Daily Industry Report - October 9

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)

What’s New and What To Watch For in the Upcoming ACA Open Enrollment Period

By Julie Appleby - It’s that time of year again: In most states, the Affordable Care Act’s annual open enrollment season for health plans begins Nov. 1 and lasts through Jan. 15. Read Full Article…

HVBA Article Summary

  1. Automatic Reenrollment and Important Updates: Current enrollees in health plans who do not update their information or choose a different plan will be automatically reenrolled in their existing plan. If their current plan is unavailable, they will be placed into a comparable plan. It’s crucial for consumers to actively review their options each enrollment period, as there may be significant changes in coverage and costs.

  2. Beware of Scams and Misleading Information: Consumers should be cautious of advertising scams and unverified websites promising unrealistic benefits, such as large cash rewards for enrollment. These scams often involve unscrupulous brokers who switch plans without consent. It is advisable to start the enrollment process on the official federal marketplace website, healthcare.gov, to avoid misleading offers and ensure eligibility for ACA subsidies.

  3. Changes in Coverage and Premiums: While some insurers may lower premiums for 2025, many are projected to increase rates, with an estimated median rise of 7%. Additionally, individuals previously not eligible, such as “Dreamers,” can now enroll in ACA coverage. Consumers should thoroughly compare plans, considering network providers, premium costs, and coverage details, as the sign-up process may take longer due to new regulations aimed at protecting consumer rights.

HVBA Poll Question - Please share your insight

What do you think is the most important step to improve healthcare cybersecurity?

Login or Subscribe to participate in polls.

Our last poll results are in!

60.81%

of Daily Industry Report readers who responded to our last polling question, when asked what they believe the most significant impact would be if travel were offered as a benefit with an optional employer contribution/match, “ stated, “use as a recruiting tool when competing for top talent.”

22.14% responded the most significant impact of travel benefits would be to “Offer employees rewards & recognition,” and 11.71% believe it would “encourage vacation time to increase retention & engagement”. In comparison, 5.34% believed the most significant impact would be to “mitigate PTO financial Risk - reduce financial risk on the books by dropping PTO into 401(play) travel benefit accounts.”

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

CVS lays off 400+ at Aetna headquarters

By Rylee Wilson - CVS Health will lay off 416 employees at Aetna's headquarters in Hartford, Conn. In a WARN notice filed Oct. 6, the company said 93 employees work at the facility in Hartford. The other employees work remotely in several states and report to the facility. Read Full Article…

HVBA Article Summary

  1. Layoff Announcement and Scope: CVS Health plans to lay off 2,900 employees, primarily in corporate roles, effective December 7. This reduction represents less than 1% of the company's workforce and is part of a broader initiative aimed at cutting $2 billion in costs.

  2. Reasons Behind the Cuts: The layoffs come amidst a challenging year for CVS, characterized by a 24% decline in share prices and multiple cuts to earnings guidance, largely due to rising costs in its Aetna Medicare Advantage business. The company anticipates potential losses of up to 10% in MA membership by 2025.

  3. Future Considerations and Support for Employees: CVS executives are exploring the possibility of splitting the company into separate retail and insurance divisions. Affected employees, including several high-level positions at Aetna, will receive severance pay and benefits, as the company remains committed to its mission of providing quality care.

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Wealthy nations might be reaching a life expectancy limit, study suggests — at least for now

By Jonathan Wosen - Over the past 150 years, humanity has unleashed unimaginable energy by splitting atoms and developed machines that allow us to soar through the skies. But arguably, our species’ most profound change has been far more basic: People generally live a lot longer than they used to. Read Full Article…

HVBA Article Summary

  1. Slowing Life Expectancy Gains: A recent study published in Nature Aging reveals that life expectancy improvements have significantly slowed in wealthier nations, suggesting a potential limit to advancements from modern medicine. The study analyzed data from 1990 to 2019 across various countries, finding that only a small percentage of newborns are expected to reach 100 years old, contrasting sharply with earlier predictions.

  2. Need for Fundamental Changes: The authors of the study argue that substantial increases in life expectancy will likely require breakthroughs in slowing the aging process itself, as merely treating individual diseases is insufficient. The study's findings challenge optimistic views in the longevity field, emphasizing that significant mortality reductions are necessary to achieve further increases in lifespan.

  3. Focus on Healthspan: Researchers, including study co-author Jay Olshansky, stress the importance of not only extending life expectancy but also improving healthspan—the period of life spent in good health. The team plans to investigate how advancements in medicine have extended life and to identify actionable steps individuals can take to enhance their health and quality of life.

