, healthcare organizations face significant staffing shortages and budgetary constraints in hiring qualified cybersecurity professionals.
Managing Third-Party and Systemic Risks: Healthcare organizations are often breached through vulnerabilities in third-party vendor systems, making risk management essential. Effective strategies include conducting thorough vendor risk assessments, remediating vulnerabilities, and integrating security protocols into procurement processes. Given financial constraints and evolving threats, many healthcare systems may benefit from partnering with dedicated cybersecurity firms to enhance their defenses and compliance efforts. While no system is invulnerable, proactive investment in cybersecurity is crucial to protecting patient data and maintaining operational integrity.
New DEA Telehealth Prescribing Rules Released
By Center for Connected Health Policy - Last week the U.S. Drug Enforcement Administration (DEA) released three new rules impacting prescribing controlled substances via telehealth, including the long-awaited regulations regarding establishing a telehealth prescribing registration process that was first mandated by Congress back in 2008. Read Full Article… (Subscription required)
HVBA Article Summary
DEA’s Special Registration Framework for Telemedicine: The DEA has proposed a special registration framework allowing three types of telemedicine registrations: Telemedicine Prescribing Registration (for Schedule III-V controlled substances), Advanced Telemedicine Prescribing Registration (for Schedule II-V controlled substances by specialized practitioners), and Telemedicine Platform Registration (for online platforms dispensing Schedule II-V controlled substances). Registrants must comply with electronic prescribing, state registrations, and Prescription Drug Monitoring Program (PDMP) checks. The proposal seeks to regulate direct-to-consumer telemedicine platforms, addressing concerns about potential misuse and prescribing incentives.
Expansion of Buprenorphine Treatment via Telemedicine: A final rule now permits DEA-registered providers to prescribe buprenorphine for opioid use disorder (OUD) via telemedicine, including audio-only encounters. Providers must review state PDMP data and may prescribe an initial six-month supply without an in-person visit. The rule removes prior in-person visit requirements for continued prescribing but mandates pharmacist verification of patient identity. These changes aim to enhance access to OUD treatment while maintaining oversight of controlled substance prescriptions.
VA Practitioners’ Authority to Prescribe via Telemedicine: The final rule grants VA-employed practitioners the authority to prescribe controlled substances via telemedicine without prior in-person evaluation, provided another VA practitioner has previously conducted one. Practitioners must review the VA electronic health record (EHR) and PDMP data before prescribing. If PDMP access is unavailable, prescriptions are limited to a seven-day supply. The rule applies only to VA-employed practitioners, with the DEA indicating future evaluations for broader non-VA telehealth applications.
How Healthcare Leaders Reacted to the 15 Additional Drugs Selected for Medicare Negotiation Program
By Marissa Plescia - The U.S. Department of Health and Human Services unveiled 15 additional drugs chosen for the Medicare Drug Price Negotiation Program on Friday. Many healthcare leaders are applauding the list of selected drugs, while drug manufacturers are coming out against it. Read Full Article…
HVBA Article Summary
Expansion of Medicare Drug Price Negotiation: The Inflation Reduction Act enables the federal government to negotiate drug prices with pharmaceutical companies. The first set of 10 drugs was announced in 2023, with prices taking effect in 2026. An additional 15 drugs, including Ozempic, Wegovy, and Xtandi, were added to the program, with negotiated prices set to go into effect in 2027. These drugs accounted for $41 billion in Medicare Part D costs over the past year, impacting millions of patients with chronic conditions.
Pharmaceutical Industry Opposition: Drug manufacturers, including Pfizer and Novo Nordisk, strongly oppose the negotiation program, arguing that it imposes government-mandated price controls that could stifle innovation and discourage investment in new drug development. Several pharmaceutical companies, including Novo Nordisk and Teva Pharmaceuticals, have filed lawsuits challenging the program’s legality and implementation.
