92% of healthcare organizations experienced a cyberattack in 2024

By Naomi Diaz - In the past 12 months, 92% of healthcare organizations reported experiencing at least one cyberattack, up from 88% in 2023, an Oct. 8 survey from Proofpoint and Ponemon Institute found. Read Full Article…

HVBA Article Summary

1. 69% of organizations reported disruptions to patient care as a direct consequence of cyberattacks, highlighting the significant operational impact on healthcare services.

2. 56% of organizations experienced poor patient outcomes, such as delays in procedures and tests, with 28% seeing an increase in patient deaths, a notable rise from last year's 5% increase.

3. Supply chain attacks were the most damaging, with 82% of affected organizations reporting disruptions to patient care, up from 77% in the previous year, while business email compromise led to poor outcomes in 69% of cases.

What if you could choose how to use your 401(k) match? One company's trying that.

By Medora Lee - The 401(k)-retirement account continues to evolve, with a recent IRS ruling allowing employees the power to choose how to allocate their company’s contributions. Read Full Article…. 

HVBA Article Summary

1. Employee Flexibility: The ruling lets employees choose where their employer's 401(k) match goes, including retirement accounts, health savings, student loans, or retiree health-reimbursement, with unchosen funds defaulting to retirement.

2. Broader Implications: Though limited to one company, this ruling could inspire other companies to request similar flexibility in their 401(k) plans.

3. Employee Trade-offs: While this offers relief for debt, diverting funds from retirement may reduce long-term growth, requiring careful consideration of priorities.

US approves temporary imports of IV fluids as hospitals grapple with storm-related shortages

By Nathaniel Weixel - Federal health officials have approved the import of certain IV fluids from overseas as hospitals across the country scramble to deal with a Hurricane Helene-inflicted shortage. Read Full Article…

HVBA Article Summary

1. IV Fluid Shortage Crisis: Hurricane Helene damaged Baxter International's IV fluid plant in North Carolina, leading to over 86% of healthcare providers facing shortages, with many considering canceling elective procedures.

2. FDA Response and Temporary Imports: The FDA approved temporary imports of IV fluids from Baxter's international facilities to address shortages and is working to expedite alternative manufacturing options.

3. Manufacturers' Recovery Efforts: Baxter plans to restart production at its damaged facility by year-end, while B. Braun will soon resume operations at its Florida plant, demonstrating resilience amid the crisis.

CVS layoffs will include more than 400 employees at Aetna

By Michael Popke - On the heels of its recent announcement that CVS Health will eliminate about 2,900 jobs nationwide, the health care giant is providing more details about where the cuts are taking place. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. Employee Reductions: CVS will lay off 416 employees at its Aetna subsidiary in December, following 600 layoffs earlier in 2023, with most affected positions being remote.

2. Cost-Saving Initiatives: The layoffs are part of CVS's plan to save $2 billion through expense reductions and investments in technologies like AI and automation, primarily impacting corporate roles.

3. Strategic Review: These layoffs coincide with CVS Health's exploration of separating its insurance and retail divisions amid Aetna's declining revenues and a recent leadership change.

US FDA to reconsider decision barring compounded versions of Lilly weight loss drug

By Brendan Pierson - The U.S. Food and Drug Administration on Friday agreed to reconsider a decision it made last month to bar drug compounders from selling their own versions of Eli Lilly's (LLY.N) blockbuster weight loss and diabetes drugs. Read Full Article…

HVBA Article Summary

1. FDA Reassessment of Compounded Drugs: The FDA will allow compounding pharmacies to continue providing Zepbound and Mounjaro while reviewing the shortage status of tirzepatide, following a lawsuit from the Outsourcing Facilities Association.

2. Impact on Patient Access and Costs: The previous FDA decision threatened access to cheaper compounded versions of these drugs, which many patients rely on, especially since insurers often do not cover weight loss medications.

3. Legal and Regulatory Context: The Outsourcing Facilities Association welcomed the FDA's reconsideration amid ongoing demand for compounded drugs, which can only be sold to address shortages per federal regulations.

HealthCare.gov managers prepare for possible 2026 crash

By Allison Bell - Congress could crush 2026 HealthCare.gov sales. If sales plummet, health insurers will have to pay higher user fees on the health plans they still manage to sell through HealthCare.gov, HealthCare.gov managers warn in a draft version of the notice describing how HealthCare.gov and other Affordable Care Act health insurance programs will work in 2026. Read Full Article… ^{_{(Subscription required)}}

HVBA Article Summary

1. User Fee Changes: HealthCare.gov's user fee is currently 2.2% of monthly premiums, dropping to 1.5% for 2025. If Congress does not renew ACA subsidies, it may rise to 2.5%.

2. Impact of Subsidy Renewal: Renewing ACA subsidies by March 31, 2025, could set the user fee between 1.8% and 2.2%, affecting various HealthCare.gov calculations and payments.

3. Potential Enrollment Effects: The subsidy debate is critical; not renewing them could increase the uninsured from 27 million to 31 million, with a projected federal cost of $251 billion over ten years.

CMS proposes risk adjustment changes, broker fraud crackdown for 2026 plan year

By Noah Tong - A proposed rule from the Centers for Medicare & Medicaid Services (CMS) released Oct. 4 would protect beneficiaries from shady broker behavior and modify the federal risk adjustment program, among other changes. Read Full Article…

HVBA Article Summary

1. Increased Accountability for Brokers: CMS proposes to hold insurance agents accountable for Marketplace violations, potentially leading to suspensions, to address fraudulent enrollment practices.

2. Adjustments to Risk Adjustment Models: CMS plans to recalibrate the risk adjustment model to include new data and change the handling of hepatitis C drugs, adding PrEP services to risk calculations.

3. Changes in Premium Payment Thresholds: The proposed rule introduces new thresholds allowing members to keep coverage even if premium payments are partially unmet, enhancing health equity.