HSAs & open enrollment: 3 ways to demonstrate value 

By Itamar Romanini - Health savings accounts (HSAs) support employee wellness and offer important tax breaks. Yet many employees miss out on saving hundreds or even thousands of dollars each year for three reasons that you can easily resolve during open enrollment. Read Full Article…  (Subscription required)

HVBA Article Summary

  1. Understanding HSA Accounts: Employees often lack a clear understanding of Health Savings Accounts (HSAs), including their purpose, benefits, and how to utilize them effectively. This knowledge gap can hinder participation and optimal use during open enrollment.

  2. Cash Flow Concerns: Many employees may feel that they do not have sufficient cash flow to fund their HSAs. Educating them about the possibility of starting with minimal contributions can alleviate this concern and encourage participation.

  3. Effective Communication Strategies: Benefits advisors and HR professionals can enhance HSA participation by simplifying information, making it engaging and personal, and encouraging small initial contributions. Highlighting tax advantages and available resources can empower employees to make informed decisions about their healthcare savings.

How much is health spending expected to grow?

By Matthew McGough, Aubrey Winger, Nisha Kurani, and Cynthia Cox - Each year, actuaries from the Centers for Medicare and Medicaid Services (CMS) project future spending on health. In 2024, per capita health spending growth is estimated to have slowed to 4.5%. Growth is expected to slow further in 2025 and 2026 to 4.2% and 4.3%, respectively. Read Full Article… 

HVBA Article Summary

  1. Moderating Growth in Health Spending: From 2027 to 2032, per capita health spending growth is projected to average 5.0% annually, with national health spending expected to outpace GDP growth, driven partly by rising medical prices. However, the implementation of the Inflation Reduction Act (IRA) in 2026 is anticipated to exert downward pressure on spending growth, particularly in Medicare.

  2. Prescription Drug Spending Trends: Starting in 2026, per capita retail prescription drug spending is projected to grow at an average rate of 5.4% through 2032, influenced by negotiated drug prices under the IRA. Despite this, significant uncertainty remains due to the potential introduction of new high-cost drugs, particularly for conditions like diabetes and cancer.

  3. Out-of-Pocket Spending Dynamics: Per capita out-of-pocket spending growth is expected to decrease to 3.5% from 2025 to 2032, aided by changes in the Medicare drug benefits, including the elimination of certain costs and the introduction of a $2,000 spending cap for beneficiaries. However, overall out-of-pocket expenses for hospital, physician, and prescription services are projected to continue rising, reaching $152 and $298 per capita by 2032 for hospital and physician services, respectively.

Tailoring workplace benefits for a multigenerational workforce

By Cheryl Swinkow - As the global workforce becomes increasingly diverse, traditional cookie-cutter benefits plans are becoming a thing of the past. Companies are seeking innovative solutions to attract and retain top talent, leading to a heightened reliance on human resource consultants and insurance professionals. Read Full Article…

HVBA Article Summary

  1. Diverse Generational Needs: A multi-generational workforce, including baby boomers, Generation X, millennials, and Generation Z, requires customized benefits packages that address the distinct values and priorities of each group. Insurance professionals are essential in crafting these tailored solutions to enhance employee engagement and retention.

  2. Balancing Flexibility and Stability: Successful benefits strategies must strike a balance between flexibility for younger employees and stability for older generations. This involves offering a core benefits package complemented by flexible options, such as wellness programs and remote work opportunities, which meet the evolving needs of the workforce.

  3. Data-Driven Decision Making: Utilizing employee engagement surveys allows organizations to understand their workforce's preferences better. Consultants can help analyze this data to refine benefits offerings, ensuring alignment with employee desires and ultimately leading to increased satisfaction, loyalty, and productivity.

Gen reveals 24% rise in ransomware attacks on consumers

By Rob Volansky - [In past weeks], Avast, a security and privacy brand under Gen, published insights on the growing threat of ransomware attacks on individuals. Read Full Article…

HVBA Article Summary

  1. Ransomware Surge: The report highlights a 24% increase in ransomware attacks targeting consumers, with India experiencing a staggering 379% rise. Other countries, including the United States, Canada, and the United Kingdom, saw a 100% increase, indicating that ransomware is increasingly affecting individual consumers, not just businesses.

  2. Sophisticated Scams Leveraging AI: Cybercriminals are using generative AI to enhance their scam tactics, making schemes more convincing and tailored to consumer interests. This includes the use of deepfakes for fraudulent cryptocurrency promotions and AI-generated voice communications in part-time job scams, increasing the complexity of threats faced by individuals.

  3. Emerging Threats and Identity Theft: The report outlines the resurgence of antivirus scams, where attackers use deceptive pop-up alerts to trick users into purchasing fake software. Additionally, digital identity theft threats are on the rise, with cybercriminals employing InfoStealers and Mobile Bankers to extract personal information from devices, particularly targeting financial platform users.