Daily Industry Report - June 10

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
Vice Chairman, President & COO
Health & Voluntary Benefits Association® (HVBA)
Editor-In-Chief
Daily Industry Report (DIR)

Robert S. Shestack, CCSS, CVBS, CFF
Chairman & CEO
Health & Voluntary Benefits Association® (HVBA)
Publisher
Daily Industry Report (DIR)

SCOTUS Deals a Blow to Medical Debt Collectors

By Ron Harman King - Watch out, medical debt collectors. You can’t count on the U.S. Supreme Court to protect you. In a 7-2 ruling, the Court has reversed a Louisiana federal appeals court by holding that the Consumer Financial Protection Bureau (CFPB) may continue receiving funds through the Federal Reserve rather than through congressional appropriations. Read Full Article…

HVBA Article Summary

  1. Critical Impact on Consumer Protection: The potential fallout of the appeals court opinion could have severely undermined the Consumer Financial Protection Bureau (CFPB), jeopardizing its ability to safeguard consumers. This would have left millions vulnerable to aggressive debt collection practices, particularly in the realm of medical debt, where Americans owe a staggering $220 billion according to a recent survey.

  2. Protecting Vulnerable Patients: The CFPB's proposed regulations, aimed at shielding an estimated 100 million patients from overbearing collection tactics, highlight the urgent need for regulatory intervention. By prohibiting the reporting of medical debt to various entities, these rules aim to alleviate the adverse effects on consumers' creditworthiness, housing prospects, loan accessibility, and employment opportunities.

  3. Growing Support and Legislative Action: Despite legal challenges, momentum for addressing medical debt at both federal and state levels is evident. Legislative actions such as New York's ban on medical debt reporting and initiatives to pay off residents' medical debt underscore a broader effort to alleviate the burden on individuals. Additionally, bipartisan support and advocacy from federal legislators, along with proactive measures by credit bureaus to remove cleared medical debts from credit reports, signal a multifaceted approach to tackling this pressing issue.

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HHS warns hospitals of DDoS cyberattacks

By Giles Bruce - HHS warned hospitals to be on the lookout for distributed denial-of-service cyberattacks. DDoS attacks have grown over the years, but 2023 saw an "unforeseen" acceleration in their number and sophistication, according to the May 30 analyst note from HHS' Office of Information Security and Health Sector Cybersecurity Coordination Center. Read Full Article…

HVBA Article Summary

  1. Distinctive Nature of DDoS Attacks: DDoS attacks, unlike traditional DoS events, employ multiple sources and flood victim systems with a substantial volume of traffic simultaneously. This characteristic renders them challenging to detect and eliminate swiftly, according to the HHS.

  2. Rising Threat from "Hacktivists": The increasing involvement of politically motivated "hacktivists" has fueled the prevalence of DDoS attacks, posing a significant risk to critical infrastructure such as hospitals. These attacks are relatively inexpensive to orchestrate, amplifying their potential impact and severity.

  3. Effective Prevention Strategies for Hospitals: The HHS recommends a multi-faceted approach for hospitals to safeguard against DDoS attacks. This includes infrastructure upgrades, redundancy measures, regular security audits, patch management, DDoS mitigation services, deployment of SIEM solutions, development of incident response plans, and vigilant traffic monitoring to mitigate risks and enhance cybersecurity resilience.

HVBA Poll Question - Please share your insights

How do your clients typically handle the creation of their employee benefit booklets?

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Our last poll results are in!

29.89%

of Daily Industry Report readers who responded to our last polling question estimate that either themselves or their clients spend an estimated “16 to 24+ hours (2-3+ days per month) reconciling their employee benefits premium bills.

26.63% of respondents estimate spending “30 minutes to 8 hours (a day or less per month)” and 21.10% estimate spending “8 to 16 hours (1-2 days per month) while 22.38% responded that “they do not reconcile monthly premium bills”.

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Healthcare Errors: It Is Time to Tackle Them, Not Tolerate Them

By Tim Bristol, Vicki Moran and Judith Wheaton Herman - When researchers proposed the shocking statistic that medical errors were the third leading cause of death in the United States, the healthcare community reacted in a variety of ways. Read Full Article…

HVBA Article Summary

  1. Urgency in Response: Despite the prevalence of errors in healthcare settings, the response from professionals has often been marked by skepticism, defensiveness, or apathy. Drawing a parallel with the swift action taken by the airline industry after a midair incident, there's a call for healthcare to prioritize safety with the same level of urgency and commitment to reform.

  2. Prevalence of Errors: Recent research highlights the alarming frequency of adverse events in hospitals, with a significant portion deemed preventable. Medication errors, particularly involving novice nurses, stand out as a significant safety hazard. This underscores the pressing need for proactive measures to address these issues.

  3. The #SAFE50 Initiative: Proposing a solution to enhance healthcare safety, the #SAFE50 initiative suggests integrating virtual simulations into nursing education. By exposing students to realistic clinical challenges for 50% of their educational journey, this approach aims to cultivate clinical judgment, decision-making skills, and proactive error management. This proactive approach not only prepares nurses for real-world scenarios but also addresses the challenges of turnover and workplace stress, ultimately contributing to safer healthcare environments.

