Trump Budget Proposal Would Slash DOL Funding by 26%

By James Van Bramer - President Donald Trump on Friday proposed a 26% cut to the Department of Labor’s budget, part of a sweeping plan to slash non-defense discretionary spending by $163 billion, or 22.6%, in fiscal 2026. The budget recommendations include proposals to “Make America Skilled Again” by slashing the DOL budget by $1.6 billion, according to the White House release, leaving states and localities to allocate funding for development programs. Read Full Article…

HVBA Article Summary

1. Trump Administration Seeks Major Cuts to Workforce Programs: The budget proposal calls for fully eliminating Job Corps, a federally funded program that has provided free education and vocational training to more than 2 million young people since 1964, and slashing the Senior Community Service Employment Program, which offers part-time jobs and training to low-income seniors. The administration estimates these eliminations would save over $2 billion, arguing the programs are outdated and ineffective.

2. Political Rationale and Deep Budget Reductions: The administration frames these cuts as a way to prevent taxpayer dollars from supporting “progressive non-profits” and DEI-promoting organizations, labeling both Job Corps and the senior employment program as “failed experiments.” In total, the proposed cuts would slash about $3.63 billion—or roughly 26%—from the Department of Labor’s $13.9 billion fiscal 2025 budget, marking a significant rollback of federal workforce funding.

3. Congressional Uncertainty and Broader Budget Context: These proposals are part of a broader Republican push to extend 2017 tax cuts and reduce government spending, including a plan to gradually scale back federal pension benefits. However, opposition from Democrats, who argue the cuts would severely harm working families, and limited detail in the preliminary budget create uncertainty over whether the DOL reductions and related reforms will make it into the final reconciliation bill.

Historic Numbers Enroll in Health Insurance through State-Based Marketplaces, With Consumers Benefitting from Premium Tax Credits

By Christina Court and Hemi Tewarson - In 2025, more than 24 million Americans signed up for health insurance through the health insurance marketplaces, setting a new record for marketplace enrollment and marking the fifth straight year of their continued enrollment growth. One key driver of this growth has been the availability of federal premium tax credits, which significantly lowered health insurance premiums for millions of consumers across the country. Read Full Article…

HVBA Article Summary

1. Strong Enrollment in State Marketplaces for 2025: More than 7 million people enrolled in health coverage through 20 state-based marketplaces (SBMs) in 2025, including over 1.2 million new enrollees, reflecting sustained demand for affordable insurance options across diverse populations such as freelancers, part-time workers, and pre-retirees.

2. Enhanced Tax Credits Drive Savings and Access: Updated federal tax credits—expanded in 2021 to cap premiums at 8.5% of income and increase subsidies for those earning 100–400% of the federal poverty level—have helped millions afford coverage. SBM consumers are saving between $68 and $446 per month on premiums in 2025, boosting enrollment and reducing financial barriers to care.

3. Coverage Risks Loom as Tax Credits Set to Expire: Without Congressional action, enhanced tax credits will expire at the end of 2025, which SBMs warn could lead to sharp premium hikes, coverage losses for nearly 4 million Americans, and increased pressure on health systems due to rising uncompensated care costs.

ACA subsidies, agency staffing cuts draw strong opposition, study finds

By Alan Goforth - A majority of Americans oppose Trump administration plans to pursue broad cuts to federal health agencies and budgets, a new KFF Health Tracking Poll found. “Across a range of questions, large majorities of Democrats and independents oppose the Trump administration’s major cuts to federal health agencies and programs, while Republicans are more supportive,” the survey report said. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. MAGA Supporters Favor Cuts, General Public Opposes: While MAGA supporters strongly back cuts to federal health agencies (78% support), a clear majority of Americans—including 89% of Democrats and 67% of independents—oppose major reductions in health spending and staffing, highlighting deep partisan divides.

2. Broad Bipartisan Opposition to Medicaid and Service Cuts: About 75% of the public opposes major federal cuts to Medicaid, mental health, and addiction prevention services, with even a slim majority of Republicans (58%) resisting deep cuts to these programs despite GOP leadership’s push for budget reductions.

3. Strong Public Concern Over Health Agency Funding: Majorities across party lines oppose slashing funds for infectious disease tracking, ACA premium subsidies, and research at medical centers, though Republicans are more split—most (61%) favor cutting ACA subsidies and 56% back cuts to research, diverging from Democrats and independents who widely oppose such measures.

Life Insurance Brokers Need DOL Attention

By Howard Wolkowitz - Today, under Internal Revenue Service guidelines, career agents are considered statutory employees of the life insurer. Independent brokers do not qualify for statutory employee status. The IRS rules end up giving career agents an unfair advantage over independent agents. Certainly, independent agents are small business owners, but they also need help with buying health insurance. Read Full Article… ^{_{(Subscription required)}} 

HVBA Article Summary

1. Balancing Independence and Benefits for Agents: The Department of Labor aims to craft legislation that helps independent life insurance agents access affordable health care and retirement benefits without sacrificing their independence or flexibility. This move responds to concerns that insurers use health benefits to pressure agents into prioritizing company products over client needs.

2. Complexity and Risks in Modern Life Insurance: The life insurance landscape has grown more complex, with longer policy illustrations and rising cost-of-insurance (COI) charges. Many consumers struggle to understand non-guaranteed features, leading to policy lapses that can leave families financially unprotected, especially when agents sell unsuitable products to maintain their own benefits.

