CVS warns bill would force shutdown of 134 pharmacies in this state

By Ken Alltucker – CVS said it would close all 134 of its pharmacy locations in Tennessee if the state enacts legislation that takes aim at the pharmacy giant's business model. A Tennessee state senator sponsored a bill that would prohibit companies from owning retail pharmacies and pharmacy benefit managers. CVS employs more than 2,000 at 134 retail pharmacy locations in Tennessee, and the company also owns CVS Caremark, a pharmacy benefit manager. Pharmacy benefit managers, or PBMs, have drawn bipartisan scrutiny nationwide as the Trump administration, Congress and states seek ways to slow spending on prescription drugs. Read Full Article...

HVBA Article Summary

1. Legislative Intent and Industry Impact: The proposed Tennessee bill aims to prevent companies from owning both retail pharmacies and pharmacy benefit managers, citing concerns about conflicts of interest in the pharmacy marketplace. Supporters argue that separating these entities will create a fairer system for patients and independent pharmacies. However, CVS contends that the legislation would force them to close all their Tennessee locations, impacting thousands of employees and patients.

2. Broader Regulatory Context: Similar legislative efforts have occurred in other states, such as Arkansas, where CVS challenged a comparable law in court and continues to operate under a judicial order. At the federal level, Congress has also passed measures to increase transparency and limit certain compensation practices for PBMs, particularly in Medicare Part D. These actions reflect a growing national focus on regulating PBMs to address prescription drug costs and business practices.

3. Potential Consequences for Patients and Employees: If enacted, the Tennessee bill could lead to the closure of 134 CVS pharmacies and 25 in-store clinics, affecting over 2,000 employees and more than 1.5 million patients who rely on these services. CVS argues that the legislation does not address core PBM industry issues such as pricing and formularies, but instead risks reducing access to medications and healthcare services. The debate highlights the tension between regulatory efforts to reform the pharmacy industry and the potential for unintended consequences on local healthcare access.

Uncertainty persists for hospitals with tariffs, even with Supreme Court ruling

By Ron Southwick – Hospitals and health systems have struggled to keep pace with President Trump’s tariffs on many imported products. The Supreme Court struck down the bulk of Trump’s tariffs, but Trump has said he plans to continue to find other ways to impose tariffs. The high court found that such broad taxing authority requires legislation from Congress. And a federal judge ruled this week that companies who paid tariffs are entitled to refunds. Read Full Article...

HVBA Article Summary

1. Ongoing Policy Uncertainty: Despite the Supreme Court's decision to overturn most of the tariffs, hospitals and health systems still face significant uncertainty regarding future tariff policy. Experts note that questions remain about the process for obtaining refunds and whether Congress will engage in further tariff legislation, especially in an election year. This lack of clarity makes it difficult for healthcare organizations to plan for the future.

2. Operational and Budgeting Challenges: The unpredictable nature of tariff policy has made it challenging for hospitals to consistently plan budgets and forecast costs for medical supplies and equipment. While some hospitals have managed to mitigate cost increases by seeking alternative suppliers, the frequent policy changes have disrupted long-term planning for capital purchases and facility design. Experts emphasize that transparency and consistency in policy are essential for effective operational planning.

3. Complexity of Shifting to Domestic Supply Chains: Hospitals are increasingly interested in sourcing medical supplies from domestic or nearby countries to reduce reliance on imports, particularly from China. However, experts highlight that supply chains for medical products are highly complex, often involving components from multiple countries, and transitioning to domestic production requires significant time, regulatory approval, and investment. Government efforts to strengthen domestic supply chains are ongoing, but a comprehensive, coordinated strategy is needed for meaningful progress.

Eli Lilly's new program aims to boost employer coverage of GLP-1s

By Shelby Livingston – With insurance coverage of weight loss medications stalled, Eli Lilly has developed a program to give employers another way to pay for their workers’ GLP-1 treatments. The pharma giant on Thursday announced the launch of Employer Connect, a website linking employers with independent companies that can provide more direct access to Lilly’s obesity drug Zepbound at a discount. Those companies will act as program administrators and provide a range of services, from helping employers design benefits to shoulder some of the medication’s cost for their workers or providing some level of obesity care. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Employer Coverage for Obesity Drugs Remains Limited: About half of employees in the United States currently have access to obesity medications through their employer health plans, a level that has remained relatively stable from 2025 to 2026. Eli Lilly executive Kevin Hern stated that the company aims to increase this access by offering new pathways for employers to provide coverage. The initiative is intended to encourage employers who have not yet adopted coverage for obesity medications to consider participating.

2. Lilly Expands Access Through Employer Connect Program: The company’s new Employer Connect program builds on its direct-to-consumer platform, Lilly Direct, which allows individuals to purchase the obesity drug Zepbound at reduced cash prices. The program is designed to offer transparent pricing, flexible benefit design, and options for employers to choose third-party partners that manage services. These features aim to simplify the process for employers interested in adding obesity medication coverage to their benefits.