Preventative Care: The Right Approach to Improving Endpoint Security

By Jason Mafera - Cybersecurity is a top concern among healthcare professionals, notably CFOs, many of whom have experienced the disruptive and costly effects of a breach. A Guidehouse survey conducted by the Healthcare Financial Management Association (HFMA) found that 55% of providers listed cybersecurity as their top investment priority for 2024. Read Full Article…

HVBA Article Summary

  1. Endpoint Security Enhancement: The proliferation of endpoint devices among healthcare professionals underscores the critical need for improved vulnerability management, data security, and threat detection. While traditional security measures like firewalls and network monitoring are essential, focusing on securing endpoint computing through strategies such as secure operating systems, centralized management, and communication with end users can significantly enhance overall security posture.

  2. Cloud-Based Solutions for Risk Reduction: Leveraging cloud storage and access can mitigate risks associated with healthcare staff using mobile devices across multiple locations. By migrating applications to the cloud, healthcare systems can minimize the risk of malware or ransomware infiltration. Centralized management, patching, and recovery in the cloud, along with the adoption of single sign-on identity providers, not only improve security but also enhance productivity for healthcare professionals.

  3. Adoption of Zero Trust Framework: Moving towards a Zero Trust model in endpoint computing is imperative for healthcare systems. This approach, which assumes no implicit trust, requires secure operating systems that support Zero Trust methodologies, single sign-on, and multi-factor authentication. Implementing Zero Trust at the endpoint provides a robust framework to tighten security, particularly in complex healthcare workflows. Additionally, centralized management of endpoint infrastructure streamlines operations and reduces IT burdens, while increased communication and education with end users reinforce security protocols and compliance with HIPAA regulations.

The Doctor Or Nurse Practitioner Will See You. Does It Matter?

By Joshua Cohen - Amid a critical shortage of physicians throughout the U.S. and an increase in the number of nurse practitioners with doctorates, nursing groups are pushing to expand what certain nurses can do without doctors’ supervision. Many state legislatures are doing the same. Read Full Article…

HVBA Article Summary

  1. Patient-Centered Care Dynamics: The choice between nurse practitioners (NPs) and medical doctors (MDs) impacts health outcomes, contingent upon the clinical setting, care stage, and case complexity. Factors such as primary versus specialty care, history taking, physical examinations, diagnosis formulation, and treatment planning influence the suitability of NP or MD involvement.

  2. Shifting Healthcare Landscape: With physician graduate rates trailing behind those of NPs and physician assistants (PAs), non-physician providers are increasingly central to healthcare delivery. Economic incentives, such as higher reimbursement rates for NPs, drive healthcare institutions to favor NP and PA employment, potentially reshaping the care provider landscape.

  3. Policy Implications and Training Disparities: Legislative initiatives like Pennsylvania's proposed full practice authority for NPs underscore ongoing debates regarding NP autonomy. While NPs receive advanced education and training, disparities exist in the depth and duration of medical training compared to physicians. The evolving roles of NPs highlight the necessity of collaborative care models, emphasizing the importance of multidisciplinary teams for optimal patient outcomes.

Report: Virtual MSK Solutions Meaningfully Improve Outcomes

By Marissa Plescia - Virtual musculoskeletal (MSK) solutions can meaningfully improve patient outcomes, a Wednesday evaluation from the Peterson Health Technology Institute (PHTI) showed. Read Full Article…

HVBA Article Summary

  1. Effectiveness of Physical Therapist-Guided Solutions: Among the evaluated MSK solutions, those guided by physical therapists yielded the most promising results. They demonstrated improvements in pain and function comparable to traditional in-person care while also reducing overall spending.

  2. Limitations of App-Based Exercise Therapies: While app-based exercise therapies showed potential in improving pain and function compared to no therapy, they fell short in matching the effectiveness of in-person physical therapy. Consequently, they may not serve as direct substitutes for traditional care but could still offer value for patients with lower acuity conditions.

  3. Challenges in Integration and Awareness: Despite their clinical effectiveness, many MSK solutions face challenges in integration into mainstream healthcare systems and lack awareness among patients and providers. Integrating these solutions into medical benefits and improving early referral processes could enhance their accessibility and maximize their impact on patient care and healthcare spending.

UnitedHealth CEO Sold $5.6 Million in Shares the Same Day as Ransomware Attack

By Matthew Cunningham-Cook - On February 21, the same day that a ransomware attack began to wreak havoc throughout UnitedHealth Group and the U.S. health care system, five of UnitedHealth’s C-suite executives, including CEO Andrew Witty and the company’s chief legal officer, sold $17.7 million worth of their stock in the company. Read Full Article…

HVBA Article Summary

  1. Stock Performance Post-Ransomware Attack: Since the ransomware attack, UnitedHealth's stock has struggled to recover, significantly underperforming the S&P 500 index by 8%. In the immediate aftermath of the attack, the stock plummeted by 10.4%, resulting in a loss of over $46 billion in market capitalization. Despite ongoing efforts, the stock continued its decline over several weeks, indicative of investor concern and market volatility.

