Health benefits firms hope for One Big Beautiful 'Health' Bill

By Allison Bell - Health account firms are hoping that Congress will find a way to save at least some of the 11 health account provisions that showed up in an early version of the One Big Beautiful Bill Act but were left out of the version that President Donald Trump signed into law. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Missed Legislative Opportunities: Some proposed provisions—such as expanding how Health Savings Accounts (HSAs) and Flexible Spending Arrangements (FSAs) can be used, and creating a permanent CHOICE (Custom Health Option and Individual Care Expense) arrangement—were left out of recent legislation, limiting immediate changes to how individuals can manage their healthcare expenses.

2. CHOICE Arrangement Stalled Federally, Inactive at State Level: While CHOICE arrangements could allow employers to exit direct health plan management by giving employees cash for individual coverage, there is currently no clear legislative path forward in Congress. States with ACA exchanges have shown support for similar models like ICHRAs but are waiting on federal direction before acting.

3. Incremental Implementation of New HSA Rules: Some new rules from the One Big Beautiful Bill (OBBBA)—such as expanded HSA use for telehealth, direct primary care, and certain ACA plan types—are already being adopted by firms like Lively. Broader adoption may take time, with education playing a critical role in encouraging the 5–7 million people with bronze or catastrophic plans to open and fund HSAs.

Reconciliation bill’s effects on healthcare provisions

By Susan Morse - Medicaid cuts have been a central focus for healthcare from passage of the One Big Beautiful Bill Care Act, but there are other parts to the bill that affect providers. “This legislation will cause 11.8 million Americans to be displaced from their healthcare coverage as they move from insured to uninsured status,” American Hospital Association President and CEO Rick Pollack said after the passage of the bill in the Senate. Read Full Article…

HVBA Article Summary

1. Rural and Underserved Areas Could Face Greater Strain: The bill is expected to increase uncompensated care for hospitals, which may reduce their financial ability to provide broad services. This could lead to service line and staff reductions, especially in rural and underserved areas, resulting in longer emergency department wait times, reduced availability of essential services, and the potential closure of some healthcare facilities.

2. Significant Funding and Tax Policy Changes Are Introduced: While the bill creates a $50 billion rural health program to support rural healthcare providers between 2026 and 2030, it also limits states’ ability to use provider taxes to draw down additional federal Medicaid funding. Over time, this could reduce Medicaid reimbursements, potentially straining the budgets of hospitals that rely heavily on these payments.

3. Key Provisions Removed Due to Senate Rules: Several policy measures initially included in the House version of the bill—such as those addressing Medicaid spread pricing by pharmacy benefit managers and the continuation of silver loading in ACA insurance plans—were dropped due to the Senate's Byrd Rule. Their removal may affect drug pricing transparency, premium subsidies for low-income individuals, and could lead to a decline in ACA enrollment.

200% drug tariffs loom as Trump pushes reshoring of pharma manufacturing

By Alan Goforth - The Trump administration is threatening to impose large tariffs on drugs imported into the United States, although they wouldn’t take effect for at least a year. “If they have to bring the pharmaceuticals into the country, the drugs and other things into the country, they’re going to be tariffed at a very, very high rate, like 200%,” Trump told reporters following a Tuesday Cabinet meeting. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Potential Drug Tariffs Delayed: The administration intends to delay the implementation of pharmaceutical tariffs for approximately a year to a year and a half, providing companies time to adapt or shift operations. This phased approach is designed to avoid immediate disruption while giving the administration time to review research on the economic and supply chain impacts of such tariffs.

2. National Security and Domestic Manufacturing Focus: Reshoring drug manufacturing to the U.S. is being prioritized as a national security measure. The administration is particularly focused on reducing reliance on foreign production—especially from countries like Ireland, which has a significant trade surplus with the U.S. due largely to pharmaceutical exports. Some drugmakers have already responded with announcements of large-scale investments in U.S. manufacturing facilities.

3. Industry Concerns and Ongoing Investigation: Drug companies have expressed concern that tariffs could destabilize international supply chains and increase costs for patients, potentially worsening existing drug shortages. In response, the administration launched a Section 232 investigation to assess the national security implications of pharmaceutical imports, including the concentration of supply from a few countries and the potential for expanding domestic production capacity.

AI Won’t Fix American Healthcare on Its Own, But It Can Help Us Close the Gap

By Nick Culbertson - America spends more than any other country on healthcare, nearly twice the per capita amount of other developed nations. And yet, our outcomes are consistently worse. We face higher maternal mortality rates, lower life expectancy, and alarming disparities in care based on race, geography, and income. Read Full Article…

HVBA Article Summary

1. AI Has the Potential to Improve Healthcare—but It’s Not a Cure-All: Artificial intelligence offers valuable tools to help alleviate some of healthcare’s most pressing issues, such as limited access, rising costs, administrative inefficiencies, and delayed diagnoses. However, it cannot replace the need for systemic reform. Success depends on responsible implementation, thoughtful design, and integration into broader efforts to improve care delivery.

2. Real-World Applications of AI Show Tangible Benefits: Startups like Embryoxite, which personalizes fertility treatment, and Aidoc, which accelerates emergency diagnostics, demonstrate that AI can make a measurable difference in patient outcomes and healthcare efficiency. These examples prove that AI, when focused on solving concrete problems, is already contributing to more accessible, timely, and effective care in ways that go beyond theory.

