Daily Insurance Report - December 15

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

Jake Velie, CPT
Vice Chairman, President & COO
Voluntary Benefits Association® (VBA)
Editor-In-Chief
Daily Insurance Report (DIR)

Robert S. Shestack, CCSS, CVBS, CFF
Chairman & CEO
Voluntary Benefits Association® (VBA)

VBA Poll Question - Please share your insights

How prepared are you for the implementation of the Consolidated Appropriations Act and its requirements beginning December 31st, 2023

Login or Subscribe to participate in polls.

Our last poll results are in!

45.83%

of Daily Insurance Report readers who responded to our last poll believe the healthcare benefits their company offers to employees are somewhat affordable and sustainable.

21.67% believe the healthcare benefits their company offers to employees are very affordable and sustainable, while 16.67% remain neutral, 8.33% believe the healthcare benefits their company offers are somewhat unaffordable and unsustainable, with the remaining 7.5% stating their company healthcare benefits are very unaffordable and unsustainable.

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

Words as medicine: Creating a healthier tomorrow through literacy

By Terri Swanson - The U.S. Department of Health and Human Services defines The U.S. Department of Health and Human Services defines personal health literacy as “the degree to which individuals have the capacity to obtain, process and understand basic health information services needed to make appropriate health decisions.” Read Full Article…

VBA Article Summary

  1. Challenges in Understanding Health Information: Despite the abundance of available information, many people struggle with health literacy, finding it difficult to understand complex medical terms and effectively use health-related technology. This is not limited to the digital realm, as a significant percentage of adults, especially those over 60, have trouble with printed health materials and forms. This lack of understanding can have serious consequences, leading to increased emergency room visits, hospitalizations, and even higher death rates.

  2. The Role of Education and Collaboration in Improving Health Literacy: Effective health literacy among older adults can be achieved through education and the right tools. Brokers and benefits consultants play a crucial role in this process by providing clear, simple written materials and organizing educational workshops and seminars. This collaboration among health plan organizations, brokers, and benefits consultants is vital to ensure clients understand their health benefits and can manage their conditions effectively.

  3. Organizational Responsibility and Resources for Health Literacy: Health literacy is a shared responsibility, requiring efforts from various organizations to improve their communication and resources. Organizational health literacy involves creating user-friendly guides, videos, and digital tools to help individuals make informed health decisions. Resources like Health Literacy Online and the Institute for Healthcare Improvement offer guidance for organizations and healthcare providers to enhance their communication strategies, contributing to a collaborative effort across the health ecosystem to promote and foster health literacy.

This Researcher Warned of Unnecessary, Risky Vascular Procedures. She Was Called a “Nazi” and Accused of “Fratricide.”

By Annie Waldman - Vascular surgeon Dr. Caitlin Hicks recalls the first time, about a decade ago, that a patient came to her with a lower leg mottled with purple and starting to decay. She searched for a pulse in the damaged limb, but blood had stopped flowing into it. Read Full Article…

VBA Article Summary

  1. Concerns Over Atherectomy Procedures: Dr. Hicks, an associate professor of surgery at Johns Hopkins University, observed that many patients undergoing atherectomy procedures for clearing clogged arteries had mild or non-existent symptoms. This led to concerns about the overuse of these invasive procedures, which carry risks like infection or accidental injury from surgical tools. Her research suggested that many of these procedures might not have been necessary, especially for patients with milder symptoms who could be treated with less invasive methods.

  2. Research and Pushback: Hicks and her team conducted groundbreaking research, revealing potential overuse of atherectomies by some doctors. They found that less invasive treatments were often more suitable for patients with mild symptoms. Despite disclosing their findings to relevant authorities and societies, they faced significant opposition from a portion of the medical community. This resistance was evident in professional conferences and discussions, where some doctors defended their freedom to perform these procedures.

  3. Systemic Challenges and Financial Incentives: The article highlights the challenges in effecting change in medical practices, particularly when financial incentives are involved. Despite the research and attempts to regulate, atherectomies remain widely performed and profitable, with a significant increase in their number and associated payments to doctors. This situation is compounded by a lack of adequate regulatory action and the complex dynamics within the medical community, where some practitioners view the research as an attack on their practices.

Where are employee benefits headed in 2024?

