Insurers innovate to keep up with rising commercial costs

By Rylee Wilson - Healthcare costs keep rising, and employers are looking for new ways to manage their employees’ care. In a survey published by Imagine360, more than a third of respondents said they had skipped or postponed necessary healthcare because of the cost. Read Full Article…

HVBA Article Summary

1. Direct Contracting and Cost Savings: Imagine360 reduces healthcare costs by contracting directly with health systems and utilizing reference-based pricing, which has delivered significant savings—for example, cutting Rollins' annual healthcare spend by 19% ($7.7 million). This model offers more competitive rates than traditional PPOs by steering patients toward high-performance hospital systems.

2. Shifting Plan Design Priorities: Imagine360’s survey highlights growing employee concerns over affordability, with health insurance premiums and out-of-pocket maximums ranked as top cost drivers. The market is responding with new plan designs—such as UnitedHealthcare’s deductible-free Surest plan and other low-cost options from Aetna and Health Care Service Corp.—to reduce financial barriers to care.

3. Future Trends in Employer Health Plans: As employees show greater willingness to travel for lower-cost care and accept narrower networks, Imagine360 is expanding its reach to both small and large employers. CEO Jeff Bak predicts a long-term shift away from broad PPO networks and high-deductible plans toward designs that better incentivize appropriate use of care, balancing access, cost, and quality by 2035.

Trump releases 2026 budget including heavy healthcare cuts

By Rebecca Pifer - The 40-page request sent to Congress by Office of Management and Budget Director Russell Vought includes a 23% cut to the government’s discretionary funding and a 13% increase in military spending overall. If enacted, the HHS would have its discretionary funding cut by 26%. Read Full Article…

HVBA Article Summary

1. Major Cuts to NIH, CDC, and Key Health Agencies: The budget proposes slashing nearly $18 billion from the NIH—its largest cut ever—while reorganizing its research areas and eliminating funding for minority health, nursing research, and global health. The CDC would lose $3.6 billion, with entire centers for chronic disease, environmental health, and injury prevention shuttered, alongside deep cuts to other HHS agencies focused on underserved populations and mental health.

2. Elimination of Safety Net and Public Health Programs: Programs like the Low Income Home Energy Assistance Program would be completely shut down, and federal public health preparedness efforts would be defunded, with responsibilities shifted to states. Despite these cuts, a $500 million increase is proposed for “Make America Healthy Again” initiatives centered on nutrition and exercise.

3. Sharp Political Divide and Pushback: While Republican leaders defend the budget as a way to cut waste and tighten fiscal discipline, medical groups, patient advocates, and Democrats warn that the cuts will undermine U.S. health infrastructure, hamper scientific research, and harm vulnerable populations—raising concerns about national competitiveness and public health risks.

Benefits at a crossroads: How to futureproof your agency

By Emily Payne - The benefits industry is at a crossroads. As has happened before, it’s time to adapt, to lean into the new world order. In a recent session at the BenefitsPRO Broker Expo, Chelsea Ryckis and Donovan Ryckis of Ethos Benefits not only packed the history of the benefits industry into less than an hour, they outlined how the profession has evolved and reinvented itself to keep up. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. The Benefits Industry Has Transformed Through Decades of Change: From its post-WWII beginnings through pivotal legislation like ERISA, ACA, and the CAA, the employee benefits industry has undergone seismic shifts. What was once a transactional, rate-driven marketplace—where cold-calling and basic renewals dominated—has evolved into a complex field requiring expertise in compliance, data analytics, and strategic consulting, with brokers now playing a critical advisory role amid rising costs and growing regulatory demands.

2. Today's Brokers Face Expanding Challenges and Rising Expectations: Escalating healthcare costs, heightened compliance requirements, and increasing demands for transparency have fundamentally changed the broker-employer dynamic. Brokers are expected to act as problem-solvers, leveraging advanced data insights, ensuring fiduciary responsibility, and crafting innovative plan designs that align with client needs—moving well beyond traditional sales tactics to deliver measurable, value-added outcomes.

3. Future Success Demands Adaptation, Specialization, and Innovation: To remain competitive, brokers must build strong digital brands, invest in predictive analytics and claims data, and form specialized teams skilled in compliance and technology. Embracing AI tools, offering consultative audits, and fostering continuous client feedback will be essential strategies as the industry moves toward universal transparency, stronger CAA enforcement, and a deeper focus on ROI-driven healthcare solutions.