3. Equity and Real-World Relevance Must Guide Innovation: For AI to have lasting impact, it must be designed with the realities of underserved communities in mind. This includes training models on diverse datasets, validating tools in a variety of care environments, and fostering collaborations between startups, clinicians, and health systems. Supporting innovation in places like Baltimore—where real-world challenges meet strong institutional resources—can help ensure AI advances are inclusive, practical, and scalable.

How Trump's One Big Beautiful Bill Act will increase employer healthcare costs

By Lee Hafner - Employers should expect to see hikes to their healthcare costs as a result of upcoming cuts to Medicaid outlined in the Trump administration's One Big Beautiful Bill, passed into law at the start of July. Preparing for the ripple effects now can help benefit leaders reduce the connected negative impact on their workforce. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Major Cuts to Medicare and Medicaid Will Disrupt Coverage and Costs: Beginning in 2026, federal cuts totaling $500 billion from Medicare and nearly $1 trillion from Medicaid are projected to eliminate healthcare coverage for around 12 million people. These reductions will significantly lower provider reimbursements, forcing hospitals and healthcare systems to seek compensation through commercial insurance markets. As a result, employers and private insurers are likely to face rising premiums and increased financial pressure to fill the reimbursement gap.

2. Employers Must Prepare for a Rise in Uninsured Employees: With a likely increase in uninsured workers due to public coverage rollbacks, employers should act now to evaluate where their employees currently seek care — especially for high-cost procedures — and guide them toward higher-value, lower-cost providers. Strategies such as leveraging Centers of Excellence (COEs) can help employers maintain quality care while avoiding the need to raise out-of-pocket costs or monthly premiums. Planning ahead can reduce long-term risks and promote better health outcomes across the workforce.

3. Telehealth and Supplemental Benefits Offer Cost-Relief Options: Employers can help offset the financial burden on employees by expanding access to telehealth services and offering voluntary benefits such as hospital indemnity, accident, and critical illness insurance. These tools can help reduce the impact of catastrophic medical expenses and support more affordable care. Tailoring these offerings based on workforce health data and demographics will ensure maximum effectiveness. Transparent communication and thoughtful planning will be critical for managing the transition smoothly and keeping employees engaged and informed.

Caregivers Can Now Call 211 for Help in 10 New States

By Mythili Sampathkumar - Caregivers often feel overwhelmed. Balancing work, child care, their own health issues and caregiving for a loved one can leave them floundering in a sea of responsibilities. But a program to help caregivers and others find state and local resources to support them is expanding. By calling 211, caregivers can connect to specialists who can help them find resources for food, clothing, medical care and transportation assistance in their community. Read Full Article…

HVBA Article Summary

1. Expansion of Caregiver Support Through 211: AARP and United Way have broadened their Caregiver Support Program to operate in 80 call centers across 25 states and Puerto Rico. These centers are staffed with AARP-trained specialists accessible through the 211 hotline, aimed at helping caregivers navigate complex systems and access local support services more efficiently.

2. Significant Unpaid Caregiving Labor and Costs: An estimated 48 million caregivers in the United States provide around $600 billion in unpaid labor each year. In addition to their time and effort, many caregivers face substantial personal financial burdens, spending between $7,200 and $10,000 annually out of pocket, with costs often influenced by work-related caregiving demands.

3. Benefits and Limitations of the 211 Program: The 211 service offers caregivers confidential, around-the-clock assistance in 180 languages, connecting them to vital community resources such as food banks, mental health services, and transportation. While highly valuable, the program’s effectiveness can be limited in areas with fewer available resources or significant access barriers, such as high costs or lack of transportation.

Beyond the Benefits Menu: Guiding Smarter Employee Choices

By Eddie Pinto - Traditionally, employee benefits have been treated as isolated offerings rather than as part of a holistic framework. Employers select health plans, retirement options, and wellness programs with care but present them as standalone offerings to employees — without a unified narrative to tie them together. This fragmented approach can lead to inefficiencies, lower engagement, and increased costs. In reality, benefits are interconnected decisions that significantly influence an employee's overall well-being, financial security, and perception of their employer. Read Full Article…

HVBA Article Summary

1. Shift Away from One-Size-Fits-All Benefits: Employers are moving away from standardized benefits packages as today's workforce spans various life stages, priorities, and financial circumstances. Many employees struggle to navigate complex offerings, resulting in confusion and suboptimal choices, with over half reporting regret about their benefits selections during open enrollment.

2. Low Engagement Despite Rising Costs: In 2024, average employer-sponsored health premiums rose significantly—7% for family coverage and 6% for single coverage—yet employees spent an average of just 18 minutes enrolling. This mismatch points to a disconnect between the value of benefits provided and employees’ ability to engage with them meaningfully.

3. AI and Personalization to Improve Outcomes: Modern AI-powered tools and decision-support platforms offer hyper-personalized guidance, simulate real-life scenarios, and simplify the enrollment experience. These solutions help both employees and HR professionals by boosting confidence, improving plan selection, and automating administrative tasks, provided they are designed with transparency, trust, and human-centered intent.