By Dan Thompson - Employee benefits have evolved significantly in recent years, moving beyond basic offerings like health insurance and paid time off to more tailored packages catering to the modern workforce’s needs. This shift resulted from various factors, including changing demographics, economic evolution and an increasing emphasis on employee wellbeing. Read Full Article…

VBA Article Summary

  1. Emergence of Diverse Benefits: The industry has seen significant changes in the types of benefits offered by employers. Mental health support has become a crucial component, reflecting a broader societal recognition of its importance. Other growing areas include financial counseling, 401(k) planning, budgeting, and pet insurance plans. These developments highlight a shift towards more comprehensive and diverse benefits packages that cater to various aspects of an employee's life, beyond just traditional health insurance.

  2. Demographic Influence on Benefit Preferences: There's a noticeable difference in benefit preferences across generations. Older workers (aged 48-64) primarily focus on health insurance and supplemental benefits that enhance their medical care and retirement plans. In contrast, younger employees are drawn towards benefits that offer flexibility and customization, even if it means a higher cost or slightly reduced quality of care. This trend underscores the need for employers to understand and adapt to the changing expectations and priorities of their workforce.

  3. Future Outlook: Personalization and Technology in Healthcare Benefits: The healthcare and benefits industry is evolving towards a more personalized and data-driven approach. Employers are increasingly offering tailored health plans to meet the unique needs of their employees. The focus is expanding to include mental health, genetic testing, and personalized nutrition counseling. Predictive analytics and AI are set to play a significant role in advancing preventative care and improving overall population health. Despite the challenges posed by technological advancements, there's a concerted effort among employers, insurers, and healthcare providers to use data and AI to enhance healthcare delivery, improve transparency, and support employees in making informed healthcare decisions.

HHS releases AI transparency rule

By Naomi Diaz - The HHS has taken the initial step in regulating emerging AI tools and algorithms within the healthcare sector. On Dec. 13, the agency released the "Health Data, Technology, and Interoperability: Certification Program Updates, Algorithm Transparency, and Information Sharing" rule. This rule is the agency's attempt at increasing transparency regarding the use of artificial intelligence in clinical settings, according to a press release from the HHS. Read Full Article…

VBA Article Summary

  1. Transparency and Accountability in Health IT: The new rule mandates increased transparency for certified health IT and software developers, emphasizing the disclosure of information related to AI and predictive algorithms used in healthcare. This includes tools for analyzing medical imaging, generating clinical notes, and alerting clinicians to patient risks. The aim is to enhance the understanding and trustworthiness of these technologies.

  2. Comprehensive Evaluation and Oversight: Developers are required to provide detailed information about their software's development, functionality, and intended use in healthcare decision-making. This includes disclosing funding sources and offering guidance on cautious use. Additionally, developers must share insights into the AI's training data, performance metrics, and ongoing monitoring procedures, ensuring the software remains effective and safe over time.

  3. Regulatory Compliance and Ethical Considerations: By the end of 2024, healthcare professionals using decision support software certified by the HHS will need to comply with these regulations. The rule responds to calls from hospital and health system executives for a structured framework to guide the ethical use and advancement of AI in healthcare, focusing on responsible, evidence-based, and bias-free technologies that promote equity in healthcare.

Google is rolling out new AI models for health care. Here’s how doctors are using them

By Ashley Capoot - Google on Wednesday announced MedLM, a suite of new health-care-specific artificial intelligence models designed to help clinicians and researchers carry out complex studies, summarize doctor-patient interactions and more. Read Full Article…

VBA Article Summary

  1. Google's AI Expansion in Healthcare: Google is actively expanding its presence in the healthcare sector by introducing AI tools, notably the MedLM suite, which includes a large and medium-sized AI model built on Med-PaLM 2. This suite, available to eligible Google Cloud customers in the U.S., offers various price points based on usage. Google plans to further enhance MedLM with healthcare-specific versions of its newest AI model, Gemini.

  2. Diverse Applications and Client Feedback: Various organizations are testing Google's AI technology, including HCA Healthcare, which uses MedLM to automate documentation in emergency rooms. This AI suite helps in tasks like transcribing doctor-patient interactions and summarizing critical information for nurse handoffs. While the initial response has been positive, challenges such as AI inaccuracies and limitations in data processing are being addressed in collaboration with Google.

