Court rejects Novartis bid to block Missouri’s unlimited 340B contract pharmacy law

By Ella Jeffries – A federal appeals court has upheld Missouri’s law protecting 340B contract pharmacies, rejecting Novartis’ bid to block enforcement of the statute while its lawsuit proceeds. Read Full Article...

HVBA Article Summary

1. 8th Circuit Affirms Missouri Law: In a July 1 opinion, the U.S. Court of Appeals for the 8th Circuit upheld a lower court’s decision denying Novartis a preliminary injunction against Missouri Senate Bill 751. The law prevents drug manufacturers from restricting deliveries of 340B drugs to pharmacies contracted with Missouri-covered entities, unless the U.S. Department of Health and Human Services prohibits the arrangement. The appellate court concluded that Novartis did not demonstrate a likelihood of success on the merits. As a result, the statute will remain in effect while the broader legal challenge continues.

2. Court Rejects Federal Preemption and Commerce Clause Claims: Novartis argued that Missouri’s statute is preempted by federal law and violates the dormant Commerce Clause by limiting manufacturers’ ability to control contract pharmacy distribution. The court disagreed, finding the state law regulates drug delivery logistics rather than pricing under the federal 340B framework. Judges also determined the measure does not discriminate against or unduly burden out-of-state manufacturers. These findings weaken constitutional and statutory arguments commonly raised by drugmakers in similar cases.

3. Growing Trend of State-Level 340B Protections Surviving Challenges: Missouri joins several other states whose 340B contract pharmacy protections have withstood legal scrutiny. Courts have recently upheld similar laws in Arkansas, Colorado, Hawaii and Mississippi, and the U.S. Supreme Court declined to take up a challenge to Arkansas’ statute in late 2024. This pattern suggests increasing judicial support for state efforts to shield contract pharmacy arrangements from manufacturer-imposed limits. The rulings collectively reinforce states’ authority to regulate aspects of 340B drug distribution within their borders.

AHA urges tariff exceptions for medical supplies in forced labor trade probe: 5 notes

By Ella Jeffries – The American Hospital Association has asked the Office of the United States Trade Representative to exempt vital medications, medical devices and PPE from proposed tariffs stemming from a Section 301 investigation into countries’ failure to enforce forced labor import bans, according to a July 6 letter. Read Full Article...

HVBA Article Summary

1. Heavy Reliance on Imported Medical Supplies: The AHA argues that many critical medical products are sourced internationally, making them vulnerable to tariff-related price increases. The association cited data showing the U.S. imported more than $75 billion in medical devices and supplies in 2024, and that a significant share of devices marketed domestically are manufactured exclusively overseas. The FDA has also reported that nearly half of medical devices used in the U.S. are imported. The AHA contends that this dependence limits the feasibility of rapidly shifting production to domestic manufacturers.

2. Potential Financial and Operational Strain on Hospitals: Survey data referenced in the letter indicate that 82% of healthcare experts expect tariff-related expenses to increase hospital costs by at least 15%, while 90% of supply chain professionals anticipate procurement disruptions. Because hospital reimbursement rates are often predetermined through government and private payer contracts, providers may be unable to offset higher supply expenses. The AHA maintains that added costs would therefore fall directly on hospitals, potentially affecting financial stability. The organization frames tariff exemptions as a way to mitigate these pressures.

3. Concerns About Specific Product Categories and Trade Protections: The AHA highlighted reliance on foreign manufacturers for key protective equipment, including respirators and gloves, noting that Chinese manufacturers supply a substantial portion of these items used in U.S. healthcare. The association also urged the administration to maintain the Nairobi Protocol, which allows certain medical devices for patients with chronic conditions and disabilities to enter duty-free. Preserving such exemptions, the AHA argues, would help safeguard access to essential technologies like pacemakers and insulin pumps. The broader request reflects ongoing industry concerns about how trade policy could affect clinical supply chains.

Obamacare premiums set for another double-digit jump

By Peter Sullivan – The cost of Obamacare coverage is due to rise by a median of 14% next year, according to a new analysis, marking further turmoil for the law's marketplaces. Read Full Article...

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1. Premium increases driven by costs and subsidy changes: Insurers attribute the projected rate hikes to rising health care expenses and the expiration of enhanced Affordable Care Act subsidies. The KFF analysis reviewed 77 health plans’ preliminary filings across 16 states and Washington, D.C. People earning above 400% of the federal poverty level — about $64,000 for a single person — will not qualify for subsidies, exposing them to the full increase. Higher premiums also raise federal spending because subsidies for lower-income enrollees grow alongside benchmark plan costs.

2. Shrinking and sicker risk pool adds pressure: Enrollment in ACA marketplace plans has fallen by about 3 million people year over year, dropping to 19.2 million. Insurers say that when healthier, more price-sensitive consumers leave the market, the remaining pool is more expensive to insure. They estimate this dynamic added roughly four percentage points to premiums this year and expect a similar effect in 2027. This cycle can compound pricing pressures as higher costs drive further attrition.

