Health Insurers Are Using Venture Capital Investments To Expand Their Reach

By Seth Glickman - Health insurance companies are aggressively expanding to adjacent markets and services, a strategy that has led insurers to make venture investments in companies that provide or enable health care services. Read Full Article…

HVBA Article Summary

1. Insurers' Investments and Conflicts of Interest: Health insurers' investments in clinical service companies raise concerns about conflicts of interest, as they can influence these companies' success through payment rates and contracts, with potential conflicts evident in 89% of portfolio companies.

2. Valuation Boosts and Market Weaknesses: Insurers' investment strategies significantly raise early-stage company valuations, but market performance has faltered, with a 40% drop in IPO company values from 2019-2024.

3. Need for Transparency and Regulation: The article calls for more transparency, conflict-of-interest disclosures, and regulatory oversight to ensure venture investments genuinely improve healthcare rather than just benefiting insurers.

Balancing the costs of GLP-1 weight loss drug coverage: New CBO report has some answers

By Allison Bell - For Medicare, offering the new GLP-1 agonist drugs to all enrollees who are obese and to overweight enrollees with health problems could save about $650 per year per medication user by 2034, according to new estimates from the Congressional Budget Office. Read Full Article…. ^{_{(Subscription required)}}

HVBA Article Summary

1. Costs and Savings: The CBO projects $4,300 per user in federal spending on GLP-1 agonists by 2034, with potential savings growing by 2044, though costs may still exceed savings.

2. Employer and Medicare Impact: Medicare's GLP-1 coverage decisions could significantly influence employer health plans and reshape the broader healthcare market.

3. Cost-Benefit Balance: Employers must weigh the costs of covering weight-loss drugs against potential savings from reduced healthcare spending on conditions like diabetes and heart disease.

WTW: Employers are focusing on plan designs to manage healthcare costs

By Ginger Christ - About a third plan to shift costs to workers via premium contributions, and 20% expect to promote account-based health plans or high-deductible health plans, the survey found. Read Full Article…

HVBA Article Summary

1. Rising Healthcare Costs: U.S. employers are anticipating a 7.7% increase in healthcare costs for 2025, up from 6.9% in 2024 and 6.5% the previous year, according to WTW's 2024 Best Practices in Healthcare Survey, reaching a post-pandemic high.

2. Cost Management Strategies: Nearly half of employers report healthcare costs will exceed budget projections for the year and are focusing on cost-effective plan designs, such as lower-cost, higher-quality provider networks and sites of care, to manage expenses.

3. Alternative Cost-Saving Initiatives: Employers are exploring initiatives like promoting drug discount cards and direct-to-consumer prescription delivery options to reduce out-of-pocket costs, with 21% considering these strategies for the next two years.

Who actually owns the health benefit experience?

By Ben Callaghan - While user-friendly interfaces have become table stakes across most industries, much of today's consumer-facing healthcare technology lags behind. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Fragmented Accountability: Responsibility for healthcare benefits is dispersed across multiple entities, leading to disjointed technology and a poor user experience, especially in self-funded plans.

2. Healthcare Complexity: The system is too complex for most members to navigate without better tools, causing confusion and higher medical debt.

3. Limited Incentives for Innovation: Healthcare lacks competitive pressure to improve user experience, often seeing it as a non-essential cost despite potential benefits like higher satisfaction and cost savings.

Weight loss drug coverage could cost Medicare $35B by 2034, CBO says: 4 notes

By Erica Carbajal - Authorizing Medicare to cover weight loss drugs would cost the federal government an estimated $35 billion over nine years, according to a new report from the Congressional Budget Office. Read Full Article…  

HVBA Article Summary

1. Medicare Coverage Expansion: The policy would extend Medicare coverage for GLP-1 weight loss drugs to nearly 13 million older Americans with obesity or certain overweight conditions.

2. Limited Health Savings: Estimated savings from better health outcomes would be modest, ranging from $50 million in 2026 to $1 billion by 2034 as drug costs decline.

3. Uncertain Cost Estimates: CBO's estimates are uncertain due to evolving data on drug use, pricing, and eligibility, with Medicare currently covering GLP-1 drugs mainly for diabetes.

KFF: Employer family premiums rose by 7% in 2024

By Paige Minemyer - Family premiums in employer-sponsored coverage grew by 7% in 2024, averaging $25,572, according to a new report from KFF. Read Full Article…

HVBA Article Summary

1. Premium and Employee Costs: Family health premiums rose 7% in 2024, while employee contributions grew only 5% since 2019.

2. Coverage Differences by Employer Size: Premiums were similar across employer sizes, but smaller companies had higher average deductibles ($2,575 vs. $1,538).

3. Specific Benefit Coverage: Coverage for GLP-1 drugs and fertility treatments varied, with large employers less likely to cover these compared to small firms.

How to differentiate your offerings with nontraditional voluntary benefits

By Eleanor Heck - In the benefits marketplace, you must provide innovative solutions that meet the evolving needs of the workforce. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Stand Out with Nontraditional Benefits
   Offering nontraditional benefits helps brokers differentiate by addressing the modern workforce's demand for comprehensive support beyond standard health and retirement plans.

2. Tailor and Broaden Offerings
   Customized benefits packages and diverse options, supported by vendor partnerships, make benefits more appealing and competitive for clients.

3. Address Modern Needs with Unique Solutions
   Employers can attract and retain talent by offering benefits like supplemental health, student loan repayment, volunteer time off, short-term disability, and identity theft protection.