  3. Future Developments and Industry Impact: Google's AI models, particularly Med-PaLM 2 and the upcoming Gemini, are being tested and evaluated for broader deployment in healthcare settings. These AI solutions aim to improve efficiency and decision-making in healthcare, aiding in tasks ranging from drug discovery to patient care management. Despite the hype, the technology is still evolving, with Google and its partners cautiously implementing these AI models to ensure patient safety and operational effectiveness.

Join our LinkedIn Community!

Upnext: 4 key takeaways for workforce solutions in 2024

By G Hatfield - One of the largest pain points for healthcare executives is the workforce, and with healthcare comprising 10% of the U.S. workforce, there is no shortage of challenges. Read Full Article…

VBA Article Summary

  1. Need for Better Strategy: Healthcare executives highlighted the need for improved strategic planning, particularly in the face of high staff turnover and the challenge of implementing new technologies. Traditional five-year strategies are becoming obsolete due to rapid disruptions in the healthcare sector, including competition from companies like Amazon and Walmart.

  2. Addressing Turnover: The healthcare industry is grappling with unprecedented turnover rates, attributed to factors like burnout, poor working conditions, and a shortage of physical workers. This issue is compounded by an aging workforce and the impending retirement of older generations, creating staffing challenges in hospitals and a national nursing shortage.

  3. Streamlining Decision-Making: A significant challenge identified is the disconnect in priorities and slow pace of change within healthcare organizations. Executives discussed the importance of involving Chief Nursing Officers (CNOs) in strategic decisions to ensure that nurses have a voice and representation in the decision-making process. This approach aims to streamline organizational progress and focus on critical challenges more effectively.

Additionally, the article mentions a proactive approach for 2024, emphasizing strategic workforce planning, professional development investment, and fostering a supportive work environment to address these challenges.

Healthcare spending hit $4.5t in 2022, up 4.1%

By John Commins - The nation's healthcare expenditures hit $4.5 trillion in 2022, increasing by 4.1% to $13,493 per person, federal actuaries reported Wednesday. Read Full Article…

VBA Article Summary

  1. Trends in Healthcare Spending and Economic Growth: The report from the Office of the Actuary at the Centers for Medicare and Medicaid Services, featured in Health Affairs, highlights a 4.1% increase in healthcare spending in 2022, marking a slowdown from the 10.6% spike in 2020 during the pandemic's peak. This growth rate, however, surpassed the 3.2% increase in 2021 and was significantly lower than the 9.1% growth in the gross domestic product for 2022. The share of healthcare spending in the GDP also decreased to 17.3% in 2022 from its historical high of 19.5% in 2020.

  2. Shifts in Spending Across Healthcare Categories: The analysis reveals varied growth rates across different healthcare sectors. While Medicaid spending grew by 9.6% in 2022, personal healthcare spending saw a deceleration, particularly in hospital care, dental services, and physician and clinical services. Conversely, non-personal healthcare spending surged, primarily due to changes in the net cost of insurance. Additionally, the uninsured population decreased for the third consecutive year, with significant increases in private health insurance, Medicaid, and marketplace enrollment.

  3. Comparative Analysis of Major Healthcare Expenditure Sectors: The report provides a detailed breakdown of spending growth in key sectors:

    Medicare: Saw a 5.9% growth in 2022, reaching $944.3 billion.

    Medicaid: Increased by 9.6%, amounting to $805.7 billion.

    Private Health Insurance: Grew by 5.9%, totaling $1.3 trillion.

    Out-of-Pocket Spending: Rose by 6.6%, reaching $471.4 billion.

    Hospital Spending: Increased by 2.2%, amounting to $1.4 trillion.

    Physician and Clinical Services: Grew by 2.7%, reaching $884.9 billion.

    Retail Prescription Drug Spending: Experienced an 8.4% growth, totaling $405.9 billion.

HHS pushes forward with new requirements for AI transparency, interoperability

By Heather Landi - The federal government's healthcare tech arm finalized a sweeping regulation that requires new technology upgrades while also advancing interoperability and transparency in predictive decision support tools. Read Full Article…

VBA Article Summary

  1. Implementation of the 21st Century Cures Act and Health IT Certification Updates: The Health Data, Technology, and Interoperability (HTI-1) regulation, introduced by the Office of the National Coordinator for Health Information Technology (ONC), is a pioneering step in establishing nationwide requirements for AI and algorithm transparency in health IT. This regulation is part of the 21st Century Cures Act and includes updates to the ONC Health IT Certification Program. It places a strong emphasis on health IT certification and combating information blocking, with the goal of enhancing interoperability and reliability in healthcare systems.

