Senate committee schedules hearing for Trump's pick to lead DOL's benefits unit

By Allison Bell - The administration of President Donald Trump may be closer to getting a leader for a key federal employee benefits agency. The Senate Health, Education, Labor and Pensions Committee has included Daniel Aronowitz, Trump's nominee to be the assistant secretary of Labor in charge for the Employee Benefits Security Administration, on a list of nominees to be reviewed at a hearing scheduled for June 5. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Aronowitz’s background and experience: Aronowitz is a well-established labor lawyer with deep expertise in the employee benefits space, having served as president of Encore, a company offering fiduciary and liability insurance to benefit plans, and earlier as president of Ullico Casualty Company. Notably, he made a personal sacrifice in 2011 by donating one of his kidneys to his mother-in-law, reflecting a strong sense of commitment both professionally and personally.

2. Potential role as EBSA administrator: If confirmed, Aronowitz would take on a pivotal leadership role at the Employee Benefits Security Administration (EBSA), where he would be responsible for developing, updating, and enforcing key regulations governing employer-sponsored health and retirement plans. He would also work closely with agencies like the IRS and CMS to modernize rules around individual coverage health reimbursement arrangements, flexible spending accounts, and other employer health-related offerings.

3. Key regulatory focus areas: A major part of Aronowitz’s portfolio under the Trump administration would involve deciding the future of the currently paused mental health parity non-quantitative treatment limits regulations. These rules significantly impact how health plans manage access to inpatient mental health care and determine provider reimbursement, making his decisions central to shaping mental health benefits for millions of Americans.

When Medicaid Cost Cutting Is Simply Cost Shifting

By Scott H. Schnell - With the “big, beautiful bill” to advance President Trump’s America First agenda passed by the U.S. House of Representatives on May 22nd, all eyes are on members of the U.S. Senate as they weigh in with their own ideas about what should be in the legislation. Read Full Article…

HVBA Article Summary

1. Ongoing debate over Medicaid cuts centers on balancing federal savings and potential coverage losses: Proposals to adjust Medicaid spending, including moving up work requirements to no later than December 31, 2026, aim to reduce projected federal costs by nearly $700 billion over the next decade. The Congressional Budget Office estimates these changes could affect coverage for approximately 8.6 million low-income and disabled individuals. Public opinion data shows that a majority of Republican voters support maintaining or increasing Medicaid funding, reflecting the complexity of political and economic considerations.

2. Proposed reforms include work requirements, enhanced eligibility checks, and limiting access for undocumented immigrants: Supporters suggest work requirements could generate $109 billion in savings, and enhanced eligibility verification could reduce fraudulent enrollments, potentially saving $160 billion. However, reports indicate that many Medicaid recipients already work or face legitimate barriers to employment, and most improper payments result from administrative documentation issues rather than fraud. Proposals to exclude undocumented immigrants aim to control program costs but also raise questions about public health impacts and uncompensated care burdens.

3. Discussions continue on whether Medicaid changes will deliver long-term savings or shift costs elsewhere: Some stakeholders emphasize that cuts to Medicaid could lead to cost shifting across the healthcare system, such as increased burdens on hospitals and higher insurance premiums. Others highlight the potential for reforms to improve program efficiency and reduce waste. Policymakers are weighing whether the proposed measures will achieve meaningful, sustainable cost reductions or simply redistribute expenses across different sectors of the healthcare system.

'Most Favored Nation' Drug Pricing Is the Headline — But the Real Crisis Runs Deeper

By Marschall S. Runge, MD, PhD - The outrage over prescription drug pricing in the U.S. is justified. Americans routinely pay two to three times more for medications than patients in other high-income countries. Even drugs developed with American science and manufactured on American soil often cost less abroad. Read Full Article… 

HVBA Article Summary

1. Drug pricing reform is necessary but not sufficient: Measures like the “Most Favored Nation” executive order and various congressional proposals target pharmacy costs, but without tackling the broader system — profit-driven intermediaries, administrative waste, and short-term insurance incentives — overall healthcare remains unaffordable and inefficient.

2. PBM overhaul and direct-to-consumer models can unlock savings: Pharmacy Benefit Managers currently obscure true costs through opaque rebate practices and spread pricing. Strengthening transparency requirements, banning spread pricing, and promoting direct-to-consumer platforms (e.g., Mark Cuban’s Cost Plus Drugs) would ensure negotiated discounts reach patients at the point of sale.

3. Leverage public purchasing power and trim bureaucracy while preserving innovation: Expanding Medicare’s negotiation authority and adopting large-scale, value-focused purchasing (akin to big employers and national health systems) could drive down prices. Simultaneously, reducing administrative bloat — which consumes 12–15% of private premiums versus 2% in Medicare — would yield greater savings, all without undermining the incentives that fuel U.S. pharmaceutical innovation.

How uninsured rates could change under current Medicaid, ACA proposals, state by state

By Elizabeth Hopkins - Florida would see the largest increase in its uninsured population if ACA premium tax credits are not extended, and Medicaid work requirements and other changes are implemented, according to KFF. Lawmakers are considering a reconciliation package that would implement Medicaid work requirements. The provisions in the bill are evolving, but the Congressional Budget Office estimates 8.6 million more people will be uninsured by 2034. Read Full Article…

HVBA Article Summary

1. States with the largest uninsured increases: By 2034, Florida (1.8 million), Texas (1.6 million), California (1.5 million), and New York (810,000) are projected to experience the biggest jumps in the number of uninsured individuals, highlighting not only their large populations but also persistent healthcare access and affordability challenges that could strain state health systems and local economies.