3. Fixed Monthly Pricing and Industry Partnerships: Through the program, employers can access the Zepbound Kwikpen multi-dose injection device at a net cost of $449 per month across all doses. While this cost may be similar to traditional pharmacy benefit coverage, the program emphasizes clearer pricing and removes the need for drug rebate arrangements. More than 15 companies—including FlyteHealth, GoodRx, Mark Cuban Cost Plus Drug Company, Teladoc Health, and Transcarent—are participating, along with pharmacy partners HealthDyne and CenterWell.

Chronic illness drives healthcare spending among millennials

By Jimmy Nesbitt – Young workers are experiencing the fastest increase in healthcare spending, fueled by the rising rates of chronic conditions among millennials. That was one of the major findings from UnitedHealthcare and Health Action Council's ninth annual white paper. The recently released report shows how high-cost medical care and differing utilization patterns are driving up healthcare expenses for both employees and their employers. From 2023–24 to 2024–25, the percentage of millennials considered "well" decreased from 25% to 22%, while the share with chronic conditions such as obesity, depression and hypertension increased from 44% to 47%. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Millennials Face Rising Chronic Health Issues: The report highlights a notable decline in the percentage of millennials considered "well" and an increase in those with chronic conditions. This trend suggests that younger workers are developing health problems earlier in life, which may have long-term implications for their well-being and productivity. Employers may need to adapt their benefits strategies to address these emerging health challenges among younger employees.

2. Healthcare Utilization Patterns Are Shifting: Millennials and Gen Z workers are visiting emergency rooms more frequently and engaging less with primary care providers compared to other generations. This shift in healthcare utilization may contribute to higher costs and less effective management of preventable conditions. Encouraging regular engagement with primary care could help mitigate the progression of chronic diseases and reduce overall healthcare spending.

3. Major Health Events Are Becoming More Common and Costly: The frequency of major health events, defined as medical claims exceeding $100,000 annually, has doubled over the past five years among younger workers. The average monthly claim for these events has also risen significantly, putting additional financial pressure on employer-sponsored health plans. Employers are encouraged to use data-driven approaches to identify at-risk populations and implement targeted interventions to control costs and improve health outcomes.

Indexed universal life insurance reached $1.3B

By Allison Bell – Sales of a cash-value life insurance product that has launched a thousand bitter debates on LinkedIn climbed in the fourth quarter of 2025, according to new issuer survey data from LIMRA. The issuers reported $1.3 billion in sales of indexed universal life insurance for the quarter, up 12% from the total recorded in the fourth quarter of 2024. The number of IUL policies sold rose 13%, year-over-year. The total value of individual life sales increased 6%, to $4.9 billion, and the total number of individual life policies increased rose 9%. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Growth in Indexed Universal Life Sales: The fourth quarter of 2025 saw a notable increase in both the sales and number of indexed universal life (IUL) insurance policies, reflecting growing consumer interest in these products. The rise in sales and policy counts outpaced the overall growth in individual life insurance, suggesting IULs are gaining market share. This trend may indicate a shift in consumer preferences toward products that offer both life coverage and investment-linked features.

2. Technology’s Role in Accessibility: Advances in technology have contributed to the increased uptake of IUL policies by streamlining the application and underwriting processes. Automation, digital applications, and improved marketing have made it easier and faster for clients to obtain life insurance. These technological improvements may be reducing barriers for both consumers and insurers, potentially broadening the market for cash-value life insurance products.

3. Debate Over Product Merits and Risks: Indexed universal life insurance remains a subject of debate, with critics warning about the potential for misleading sales practices and unrealistic performance expectations. Some consumers may be exposed to financial risks if they do not fully understand the product or if premium financing arrangements do not perform as anticipated. Supporters, however, argue that when properly structured and managed, IULs can offer valuable flexibility and inflation protection in addition to a death benefit.

How employers can drive year-round engagement in benefits

By Sarah Donahue – For many HR and benefits teams, the end of open enrollment marks a long-awaited conclusion to months of preparation, hosting info sessions, updating plan documents, responding to employee questions, and supporting decision-making around health and financial benefits. But in between enrollment periods, prioritizing engagement is just as important. Surveys and other industry research consistently show a significant drop off in employee benefits awarenessand usage shortly after plan elections are made. Many workers forget what they enrolled in, struggle to understand and navigate plan details, or delay using resources until a crisis arises. To increase year-round engagement in health and well-being benefits, open enrollment is really the starting point, not the finish line. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Year-Round Engagement Is Essential: The article emphasizes that employee engagement with benefits should not end after open enrollment. Many employees quickly lose awareness of their benefits or do not fully understand them, leading to underutilization and missed opportunities for preventive care. Employers are encouraged to view open enrollment as the beginning of ongoing communication and support, rather than a one-time event.