  2. Insider Trading Concerns: UnitedHealth executives, including CEO Brian Witty, engaged in substantial stock sales on February 21, 2024, the same day they became aware of the ransomware attack. Witty's sale of shares, valued at $22 million, has raised questions of insider trading, especially considering the significant material impact of the cyberattack on the company's operations and financial standing. Legal experts highlight the potential for SEC and DOJ investigations, emphasizing the need for greater caution among corporate leaders during such critical events.

  3. Negligence and Exploitation: Witty admitted negligence on UnitedHealth's part for failing to implement adequate cybersecurity measures such as multi-factor authentication, which contributed to the ransomware attack. The attack, estimated to cost the company up to $1.6 billion, compromised the personal health information of millions of Americans. Moreover, UnitedHealth's response to the crisis, including the acquisition of struggling medical practices, has faced criticism and legal scrutiny. The company's actions, coupled with prior instances of questionable stock transactions by its executives, underscore broader concerns regarding corporate accountability and ethical governance.

From Connecticut to Arkansas, dental health rankings reveal significant regional variations

By Alan Goforth - The dental health of Americans is determined in part by where they live. Connecticut residents enjoy the best dental health in the nation, while Arkansas ranks dead last. Read Full Article…

HVBA Article Summary

  1. Disparity in Dental Professional Availability: The number of dentists per capita varies significantly across regions in the United States. States like the District of Columbia and Massachusetts boast higher dentist-to-resident ratios, enhancing accessibility to dental services, while states such as Mississippi and Alabama lag behind, impacting affordability and availability of oral care.

  2. Inequities in Dental Coverage: Medicaid dental care coverage exhibits wide discrepancies among states, ranging from comprehensive benefits to limited coverage, or even none at all. This disparity exacerbates disparities in oral health outcomes, with some states only offering coverage for emergency dental care, further hindering preventive measures and exacerbating dental health issues.

  3. Regional Disparities in Oral Health Habits: Regional disparities in dental health habits contribute to variations in overall oral health outcomes. While some states exhibit higher rates of preventive dental care utilization, others struggle with significant portions of the population avoiding dental visits due to fear or other factors. These differences in behavior significantly influence the prevalence of oral health issues, contributing to the overall rankings of states in terms of dental health.

New Era? 'Double Selective' Antibiotic Spares the Microbiome

By Sari Harrar - A new antibiotic uses a never-before-seen mechanism to deliver a direct hit on tough-to-treat infections while leaving beneficial microbes alone. The strategy could lead to a new class of antibiotics that attack dangerous bacteria in a powerful new way, overcoming current drug resistance while sparing the gut microbiome. Read Full Article…

HVBA Article Summary

  1. Novel Targeting Strategy: The research introduces a groundbreaking approach by targeting the Lol system, a transporter system crucial for Gram-negative bacteria's survival. By hindering this system, the drug lolamicin effectively neutralizes a wide array of antibiotic-resistant Gram-negative pathogens while leaving beneficial bacteria untouched, demonstrating its double-selective nature.

  2. Threat of Antibiotic Resistance Mitigated: With the emergence of drug-resistant Gram-negative bacteria, conventional antibiotics have become increasingly ineffective, leading to severe infections with high mortality rates. Lolamicin's unique mechanism offers a promising solution to this challenge, potentially representing the first of a new class of antibacterials with narrow-spectrum Gram-negative activity and minimal gastrointestinal disturbance.

  3. Future Prospects and Challenges: While lolamicin shows significant promise, challenges lie ahead in its clinical translatability and addressing bacterial resistance development. However, the research paves the way for further exploration, including potential modifications of the drug, combination therapies, or the discovery of other compounds targeting the Lol system. Despite the lengthy process of drug development and approval, the urgent need for effective treatments for Gram-negative infections underscores the importance of continued research in this area.

The possibilities and perils of AI in the health insurance industry: An explainer and research roundup

By Rachel Layne - As artificial intelligence infiltrates virtually every aspect of life, more states in the U.S. are seeking to regulate (or at least monitor) its use. Many are passing legislation, issuing policy rules or forming committees to inform those decisions. Read Full Article…

HVBA Article Summary

  1. Legal Battles Highlight AI Pitfalls in Health Insurance: Lawsuits against major insurers like Humana, Cigna, and UnitedHealth underscore the risks associated with AI algorithms in healthcare administration. Allegations of biased decision-making and secretive practices have prompted scrutiny, indicating a need for robust regulatory oversight.

  2. Emerging Regulatory Landscape for AI in Health Insurance: Both federal and state governments are actively crafting regulations to address AI's role in healthcare, particularly in insurance coverage decisions. Proposed legislation aims to enhance transparency, accountability, and fairness in algorithmic processes, signaling a shift towards greater regulatory control.

  3. Challenges and Opportunities in AI Regulation: The evolving regulatory landscape poses challenges for insurers, who must navigate differing state laws and ensure compliance with federal guidelines. Simultaneously, it presents opportunities for journalists to delve into the technical, ethical, and legal dimensions of AI in healthcare, shedding light on its impact and implications for patients and providers alike.