3. Political divide over causes and solutions: Democrats argue the subsidy expiration and rising costs are making coverage less affordable and have turned the issue into a campaign focus. Republicans and the Trump administration counter that enrollment declines reflect efforts to curb improper or fraudulent sign-ups and ensure subsidies go to eligible individuals. Meanwhile, underlying medical and prescription drug costs — including GLP-1 weight loss medications and hospital expenses — are rising faster than recent averages. Lawmakers may revisit subsidy policy depending on the balance of power in Congress.

More Tracks, More Benefits

By Beth Braverman – Employers are creating dual-track programming to improve financial wellness for their workforces, leveraging both retirement plans and human resource departments. The additional resources reflect a growing demand from employees facing financial stress, which is increasingly driven by short-term cash flow pressure, rather than a lack of financial awareness. Read Full Article...

HVBA Article Summary

1. Rising Demand for Broader Financial Support: Employee interest in financial wellness support has expanded significantly, with more than one-quarter of workers seeking help with emergency savings, debt reduction and overall financial well-being—double the share reported in 2023, according to Bank of America’s 2025 Workplace Benefits Report. The same report found that 45% of employees have not met their emergency savings goals, underscoring ongoing short-term financial strain. These pressures are prompting employers to rethink benefits strategies beyond traditional retirement readiness. Financial stress is increasingly tied to day-to-day cash flow issues rather than a lack of long-term planning knowledge.

2. Blending In-Plan Features With HR-Led Solutions: Employers are combining retirement plan enhancements—such as SECURE Act 2.0 provisions, emergency savings links and student loan matching—with HR-based offerings like payroll-linked savings, short-term loans and financial coaching. Nearly half of plan sponsors now provide financial education and coaching outside their recordkeeper relationships, reflecting a shift toward more flexible delivery models. Experts say this dual approach allows organizations to address both long-term savings behavior and immediate financial resilience. However, effective implementation requires coordination between HR teams and retirement plan providers to avoid fragmentation.

3. Case Studies Highlight Measurable Impact: Delta Air Lines’ emergency savings program had 58,000 employees enrolled by the end of 2025, with 82% continuing contributions after receiving the company incentive and average balances reaching $4,085. The company pairs incentives with required financial education and coaching, aiming to build sustained saving habits rather than short-term participation. Meanwhile, Alomere Health introduced one-on-one financial planning sessions to support employees transitioning from a public pension system to a 401(k) structure. Both examples illustrate how tailored financial wellness initiatives can improve engagement and help employees better navigate retirement and broader financial decisions.

How AI helps drive higher benefits ROI

By Lorna Borenstein – The modern workplace is changing faster than most benefits strategies can keep up. Employees are overwhelmed by information, HR teams are stretched thin and employers are under increasing pressure to maximize the return on every dollar spent on benefits. Organizations are investing heavily in everything from healthcare and mental health support to financial wellness tools, condition management and wellbeing programs. Yet there is a persistent and costly disconnect between what is offered and what employees actually use. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Navigation gaps undermine benefits value: The article argues that complexity in benefits ecosystems prevents employees from fully using the programs available to them. Workers often face multiple platforms, dense documentation and delays in getting HR support, which discourages engagement. This lack of clear guidance can lead to postponed care, poor decision-making and higher long-term costs. As a result, employers fail to realize the full return on their benefits investments.

2. AI-powered tools streamline access and personalization: AI-driven navigation platforms can integrate with existing HR systems and provide employees with a single conversational interface for benefits questions. These systems deliver tailored guidance based on eligibility and individual needs rather than relying on static FAQs. By directing employees to appropriate and cost-effective care options early, such tools can reduce unnecessary spending and improve outcomes. The technology shifts benefits support from reactive problem-solving to proactive decision support.

3. Advisers play a strategic role in driving ROI: The author emphasizes that benefits advisers are positioned to help employers evaluate and implement AI navigation solutions effectively. Beyond reducing administrative burdens on HR teams, these platforms generate anonymized insights that can inform benefits design and communication strategies. Advisers can use this data to demonstrate measurable improvements in engagement and cost management. Ultimately, their value lies in aligning technology, employee experience and business outcomes to produce stronger returns.

GLP-1 use hits record high in US as obesity rates fall: 6 things to know

By Ella Jeffries – The share of US adults currently taking GLP-1 medications for weight loss has climbed to 11% in 2026, up from 3% in 2024, according to a July 7 Gallup poll. The rise arrives just as CMS launched its Medicare GLP-1 Bridge program July 1, offering select beneficiaries fixed-cost access to GLP-1 drugs including Foundayo, Wegovy and Zepbound through Dec. 31, 2027, with manufacturers providing the drugs at a net price of $245 per month, of which beneficiaries pay $50 and CMS covers $195. Read Full Article...

HVBA Article Summary

1. Rapid Growth in GLP-1 Adoption and Awareness: Survey findings show that 15% of U.S. adults have tried a GLP-1 medication for weight loss at some point, reflecting a nine-point increase since 2024. Public awareness has also expanded significantly, with 91% of Americans now familiar with GLP-1 drugs for weight loss, compared to 80% two years earlier. This suggests both cultural visibility and consumer interest in these medications have risen sharply. The data indicate that GLP-1s are moving from niche treatments to mainstream weight management options.