  2. Focus on AI Transparency and Risk Management: The HTI-1 rule marks a significant shift in ONC's approach to artificial intelligence (AI) and machine learning (ML) technologies. It aims to increase transparency and trustworthiness of predictive algorithms in healthcare, particularly in clinical decision support (CDS) and decision support interventions (DSIs). These provisions will have a considerable impact on the development, deployment, and use of AI/ML tools in healthcare, aiming to reflect the technical evolution in the industry and address challenges posed by AI and ML technologies.

  3. Compliance Timelines and Health Equity Concerns: The regulation has set a compliance deadline by the end of 2024 for health IT developers to meet new transparency requirements and ongoing certification and maintenance requirements. Additionally, the rule focuses on preventing health disparities and ensuring unbiased decision-making in clinical support tools. It introduces new vendor reporting requirements to enhance patient safety and includes provisions to advance the United States Core Data for Interoperability (USCDI) Version 3 as the new standard in the ONC Health IT certification program by January 1, 2026. The regulation also revises information blocking definitions and exceptions to promote secure and efficient information exchange, alongside new interoperability-focused reporting metrics.

10 Keys to Restoring Trust in Healthcare

By Nick Hut - The issue of restoring consumer trust in the U.S. healthcare system encompasses a wide range of concerns. Factors in the perceived loss of trust include anxiety and confusion over costs, entrenched inequity, a glut of misinformation about vaccines and other treatments, and data and privacy breaches. Read Full Article…

VBA Article Summary

  1. Trust Deficit and Its Impact: The HFMA's 16th annual Thought Leadership Retreat focused on the decline in trust within the healthcare system, linking it to worsening population health outcomes. Industry leaders discussed how the increasing complexity, cost, and perceived lack of humanity in healthcare contribute to this trust deficit. The importance of understanding and addressing the root causes of this declining trust, both among consumers and frontline healthcare workers, was emphasized.

  2. Strategies for Building Trust: The retreat highlighted several strategies to rebuild trust in the healthcare system. These include emphasizing affordability of care, improving transparency in healthcare pricing and operations, and increasing the value delivered to patients through value-based care models. Additionally, enhancing equity in healthcare, by addressing disparities in access and treatment among different demographic groups, was identified as crucial for rebuilding trust.

  3. Actionable Steps and Leadership Role: The discussions concluded with a call for immediate action rather than continued analysis of the problems. This includes taking steps to reduce systemic friction, like streamlining processes such as prior authorization, and leveraging digital technologies to improve patient engagement and care efficiency. Leadership was identified as key in driving these changes, with a focus on courageous and conscious decision-making to implement meaningful reforms in the healthcare system.

Words as medicine: Creating a healthier tomorrow through literacy

By Terri Swanson - The U.S. Department of Health and Human Services defines personal health literacy as “the degree to which individuals have the capacity to obtain, process and understand basic health information services needed to make appropriate health decisions.” Read Full Article…

VBA Article Summary

  1. Challenges in Health Literacy: Despite the abundance of information, a significant number of adults struggle to understand health information due to complex medical terms and low health literacy. This is exacerbated by a lack of digital skills in using health-related technology. The issue is prevalent across various age groups, with a notable difficulty in older adults understanding print materials, forms, and charts. Health literacy is not only a matter of technological access but also involves the ability to comprehend and effectively use health-related information.

  2. The Role of Literacy in Total Health: Low health literacy is linked to poorer health outcomes, including medication errors, increased hospital visits, and higher mortality rates. This issue disproportionately affects certain communities, contributing to health disparities. Health literacy is vital, especially for older adults, as it empowers them to advocate for their well-being, understand preventive measures, and seek appropriate care. Education and the provision of the right tools are key to improving health literacy and reducing disparities.

  3. Strategies for Enhancing Health Literacy: The article emphasizes the crucial role of brokers and benefits consultants in improving health literacy among clients, particularly older adults. Simplifying health plan guides and providing educational materials in easy-to-understand language can significantly assist individuals in managing their health. Additionally, hosting workshops and seminars can educate people about their healthcare plans and resources. The responsibility extends to organizations as well, which should focus on improving their websites and materials for better health literacy. Collaborative efforts across the health ecosystem, including health plan organizations, providers, and consultants, are essential for fostering health literacy.