Health care just as important as economy. What experts want Biden and Trump to address.

By Berkeley Lovelace Jr. - When President Joe Biden and former President Donald Trump face off Thursday during the first general election debate, health policy experts say tackling the exorbitant cost of health care is as much a top issue for voters as the U.S. economy. Read Full Article…

HVBA Article Summary

1. Rising Health Care Costs and Economic Impact: Health care costs in the United States continue to rise sharply, with national spending projected to have increased by 7.5% in 2023, reaching almost $4.8 trillion. The average spending per person on health care services increased from $13,012 in 2021 to $14,423 in 2023. This rise in costs is significantly outpacing the growth of the overall economy and hitting Americans’ wallets hard, causing about half of U.S. adults to report difficulty in affording their health care costs.

2. Public Sentiment and Political Challenges: The high cost of health care is a major concern for American voters, intertwining with their broader economic anxieties. According to Drew Altman, president and CEO of KFF, health care is not seen as separate from the economy by the public. About 1 in 4 Americans report struggling to pay for health care in the past year, often resulting in delayed or skipped necessary treatments, which can exacerbate financial problems and medical debt within families.

3. Health Care Reform and Policy Debates: Major health care reform remains a challenging issue for policymakers, with significant legislative changes unlikely in the near future. While President Biden may highlight provisions in the Inflation Reduction Act, such as allowing Medicare to negotiate drug prices, and Trump has previously focused on reducing prescription drug costs, both face substantial hurdles in gaining bipartisan support for comprehensive reforms. The political landscape's division complicates efforts to address voters' concerns about the high costs of health care effectively.

Smallest businesses feel crush of health care costs

By Tina Reed - Employee health care costs are increasingly eating up larger shares of payroll costs for America's smallest businesses, according to a new analysis from the JPMorgan Chase Institute. Read Full Article…

HVBA Article Summary

1. Disproportionate Burden on Small Businesses: The analysis reveals that smaller businesses, particularly those with at least two employees and revenues of $600,000 or less, spend a significantly higher portion of their payroll costs—12%—on health care benefits compared to larger businesses with revenues of at least $2.4 million, which spend only 7%. This disproportionate burden highlights the financial strain on smaller enterprises.

2. Economic Impact on Small Business Operations: Rising health care costs are impacting the operational decisions and growth potential of small businesses. According to Dan Mendelson, CEO of Morgan Health, health care expenses are increasingly affecting the profitability and expense lines of small businesses, making it more challenging for these critical economic drivers to thrive and expand.

3. Broader Economic Consequences: The analysis aligns with broader economic research, such as a National Bureau of Economic Research report, which found that increased local health care prices can lead to reduced employment. Specifically, a 1% increase in health care prices can decrease an employer's headcount by about 0.4%. This underscores the significant role health care costs play in shaping the economic landscape and employment trends, particularly for small businesses navigating inflation and a competitive labor market.

Biden administration to lower costs for 64 drugs through inflation penalties on drugmakers

By Annika Kim Constantino - The Biden administration on Wednesday said it will impose inflation penalties on 64 prescription drugs for the third quarter of this year, lowering costs for certain older Americans enrolled in Medicare. Read Full Article…

HVBA Article Summary

1. Medicare Rebates for Overpriced Drugs: Under President Joe Biden’s Inflation Reduction Act, drugmakers must pay rebates to Medicare if they increase medication prices faster than the rate of inflation. This measure aims to curb excessive price hikes and reduce out-of-pocket costs for seniors.

2. Lower Coinsurance Rates for Medicare Part B Patients: From July 1 to September 30, Medicare Part B patients will see lower coinsurance rates for 64 drugs whose prices have increased above the inflation rate. Some patients could save as much as $4,593 per day on these medications, which treat conditions like cancer, infections, and osteoporosis.

3. Inflation Penalties and Future Rebates: The Biden administration plans to send the first invoices for rebates owed by drugmakers to Medicare in 2025. Additionally, in December, Biden released a list of 48 prescription drugs that will face inflation penalties in the first quarter of 2024, further enforcing price control measures.

Progress on health disparities is slow after 20 years: report

By Mari Deveraux - The National Academies of Sciences Engineering and Medicine on Wednesday said law and policy changes aimed at eliminating health disparities have made slow and uneven progress improving racial inequities over the past 20 years. Read Full Article…

HVBA Article Summary

1. Persistent Health Disparities: The Ending Unequal Treatment report reveals that people of color in 2024 continue to face significant health disparities. They remain disproportionately uninsured, underutilize care services, and are underrepresented in the healthcare workforce. These issues persist despite efforts and some improvements since the 2003 study on healthcare inequities.