Support from Advocacy Groups and Healthcare Leaders: Organizations such as AARP and Patients for Affordable Drugs praise the negotiation program, asserting that it will reduce prescription costs for seniors and Medicare beneficiaries. Healthcare leaders, including knownwell CEO Brooke Boyarsky Pratt, emphasize the importance of making critical medications like Ozempic and Wegovy more affordable, potentially expanding access to obesity treatments nationwide.
Trump Changes Health Care Enrollment for 24 Million People: Who's Impacted
By Robert Thorpe - In a move that has significant implications for millions of Americans, President Donald Trump has issued a series of executive orders, some of which target the healthcare marketplace. These changes are expected to affect the enrollment process and medical insurance coverage for an estimated 24 million people. Read Full Article… (Subscription required)
HVBA Article Summary
Millions Could Lose Affordable Coverage: The rollback of key ACA provisions, including extended enrollment periods and enhanced subsidies, may lead to a decrease in health insurance coverage, particularly among low-income individuals and those in non-expansion states.
Increased Barriers to Enrollment: The elimination of Biden-era policies that expanded enrollment windows and provided additional funding for third-party assistance could make it harder for people experiencing unexpected life changes—such as job loss or relocation—to sign up for health insurance.
Broader Policy Implications: These executive orders signal a significant shift in federal healthcare policy, reflecting a broader effort by the Trump administration to reduce government intervention in health insurance markets, which could reshape the future of healthcare accessibility in the U.S.
Public divided on Trump health agenda, strong support for price transparency
By Alan Goforth - Both political parties outlined their priorities for the nation’s health care policy during last year’s presidential and congressional elections. With a new Congress in place and the Trump administration about to assume power, the public shared its own opinions in a new KFF Health Tracking Poll. Read Full Article… (Subscription required)
HVBA Article Summary
Bipartisan Support for Health Care Oversight and Regulation: A majority of Americans, regardless of political affiliation, support increasing health care price transparency (61%), setting stricter limits on chemicals in the food supply (58%), and regulating health insurance approval processes (55%). Expanding Medicare drug price negotiations also garners strong public backing, particularly among Medicare enrollees.
Public Opposition to Medicaid Cuts and Restrictive Health Policies: While the public supports regulatory measures, there is significant opposition to reducing federal funding for Medicaid, limiting abortion access, and cutting funds for schools requiring vaccinations. Less than 15% of Americans consider these issues a top priority, with at least 40% stating they should not be pursued.
Concerns Over Government Spending and Efficiency Efforts: Although three-fourths of the public believe reducing fraud and waste in government health programs could lower federal spending, many fear such efforts may lead to cuts in Medicare and Medicaid benefits. Additionally, nearly half of Americans feel the government isn’t spending enough on these essential health programs.
5 ways brokers can brighten the future for their clients
By Kraig Kleeman - Being a benefits broker and adviser today means doing more than ticking boxes. It's about crafting benefits that make the employee populations they serve say, "Wow, they actually get me." Read Full Article… (Subscription required)
HVBA Article Summary
Personalized Benefits Drive Employee Engagement: Employees today expect more than just traditional health insurance and retirement plans. Customizing benefits to include wellness programs, mental health support, and financial planning tools leads to higher employee satisfaction and retention. Brokers can add value by helping employers tailor benefits to their workforce's specific needs, whether they are multigenerational, remote, or on-site.
Mental Health Benefits Are a Competitive Advantage: Mental health has become a top priority for employees, and companies that offer robust support—such as therapy sessions, stress management tools, and employee assistance programs—see improved productivity and lower turnover. Brokers should advocate for and facilitate mental health initiatives, ensuring their clients remain competitive and attractive to top talent.
Regulatory Expertise Strengthens Client Trust: The HR and benefits landscape is constantly evolving with new compliance mandates and data privacy regulations. Employers often struggle to keep up, making brokers invaluable as strategic advisors. By staying ahead of regulatory changes and proactively guiding clients, brokers can help companies avoid costly mistakes and build long-term, trusted relationships.