2. Shifts in Obesity and Diabetes Trends: The U.S. adult obesity rate has declined to 36.4% in 2026 after reaching a peak of 39.9% in 2022. Gallup reported that this downward trend has inversely tracked with increasing GLP-1 usage across most age groups. Meanwhile, diabetes diagnosis rates have stabilized since 2023 following more than a decade of gradual increases. These patterns point to a potential association between broader GLP-1 use and recent public health shifts, though the poll does not establish causation.

3. Growing Use of Compounded Versions and Cost Concerns: While brand-name drugs account for 68% of current use, nearly one in five users rely on compounded versions that are not FDA-approved. Thirty-five percent of compounded users previously used a brand-name product, and those switching were about twice as likely to cite cost or insurance coverage as their reason. Compounded users also reported slightly higher perceptions of extreme effectiveness than brand-name users. The findings suggest pricing and coverage dynamics are influencing medication choices as demand expands.

Inpatient mental health and substance use stays average $15,000, report finds

By Alan Goforth – Mental health accounts for a significant share of both health care utilization and spending. Approximately 1 in 5 people with private health insurance has a mental health issue, and 1 in 20 has a serious mental condition, according to a new report from the KFF-Peterson Health System Tracker. Private insurance enrollees represent about one-quarter of mental health and substance use disorder inpatient admissions, while Medicaid represents about 41% and Medicare 22%. Read Full Article...

HVBA Article Summary

1. Inpatient Costs and Diagnoses Vary by Condition: The analysis of 2023 data found that average total inpatient costs were $15,900 for mental health admissions and $15,500 for substance use admissions, including insurer and patient payments. Depression was the most common mental health diagnosis, accounting for 45% of admissions with an average cost of $13,100 per stay. Alcohol use disorder represented roughly three-quarters of substance use admissions, with an average cost of $15,900 per admission. Most patients had only one inpatient stay within a calendar year, suggesting episodes of acute rather than repeated hospital-based treatment.

2. Care Settings and Emergency Department Use Differ: The majority of mental health inpatient treatment occurred in psychiatric rooms or units within general acute care hospitals, representing 9 in 10 visits. Substance use treatment settings were more varied, with half of visits involving detoxification facilities, one-third in non-psychiatric hospital settings and 30% in residential treatment facilities. Emergency department involvement was common, included in two-thirds of mental health admissions and one-third of substance use visits. These patterns highlight differences in how patients enter and move through inpatient care for behavioral health conditions.

3. Spending Growth and Coverage Gaps Persist: Spending on mental health and substance use treatment has grown faster than overall medical services and now accounts for more than 5% of total health care spending. Average out-of-pocket costs reached $1,300 for mental health admissions and $1,400 for substance use admissions, adding financial strain for privately insured patients. The report cautions that its findings may understate total utilization and spending because some patients self-pay for care outside employer-sponsored insurance claims. It also notes ongoing challenges related to provider availability and the quality of in-network mental health services.

How HSAs can help organizations stave off $183B in lost productivity

By Paola Peralta – Increasing healthcare rates aren't just costing employees financially, but their organizations are losing productivity. Nearly half of employed Americans say they are more financially worried today than they were six months ago, according to a recent survey of employed Americans conducted by health tech company HealthEquity, contributing to an estimated $183 billion in annual productivity losses for U.S. employers. Rising healthcare costs are fueling that anxiety, leading employees across industries to postpone or skip needed care to save money. Better-designed benefits can help ease those financial pressures while improving access to care. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Delayed Healthcare Is Driven by Financial and Structural Challenges: HealthEquity's survey found that 36% of respondents delayed medical care, with specialist visits, prescription medications, and diagnostic tests being the most commonly postponed services. Delays were more prevalent among individuals with chronic conditions (44% versus 25% without chronic conditions) and among respondents earning less than $50,000 annually, where 46% reported delaying or avoiding care due to financial barriers. The findings suggest that affordability and broader systemic issues continue to influence healthcare utilization across multiple populations.

2. Younger Workers Face Higher Rates of Care Delays and Workplace Impacts: Gen Z (45%) and millennials (42%) reported delaying healthcare at substantially higher rates than Gen X (30%) and baby boomers (29%), reflecting the financial pressures many younger employees face, including student debt, housing costs, and lower early-career earnings. The survey also found that younger generations who delay care are four times more likely than boomers to report being highly distracted at work, highlighting a potential connection between healthcare access and workforce productivity. These findings indicate that healthcare affordability may have both individual health and organizational performance implications.

3. HSAs and Ongoing Benefits Education May Improve Healthcare Readiness: HealthEquity reported that nearly nine in 10 HSA holders feel more prepared and confident about paying for healthcare expenses, while 72% of HSA contributors demonstrated high benefits literacy compared with 64% of those without an HSA. The report suggests that expanding access to HSAs, improving employee communication, and regularly assessing workforce healthcare needs could help employees better understand and utilize their benefits. It also emphasizes that employers may benefit from treating benefits education as an ongoing initiative rather than limiting communication to annual open enrollment periods.