3. Calls for Regulatory Updates: To create a level playing field, experts suggest revising the IRS definition of statutory employees and enabling independent marketing organizations (IMOs), brokerage general agencies (BGAs), and tech firms to offer health benefits. This would empower independent agents to prioritize clients' best interests without undue pressure from insurers.

High-deductible health plans slash use of recommended care, JAMA study finds

By Allison Bell - Use of high-deductible health plans may lower the odds that employees and dependents with asthma, diabetes and other common health problems will get the recommended care. Risha Gidwani, a public health researcher at the University of Colorado medical school, and two colleagues have published data supporting that possibility in a new JAMA Network Open paper on how use of HDHPs affects care for people with chronic conditions. Read Full Article… ^{_{(Subscription required)}} 

HVBA Article Summary

1. HDHPs Linked to Lower Rates of Recommended Care for Chronic Conditions: The study, using national claims data from 2016–2019, revealed that adults with high-deductible health plans (HDHPs) were 7.8% less likely to receive standard recommended care than those with traditional coverage. Key gaps included a 4.1% drop in office visits, an 11% decline in recommended lab tests, and a 22% reduction in prescription drug use—highlighting serious concerns about HDHPs’ effects on chronic disease management and overall health outcomes.

2. Heart Failure Patients Showed Slightly Better Outcomes Despite HDHP Coverage: Unlike other chronic condition groups, HDHP enrollees diagnosed with heart failure were about 7% more likely to receive recommended care compared to their peers with traditional plans. However, researchers stressed that the standards used in the study—such as one medical visit per year—represent only minimal care benchmarks, underscoring the need for closer attention to care quality across all chronic conditions.

3. Policy Push to Improve Preventive Coverage for HDHPs Gains Momentum: Recognizing the shortcomings of HDHPs for patients with chronic illnesses, policymakers are advancing initiatives like the Chronic Disease Flexible Coverage Act, which seeks to solidify and expand pre-deductible coverage of critical services. This builds on Affordable Care Act provisions that already mandate HDHPs cover certain preventive care without out-of-pocket costs, aiming to make HDHPs more patient-friendly and supportive of long-term health management.

Government health programs weighed on insurers in Q1

By Lauren Berryman - Health insurance companies can't seem to shake high medical costs, although some are enduring the pressure better than others. UnitedHealth Group, CVS Health, Elevance Health, Humana and other companies operating health insurance businesses over the last few weeks reported first-quarter earnings that shed light on cost and utilization trends. Read Full Article…

HVBA Article Summary

1. Medicare Advantage Pressures Continue to Mount: UnitedHealthcare faced significant financial setbacks in Q1 2025 due to unexpectedly high Medicare Advantage costs, prompting a rare earnings downgrade. While CVS Health, Elevance Health, and Humana also reported rising Medicare Advantage expenses—driven by inpatient, outpatient, and pharmacy costs—only UnitedHealthcare saw outsized financial strain so far, raising investor concerns that others could face similar issues later this year.

2. Ongoing Struggles in the Health Insurance Exchange Market: CVS Health’s Aetna unit expects up to $400 million in losses from its individual exchange business in 2025 and has announced a market exit by 2026, while Molina Healthcare also reported exchange-related financial hits. In contrast, Centene saw stronger-than-expected exchange performance, but insurers remain cautious as enhanced federal premium tax credits are set to expire, risking market instability and potential insurer exits.

3. Medicaid Faces Uncertainty Amid Political Risks: Health insurers are preparing for possible Medicaid cuts of up to $880 billion under the Trump administration’s proposals, which could dramatically reshape state payment rates. Although Molina, Humana, Centene, and Elevance secured higher Medicaid reimbursements recently, rising costs—especially for long-term care and weight loss drugs—continue to pressure margins, with future funding reductions posing a major financial threat.

Over 400,000 hit in massive employee benefits data breach — Social Security numbers and more exposed

By Amber Bouman - A firm that focuses on employee benefits enrollment, Kelly & Associates Insurance Group, Inc. (Kelly Benefits) sent a notice to clients to alert them that thousands of them had their data exposed in a cyberattack. As reported by CyberNews, the company has confirmed, both in the client notice as well as in a filing with the Maine Attorney General’s office, that they noticed suspicious activity on March 3, 2025 and then confirmed though an internal investigation that a cyberattack had occurred and that threat actors had gained access to their network between December 12 and 17th 2024. Read Full Article…

HVBA Article Summary

1. Kelly Benefits Data Breach Exposed Sensitive Client Information: The company confirmed that hackers accessed and stole files containing names, Social Security numbers, and financial account details of 413,032 individuals, raising serious risks of identity theft, fraud, and phishing attacks.

2. Response Measures Include Free Credit Monitoring: To mitigate potential harm, Kelly Benefits is offering affected individuals 12 months of complimentary credit monitoring and top-tier identity theft protection, while urging clients to remain vigilant for any suspicious account activity.

3. Best Practices for Personal Security Post-Breach: Experts recommend taking advantage of free protection services, monitoring accounts closely, considering a credit freeze, and enhancing digital safety with tools like antivirus software, VPNs, and password managers—alongside staying alert for phishing scams and suspicious communications.