2. Personalized and Timely Communication Drives Utilization: Employers can boost engagement by aligning benefits communication with employees’ life events and seasonal needs. Targeted initiatives—such as wellness campaigns in the first quarter, financial counseling during tax season, and family care resources over the summer—help keep benefits relevant throughout the year. This approach positions benefits as practical tools for everyday well-being, not just annual choices.

3. Simplification and Measurement Improve Outcomes: Complexity is a major barrier to benefits engagement, so streamlining the experience with user-friendly tools and clear access points is crucial. Employers should focus on making benefits easy to understand and use, rather than simply adding more options. Additionally, measuring engagement through metrics beyond participation—such as care gaps closed and satisfaction—enables organizations to refine their strategies and better support employee health.

Amid Opioid Addiction Treatment, Losing Insurance Tied to Mortality Risk

By Shannon Firth – Disenrollment from health plans was associated with an increased risk of mortality among patients who initiated medications for opioid use disorder (OUD), according to a retrospective cohort study. In adjusted analyses of more than 20,000 patients, ever experiencing disenrollment was associated with increased risks of all-cause mortality (HR 1.51, 95% CI 1.23-1.84) and overdose mortality (HR 1.56, 95% CI 1.17-2.09), reported Anh P. Nguyen, PhD, of Kaiser Permanente Colorado in Denver, and colleagues. Read Full Article... ^{_{(Subscription required)}}

HVBA Article Summary

1. Insurance Disenrollment Linked to Higher Mortality in OUD Treatment: A study of 20,011 patients receiving medications for opioid use disorder (OUD) found that 34.7% experienced health plan disenrollment during the study period and 2.9% died within two years of starting treatment. Patients who lost or changed coverage had higher all-cause mortality rates (17.6 vs. 14.7 per 1,000 person-years) compared with those who remained enrolled. Overdose mortality was also higher (8.9 vs. 5.4 per 1,000 person-years) among patients who experienced insurance disruptions.

2. Higher Mortality Risk Associated With Coverage Gaps or Treatment Discontinuation: Compared with patients who remained enrolled and continued OUD treatment, both insurance disenrollment and lack of treatment were linked to significantly higher mortality risk. Disenrollment was associated with a hazard ratio (HR) of 4.34 (95% CI 3.19–5.89)for overall mortality, while patients who stayed enrolled but were not receiving treatment had a similar risk (HR 4.19, 95% CI 3.24–5.43). Researchers suggested that insurance gaps may lead patients to ration or stop medications, which can disrupt recovery, increase relapse risk, and raise the likelihood of overdose.

3. Study Population and Health Factors Among Patients With OUD: The study included patients ages 16 and older treated between 2012 and 2021 at three integrated health systems in Colorado and California, with 89.2% receiving buprenorphine and 10.8% receiving naltrexone. The average patient age was 38.7 years, with 61.5% men, and the population included 67.4% White, 20% Hispanic, and 4.9% Black patients. Many participants had co-occurring conditions, including 64.1% with mental health disorders, 55.4% with other substance use disorders, 25.4% with alcohol use disorder, and 43.6% with tobacco use, which researchers noted could worsen health outcomes if care is interrupted during insurance coverage gaps.

Claude outage highlights HR’s growing AI risks

By Jen Colletta – This past weekend, Anthropic’s Claude edged out ChatGPT as the most-downloaded free app in the U.S. And, by early this week, spiking demand seemingly took the tool offline for a number of hours, on two occasions. For a handful of hours on Monday and again on Tuesday morning, thousands of Claude users reported errors and extended downtime, highlighting a growing business risk as AI, including free tools like Claude, becomes embedded in American work processes. In online chatter among users, some acknowledged just how reliant they had become on the tool; for instance, many developers admitted they hadn’t written code themselves in months. “What struck me wasn’t the outage itself. That happens. It was how quickly it exposed how much I’d already baked Claude into my workflow,” wrote one LinkedIn user. Read Full Article...

HVBA Article Summary

1. AI Dependency Risks: The outage of Claude revealed how deeply AI tools have become integrated into daily business operations, with many users expressing surprise at their reliance on the technology. This dependency can leave organizations vulnerable when such tools experience downtime or technical issues. Businesses may need to reassess their workflows to ensure continuity in the event of future outages.

2. Need for AI Resilience and Security: Experts like Kelvin Flores and Mitchell Amador emphasize that organizations often underestimate the risks associated with rapidly advancing AI technologies. Unlike traditional security tools, AI is now fundamental to how employees think, write, and make decisions, making resilience planning critical. Companies are encouraged to proactively build safeguards and backup processes into their AI architectures to mitigate potential disruptions.

3. Political and Market Forces Shape AI Adoption: The surge in Claude’s popularity coincided with political controversies, such as OpenAI’s contract with the U.S. Department of Defense and subsequent user boycotts, as well as government bans on certain AI providers. These events highlight how external factors, including public sentiment and regulatory actions, can quickly influence which AI tools businesses use. HR and business leaders must stay attuned to these dynamics to make informed technology choices.