Daily Industry Report - October 15

Your summary of the Voluntary and Healthcare Industry’s most relevant and breaking news; brought to you by the Health & Voluntary Benefits Association®

Jake Velie, CPT
Vice Chairman & President
Health & Voluntary Benefits Association® (HVBA)
Editor-In-Chief
Daily Industry Report (DIR)

Robert S. Shestack, CCSS, CVBS, CFF
Chairman & CEO
Health & Voluntary Benefits Association® (HVBA)
Publisher
Daily Industry Report (DIR)

5 worst states for obesity

By Allison Bell - The past few years have been hard on Americans' ability to control their weight. About 34.2% of the working-age Americans in a typical state were classified as obese in 2023. Read Full Article… (Subscription required)

HVBA Article Summary

  1. Rising Obesity Rates: The median obesity rate for adults ages 18-64 rose from 30.8% in 2018 to 34.3% in 2023, with some states seeing increases of over 5 percentage points.

  2. Geographical Differences: Obesity rates range from under 25% in states like Colorado to over 40% in six states, showing wide regional disparities.

  3. Economic and Health Costs: Rising obesity drives $480 billion in extra medical costs and $1.2 trillion in productivity losses, partly due to expensive treatments like Wegovy.

HVBA Poll Question - Please share your insight

With over 2.5 million workplace violence incidents annually, costing businesses $250 billion, are you aware of affordable workplace violence insurance programs that protect employees, similar to voluntary accident benefits but with higher payouts?

Login or Subscribe to participate in polls.

Our last poll results are in!

27.49%

of Daily Industry Report readers who participated in our last polling question, when asked what they “think is the most important step to improve healthcare cybersecurity?“ responded with “implementing organization-wide cybersecurity training for all employees.

25.49% believe the most important step to improve health cybersecurity is “ensuring new technologies are built with a security-first approach,” while another 23.84% said “increasing investment in cybersecurity tools and infrastructure,” and 23.18% feel it to be “recruiting cybersecurity leaders with diverse, non-healthcare experience.”

Have a poll question you’d like to suggest? Let us know!

Buyers of digital health plan to up their investment next year, survey finds

By Emma Beavins - Healthcare purchasers are investing more in digital health technologies and are committed to growing the space, according to a survey from the Peterson Health Technology Institute (PHTI), an independent reviewer of digital health technologies. Read Full Article…. 

HVBA Article Summary

  1. Rising Digital Health Budgets: 75% of organizations have increased their digital health budgets in the last two years, focusing on cost savings, better outcomes, and improved access.

  2. Top Purchasing Criteria: A proven track record is the key factor for selecting digital health tools, with many targeting diabetes, mental health, and primary care.

  3. Short Contract Terms: Most digital health contracts last 1-2 years, limiting the time to demonstrate value, with reviews happening annually for most employers and payers.

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CVSHealth Eyes Breakup: A Reckoning for Corporate Health Care's Vertical Empire

By Wendell Potter - In a surprising turn of events, sources say that CVS Health is exploring the possibility of breaking up its business empire — a move that could unravel years of aggressive vertical integration, including its $70 billion acquisition of health insurer Aetna back in 2017. Read Full Article…

HVBA Article Summary

  1. Overexpansion and Inefficiencies: CVSHealth's rapid acquisitions have led to rising costs and operational complexity, causing inefficiencies and investor concerns.

  2. Regulatory and Financial Struggles: CVS faces FTC scrutiny over Caremark and financial setbacks, prompting leadership changes and talk of a potential breakup.

  3. Broader Industry Impact: CVS’s potential split highlights wider challenges in healthcare, signaling a possible shift away from mega-mergers as other companies face similar issues.

Major IV provider B. Braun ‘intact’ after Hurricane Milton

By Caroline Catherman - The US is struggling to address a yearslong IV supply shortage following two back-to-back hurricanes. Read Full Article… 

HVBA Article Summary

  1. B. Braun Operations Intact: B. Braun's Daytona Beach IV facility remained unaffected by Hurricane Milton and will resume operations as scheduled.

  2. Proactive Measures: B. Braun, with federal assistance, moved IV supplies to a secure location and continues working with federal agencies to ensure supply continuity.

  3. Nationwide IV Shortages: Following Hurricane Helene’s impact on Baxter's North Carolina site, hospitals are facing widespread IV fluid shortages, with 86% reporting supply issues.

CBO: Covering anti-obesity drugs could cost Medicare $35B by 2034

By Paige Minemyer - Allowing Medicare to cover anti-obesity medications would drive up federal spending by about $35 billion on net between 2026 and 2034, according to a new report from the Congressional Budget Office (CBO). Read Full Article…

HVBA Article Summary

  1. Rising Costs: CBO projects federal costs for anti-obesity medications will rise from $1.6 billion in 2026 to $7.1 billion by 2034, while savings will be modest, growing from $50 million to $1 billion.

  2. Limited Usage: Of the 12.5 million Medicare beneficiaries eligible for the drugs in 2026, only 2% (300,000) are expected to use them, increasing to 14% (1.6 million) by 2034.

  3. Cost vs. Savings: The government will spend $5,600 per user in 2026, dropping to $4,300 in 2034, but savings will start at $50 per user and grow to $650 by 2034.

Pet benefits: A solution to rising pet care costs and employee stress

By Michael Popke - Just as three-quarters of working parents report missing work to attend to the needs of their children, a nearly equal percentage of working pet owners are doing the same for their dogs and cats. Read Full Article… (Subscription required)

HVBA Article Summary

  1. Pet Care and Work Disruptions: Wagmo’s survey shows 75% of U.S. employees with pets have missed work due to pet issues, and 65% feel distracted when their pets are sick or injured, affecting productivity.

  2. Cost of Pet Care: 57% of pet owners spent over $1,000 on pet care last year, with high veterinary costs as a major challenge. Pet insurance and wellness plans are common, but only 24% have both.

  3. Pet Benefits in Employment: 65% of working pet parents consider pet-related benefits important in job decisions. Employers are increasingly offering these benefits to attract and retain talent.

Why GLP-1s might treat a plethora of conditions

By Paige Tweeter - Hundreds of clinical trials are researching how drugs like Ozempic and Mounjaro affect a plethora of conditions, Nature reported Sept. 25. Read Full Article…

HVBA Article Summary

  1. Expanding Uses of GLP-1 Drugs: GLP-1 medications, originally approved for diabetes and weight management, are being studied for conditions like anxiety, Alzheimer's, and cancer, with some promising trial results.

  2. How GLP-1 Works: These drugs regulate insulin, blood sugar, appetite, and digestion, making them relevant for treating multiple conditions, from diabetes to addiction, based on their biological actions.

  3. Inflammation and Brain Effects: GLP-1s reduce inflammation, potentially benefiting diseases like kidney disease and Alzheimer's, though their full impact on the brain is still being explored.