GLP-1 RA Use for Obesity Soars Among US Adults Without Diabetes

By Shrabasti Bhattacharya - Nationally representative survey data revealed that glucagon-like peptide 1 receptor agonists (GLP-1 RAs) use for obesity treatment more than tripled among US adults without diabetes between 2018 and 2022, with annual expenditures reaching $5.8 billion in 2022. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. GLP-1 RA Use Among Non-Diabetic Adults Increased but Remains Limited: The study found that GLP-1 RA use among U.S. adults without diabetes rose from 0.1% (2018–2021) to 0.4% in 2022—equating to approximately 854,728 individuals—but still represented just 1 in 250 adults, highlighting modest adoption despite widespread eligibility.

2. National Spending on GLP-1 RAs Tripled Between 2018 and 2022: Annual U.S. spending on GLP-1 RAs for non-diabetic adults surged from $1.6 billion in 2018–2021 to $5.8 billion in 2022, driven by a mean of 4.1 prescriptions per user and an average prescription cost exceeding $1,500, though out-of-pocket expenses remained low at $34.68 per prescription.

3. Barriers to Access Persist Despite Low Out-of-Pocket Costs: While average out-of-pocket costs were relatively contained, the study noted that individuals without private insurance were less likely to access GLP-1 RAs, suggesting that high drug prices and insurance coverage gaps continue to limit broader adoption of obesity treatments.

Marketing Tactics Can Improve Your Benefits Engagement Strategy

By Marcy Klipfel - When speaking to HR peers and clients lately, I’ve noticed that employee engagement is rising to the top of their organizational priorities. To attract, retain and engage talent, companies are investing in a broad, diverse spectrum of benefits. However, healthcare-related costs are skyrocketing, having increased by 24% since 2019. Considering benefits rank among the top influences on retention, HR leaders and our teams are under pressure to maximize return on investment (ROI). Read Full Article…

HVBA Article Summary

1. Leverage AI to Drive Year-Round Benefits Engagement: Implement benefits communication campaigns using AI to personalize and simplify information, making it easier for employees to engage with and understand their benefits. Strategies include targeted email campaigns and centralized digital hubs that keep benefits front and center throughout the year.

2. Simplify and Personalize Benefits Education: Go beyond awareness by using plain-language messaging and multiple communication channels—such as email, text, and benefits fairs—to ensure employees fully understand their options. Ongoing education, not just during enrollment, helps maintain engagement and empowers employees to make informed choices.

3. Enhance Enrollment with Decision Support Tools: Provide employees with AI-powered decision support, plan comparison charts, and explainer text to guide them toward cost-effective, right-fit benefits. Virtual assistants and chatbots can offer real-time help, making complex benefits easier to navigate and boosting confidence during enrollment.

Trump moves to incentivize domestic drug manufacturing: 6 notes

By Erica Carbajal - On May 5, President Trump signed an executive order aimed at boosting domestic production of prescription drugs and active ingredients. Read Full Article…

HVBA Article Summary

1. Expedited Approvals and Facility Construction: A new executive order directs the FDA and EPA to fast-track approvals for domestic drug manufacturing plants by streamlining reviews, cutting duplicative requirements, and accelerating construction of facilities for prescription drugs and raw materials, aiming to reduce reliance on foreign supply chains.

2. Stronger Oversight and Foreign Disincentives: The order mandates higher inspection fees for foreign manufacturing plants and empowers the FDA to expand oversight with increased domestic inspections and surprise visits to foreign sites, addressing concerns about inconsistent regulatory scrutiny between U.S. and overseas manufacturers.

3. Supply Chain Resilience and Industry Impact: While industry leaders, including Premier, support efforts to boost domestic production as a way to strengthen supply chain resilience, they warn of higher production costs and emphasize that broader strategies—such as tax incentives and trade partnerships—are essential to sustainably expand U.S.-based pharmaceutical manufacturing.

4 Ways to Help Workers Manage Pain-Related Mental Health Challenges

By Mara Baer - One in four people in the U.S. live in chronic pain, pain that lasts three months or more. Approximately 40% are in the workforce and while physical limitations associated with pain get the most attention by employers, the mental health impacts of chronic pain are just as important. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Chronic Pain’s Hidden Toll on Employees: Workers experiencing chronic pain report heightened loneliness (42%), reduced job satisfaction (64% are less likely to find their work rewarding), and a greater sense of discrimination (28% more likely), alongside increased anxiety, depression, and cognitive difficulties—all of which diminish productivity and well-being.

2. The Need for Proactive Employer Support: Chronic pain’s often invisible nature makes it challenging to identify struggling employees, while workplace policies and culture can unintentionally create barriers to support, underscoring the importance of recognizing pain’s mental health impact to prevent absenteeism, presenteeism, and disengagement.

3. Actionable Strategies for a Supportive Workplace: Employers can foster inclusion and productivity by cultivating a supportive culture, offering flexible work arrangements, enhancing mental health and pain management resources, and reviewing policies to ensure they accommodate the needs of employees managing chronic pain and related mental health conditions.