2. Highest percentage point increases: Florida is expected to lead with a projected 7 percentage point rise, while the District of Columbia, Georgia, Louisiana, Mississippi, Texas, and Washington each face a 5 percentage point increase, signaling sharp relative growth in uninsured populations that could widen health disparities and increase pressure on safety-net services.

3. Smaller but widespread increases: Even states with smaller absolute numbers, such as Wyoming (9,500), Vermont (18,000), and North Dakota (21,000), will see percentage increases of 2–3%, demonstrating that the rise in uninsured individuals is a nationwide issue affecting both large and small states and potentially reshaping local healthcare dynamics across the country.

Many employers unaware of ICHRA health coverage option, study finds

By Michael Popke - A first of its kind report about how Individual Coverage Health Reimbursement Arrangements are perceived by both employers and benefits consultants reveals an evolving market that has plenty of room to grow. In fact, despite ICHRAs offering an alternative to traditional group health insurance, employer awareness gaps persist. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Limited Employer Awareness, High Potential for Growth: Nearly half (46%) of employers not currently offering an ICHRA (Individual Coverage Health Reimbursement Arrangement) have never even heard of the option, and only 27% of those who are aware learned about it through their benefits consultant — revealing a significant knowledge gap. However, the report emphasizes that employers are open to learning more, especially when proactive, structured education is provided, making this a strong opportunity for market growth.

2. Consultants’ Leadership Shapes Adoption, Satisfaction, and Outcomes: While benefits consultants generally possess deeper knowledge of ICHRA compared to their employer clients, that expertise often isn’t communicated in ways that spark meaningful action or adoption. The report highlights that when consultants actively lead discussions and provide clear guidance, employers report higher satisfaction and are better equipped to make informed decisions, giving proactive consultants a competitive advantage in the marketplace.

3. Steady Adoption Driven by Clear Benefits Despite Misconceptions: Although misconceptions and perceived complexities still present barriers, ICHRA adoption is steadily rising due to its clear advantages, including cost savings for employers and improved employee satisfaction. The report suggests that consultants and employers who embrace and present these alternatives are positioning themselves at the forefront of smarter, more flexible healthcare solutions, helping to drive industry-wide progress.

Soaring healthcare costs driven by GLP-1s and mental health needs

By Alyssa Place - The 2025 healthcare landscape is being shaped by a combination of rising costs, evolving employee expectations, technological innovation, and breakthrough medical treatments, according to recent research gathered from nearly 300,000 health plan users. According to CBIZ's annual State of Healthcare report, one of the most significant cost drivers this year is the increasing popularity of GLP-1 weight loss drugs, such as semaglutide injections like Ozempic and Wegovy. Read Full Article… ^{_{(Subscription required)}} 

HVBA Article Summary

1. Rising Costs and GLP-1 Impact: GLP-1 medications, originally for type 2 diabetes but now widely used for weight loss and reducing cardiovascular risks, are significantly driving up healthcare expenses. With monthly costs between $1,000–$1,500, 56% of large employers report a major cost impact, and 67% cover these drugs for obesity treatment — highlighting the urgent need for combining medication coverage with behavior change strategies to manage costs effectively.

2. Employer Strategies and Personalization Trends: Employers are responding to overall healthcare cost increases (projected at 5.8% in 2025) by using strategies like higher premiums, deductibles, and self-insured models, while also expanding mental health, telehealth, and resilience benefits. There’s a strong shift toward personalized, flexible benefits packages that address the needs of a multigenerational workforce — from student loan repayment for younger workers to eldercare and retirement planning for older employees.

3. Technology Integration and Regulatory Pressures: AI-driven platforms and digital health tools are transforming benefits administration, making healthcare access smoother and more efficient. At the same time, new regulatory standards are pushing employers to improve transparency and communication around plan design and costs, helping strengthen employee trust and engagement in an evolving benefits landscape.

Promising Oral Obesity Treatment Mimics Gastric Bypass

By Marilynn Larkin - An oral obesity treatment (SYNT-101) that mimics the metabolic effects of gastric bypass established preliminary safety, tolerability, and efficacy in a first-in-human study. Read Full Article…

HVBA Article Summary

1. Successful Formation and Safety: Endoscopic imaging confirmed that SYNT-101’s temporary polymer coating effectively lined the upper small intestine, was safely eliminated within 24 hours, and showed no adverse events or gastrointestinal issues across all dose groups, with participants reporting no pain.

2. Stable Metabolic and Liver Measures: Plasma and liver enzyme levels, including leptin, ghrelin, aspartate transaminase, alanine transaminase, and bilirubin, remained stable and within normal ranges for all participants over the 10 days post-treatment, indicating strong metabolic tolerance.

3. Promising Impact on Glucose Absorption: Oral glucose tolerance tests revealed delayed glucose uptake — about 35% lower at 30 minutes and 21% lower at 60 minutes compared to untreated individuals — supporting SYNT-101’s potential to modulate nutrient absorption for glycemic control and weight management, offering a possible oral alternative or complement to GLP-1 therapies.