2. Inconsistent Progress in Life Expectancy: Life expectancy improvements have been inconsistent across different ethnic groups. While there have been slight increases for white and Black populations, Hispanic and American Indian/Alaska Native groups have seen declines. These disparities highlight the ongoing challenges in achieving equitable health outcomes.

3. Continued Inequities in Healthcare Access and Workforce Diversity: Minority groups still struggle with less access to primary care and clinical services compared to white populations. Additionally, the healthcare workforce remains predominantly white, despite progress in training and hiring more clinicians of color. Addressing these inequities requires targeted interventions and systemic changes to ensure equal access and representation in healthcare.

SELECT: Semaglutide provides CV benefits for adults with obesity, regardless of HbA1c

By Michael Monostra - Semaglutide reduces risk for cardiovascular events among adults with overweight or obesity and preexisting cardiovascular disease, regardless of baseline HbA1c or change in HbA1c, according to data from the SELECT trial. Read Full Article…

HVBA Article Summary

1. Consistent Cardiovascular Benefits Across All HbA1c Levels: In the SELECT trial, adults with overweight or obesity and preexisting cardiovascular disease (CVD) who received once-weekly semaglutide 2.4 mg experienced a 20% lower risk of cardiovascular events compared to placebo. This risk reduction was consistent across all baseline HbA1c groups, demonstrating the cardiovascular benefits of semaglutide irrespective of glycemic status.

2. Independent of HbA1c Changes: The cardiovascular risk reduction with semaglutide was observed regardless of changes in HbA1c levels. This suggests that the beneficial effects of semaglutide on cardiovascular outcomes are independent of both baseline HbA1c and the magnitude of HbA1c change over time.

3. Broader Implications and Future Research Needs: While the SELECT trial's findings highlight the pleiotropic effects of semaglutide beyond weight and glucose-lowering, more research is necessary to understand its full benefits. Future studies should explore the cardiovascular benefits of semaglutide in populations without preexisting CVD, examine the variability in weight-loss outcomes, and investigate the generalizability of the findings to more diverse populations.

One-quarter of HR professionals feel uncomfortable using mental health benefits, SHRM researcher says

By Emilie Shumway - Many HR professionals, especially those in benefits, are familiar with a problem hounding the realm of worker well-being: While employees say they desire and expect well-being benefits, they nevertheless demonstrate a strong hesitation to use those on offer. Read Full Article…

HVBA Article Summary

1. Awareness vs. Comfort in Utilizing Mental Health Benefits: Although 89% of HR professionals are aware of their organization’s mental health benefits, 26% do not feel comfortable asking for these resources, indicating a significant gap between awareness and utilization.

2. Mental Health Stigma and Organizational Support: Nearly half of the HR professionals reported feeling uncomfortable discussing their mental health at work, and 35% do not believe their organization genuinely cares about their mental health, highlighting a disconnect between organizational culture and employee well-being.

3. Stress and Emotional Exhaustion in HR Roles: The majority of HR professionals find their jobs emotionally exhausting, with nearly half feeling burnt out. They face unique challenges such as managing the stress of conflicting roles, suppressing emotions during difficult conversations, and the emotional toll of hearing about employees' hardships.

How employers can support retirement-age employees

By Harrison Newman - The aging population has reshaped the labor force, with about one in four employees being aged 65 or older. This demographic, the fastest-growing group of workers in the country, is set to trigger the largest wave of retirements in U.S. history, posing significant challenges for employers and the economy. Read Full Article…

HVBA Article Summary

1. Strengthen Retirement-Friendly Benefits: Employers can enhance support for retirement-age employees by improving core benefits such as fully-paid health, dental, and vision plans, along with health savings accounts (HSAs). These benefits are crucial for all employees, but it's essential to emphasize their specific value to retirement-age employees. For instance, HSAs are retirement-friendly as they can cover premiums and medical expenses even when employees are on Medicare. Helping employees maximize these benefits ensures they fully utilize the available offerings as they age.

2. Provide Strategies for Financial Well-being: Financial wellness programs often focus on younger employees, but it's equally important to address the needs of retirement-age employees who may be paying for their children's college education. Education on tax-advantaged 529 savings plans can help these employees save for future education expenses. Providing educational materials or seminars on the benefits and workings of 529 plans can significantly enhance their financial readiness for retirement.

3. Educate on Medicare and Social Security: Retirement benefits like Medicare and Social Security can be complex and confusing for many retirement-age workers. Educating employees on how these systems work, when to enroll, and how they impact retirement income is crucial for their financial stability. Clear, accessible information and guidance on these benefits help employees make informed decisions, reduce anxiety about retirement, and encourage them to transition off employer-sponsored health coverage earlier, easing the financial burden on the organization.

Republicans Look to Defund Retirement Security Rule, Other DOL Priorities

By Paul Mulholland - Republican members of the House Committee on Appropriations proposed a spending bill for fiscal year 2025 that would cut the Department of Labor’s budget and completely defund key administration priorities. Read Full Article…

HVBA Article Summary

1. Defunding of New DOL Policies: The budget bill proposes to completely defund the Department of Labor's (DOL) application and enforcement of several new policies and rules, including the new independent contractor definition, ESG considerations in retirement plans, and the Retirement Security Rule.

2. Significant Budget Cuts: The bill recommends a discretionary spending total for the DOL of $10.5 billion for the fiscal year starting October 1, representing a $3 billion cut from 2024 levels and $4.6 billion less than the White House's budget request. The Employee Benefit Security Administration would receive $181.1 million, significantly less than its requested budget.

3. Targeted Reductions in Other DOL Divisions: The proposal includes funding cuts to various DOL divisions, such as a $75 million reduction for both the Wage and Hour Division and the Occupational Safety and Health Administration, defunding a rule on silica dust exposure for miners, and completely defunding the DOL Women's Bureau.

Gen X and millennials would pay higher taxes to access Medicare

By Deanna Cuadra - Have Americans made peace with the fact that they will likely not have access to Medicare when they turn 65? It doesn't look like it. Health insurance company eHealth surveyed 1,000 Americans born between 1965 and 1996 to see how millennials and Gen Xers are reacting to the likely loss of the government-funded insurance program: 94% still feel they are entitled to Medicare in retirement, and 84% are willing to pay higher taxes to ensure its survival. Read Full Article…

HVBA Article Summary

1. Medicare Funding Challenges and Future Projections: The Medicare board of trustees' annual report estimates that without a sustainable plan from Congress, Medicare funds are projected to run out by 2036. This would result in significant cuts to Medicare Part A, which primarily covers inpatient care, reducing its coverage to 89% of services. While Medicare Part B and Part D, which cover outpatient services and prescription drugs, will remain mostly intact, retirees will still face higher out-of-pocket costs, deductibles, and less coverage for preventative care.

2. Impact on Retirement Planning: With the potential depletion of Medicare funds, the financial burden on retirees is expected to increase. Whitney Stidom, vice president of Medicare operations, highlights that a couple should anticipate spending $315,000 on healthcare during retirement, according to the 2022 Fidelity Retiree Health Care Cost Estimate. This figure underscores the critical role Medicare plays in retirement planning and the necessity for individuals to account for rising healthcare costs in their savings strategies.

3. Call for Government Intervention and Employer Support: Despite the willingness of Americans to invest in Medicare, the lack of government intervention leaves limited options for securing its future. Nearly 80% of millennials and Gen Xers rank Medicare among their top three voting topics, indicating strong public support for legislative action. In the interim, Stidom advises employers to enhance their retirement and financial planning benefits. This includes educating employees on the use of health savings accounts and providing financial incentives to help them save for healthcare expenses in retirement. Employers are encouraged to offer educational opportunities to ensure employees are well-informed and prepared for the rising costs of healthcare.

Health Insurance Market Size Outlook on Key Players Statistics ,Overview and Revenue Trends (2024-2032)

By Newswires - The health insurance market is essential for providing financial protection against medical costs. It includes employer-sponsored plans, individual/family plans, and government programs like Medicare and Medicaid. Key plan types are HMOs, PPOs, EPOs, and POS, each offering varying levels of flexibility and network restrictions. Read Full Article…

HVBA Article Summary

1. Health Insurance Market Structure:

   • Types of Plans: Employer-Sponsored Insurance, Individual and Family Plans, Government Programs (Medicare, Medicaid, CHIP, veterans' benefits).

   • Plan Structures: Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), Exclusive Provider Organizations (EPOs), Point of Service (POS).

   • Coverage Types: Basic Coverage (emergency services, hospitalization, preventive care), Comprehensive Coverage (mental health services, prescription drugs, maternity care).

2. Market Dynamics and Regulatory Environment:

   • Premiums and Costs: Premiums vary based on plan type, coverage level, demographics, and location; additional costs include deductibles, copayments, and coinsurance.

   • Regulatory Impact: The Affordable Care Act (ACA) expanded Medicaid, established insurance marketplaces, and prohibited denial of coverage for pre-existing conditions, significantly reshaping the market.

   • Current Trends: Rise of high-deductible health plans paired with Health Savings Accounts, growth of telehealth services, shift towards value-based care focusing on health outcomes.

3. Challenges and Future Outlook:

   • Affordability and Access: High premiums and out-of-pocket costs remain barriers; geographic and network limitations affect access to care.

   • Administrative Complexity: Navigating benefits, claims, and coverage poses a significant challenge for consumers.

   • Future Trends: Ongoing policy changes, technological advancements (AI, personalized medicine), and a shift towards consumer-centric models emphasizing patient satisfaction and health management tools.