Enhanced Healthcare Price Transparency

On February 25, 2025, President Trump signed an executive order aimed at bolstering healthcare price transparency. This directive mandates that federal agencies enforce a 2019 order requiring hospitals and insurers to disclose actual healthcare costs. The Departments of Treasury, Labor, and Health and Human Services have 90 days to establish a framework ensuring compliance. Hospitals must display pricing for 300 services and provide comprehensive rate lists, while health plans are required to post their negotiated rates and out-of-network payments.

2025 RxDC Reporting Deadline – What Employers Need to Know

The RxDC report, required by the No Surprises Act (NSA), collects data on prescription drug spending, healthcare services, and premiums paid by both employers and members. Employers must submit this report annually by June 1 for the previous calendar year. The data helps federal agencies monitor trends in healthcare spending and informs potential cost-control strategies.

Key Updates for Reporting:

Employer Action Items:

The Play-or-Pay Penalty and Counting Employees under the ACA

Since 2015, the Affordable Care Act (ACA) has required applicable large employers (ALEs) to offer their full-time employees health coverage or pay one of two shared responsibility penalties (ESRP or “play-or-pay”). An employer is an ALE if it employs 50 or more full-time or full-time equivalent employees. Final IRS regulations provide guidance to help employers determine if they are ALEs and what they must do to avoid penalties.

Download this comprehensive guide to explore:

Medicare Drug Pricing

The U.S. Department of Health and Human Services (HHS) has announced the selection of 15 additional prescription drugs that will be subject to price negotiations under Medicare Part D. This marks the second cycle of negotiations following the first round initiated last August, which included 10 high-cost drugs.

Manufactures of these selected drugs had until February 28, 2025, to confirm their participation in negotiations. The negotiation process will extend through 2025, with new pricing expected to take effect in 2026. These changes stem from provisions under the Inflation Reduction Act (IRA), which grants Medicare the authority to negotiate drug prices for the first time in its history.

The newly selected medications include treatments for diabetes, cancer, respiratory conditions, mental health disorders, and gastrointestinal diseases. The list includes:

According to HHS, between November 2023 and October 2024, approximately 5.3 million Medicare Part D enrollees used these drugs. The negotiation process aims to reduce out-of-pocket costs for Medicare beneficiaries, many of whom rely on these medications for chronic and life-threatening conditions.

Employers who provide retiree benefits or supplement Medicare coverage for employees should stay informed about these negotiations and their impact on prescription drug costs. Potential cost savings for Medicare enrollees could influence plan design decisions, prescription coverage tiers, and formulary updates.

Artificial Intelligence in the Workplace: A Compliance Checklist

As artificial intelligence transforms workplaces, organizations must balance innovation with responsible implementation. This guide provides HR professional and business leaders with a checklist for ethical AI adoption, coverage pre-implementation planning, ongoing management, and compliance considerations.

Pre-Implementation Considerations

Post-Implementation Best Practices

The Future of Employee Wellness: 2025 Trends to Watch

The days of compartmentalizing physical, mental, financial, and emotional well-being are over. In 2025, organizations are embracing a holistic approach to employee wellness, recognizing that comprehensive support systems are essential to meeting workforce needs and expectations.

While many companies have expanded mental health resources in recent years, there is now a growing focus on financial wellness, alongside efforts to combat burnout, foster social connections, and personalize wellness initiatives using technology.

Let’s explore four key employee wellness trends shaping the workplace in 2025.

1. Addressing Employee Burnout

Employee burnout remains a major concern. A recent report by talent advisory firm DHR Global found that 82% of employees experiencing burnout, with top contributors being long hours (58%), overwhelming workloads (35%), and work-life balance struggles (34%).

To combat this, organizations are prioritizing flexible work arrangements, mental health days, realistic workload expectations, and structured downtime. Employers are also investing in Employee Assistance Programs (EAPs), stress management workshops, and digital mental health platforms. Additionally, initiatives aimed at reducing stigma, such as mental health literacy training help create workplace cultures where employees feel comfortable seeking support.

2. Prioritizing Financial Wellness

Financial stress is another growing concern, with over 60% of Americans living paycheck to paycheck. Inflation, rising debt, and increasing medical costs continue to strain household budgets, making financial wellness support a critical offering in 2025.

To address this, organizations are exploring financial wellness resources, such as:

• Emergency savings programs
• Retirement savings support
• Financial literacy workshops
• One-on-one financial counseling

These benefits not only reduce employee stress but also serve as valuable retention tools, as workers increasingly expect employers to provide financial wellness resources.

3. Strengthening Employee Engagement and Social Connections

Employee engagement in the U.S. hit an 11-year low in 2024, according to Gallup, with satisfaction levels at record lows and job-seeking activity at its highest since 2015. Factors such as organizational restructuring, heavier workloads, and budget cuts have left many employees feeling disengaged and disconnected.

A new trend, coined “the Great Detachment,” describes employees who remain in their jobs but feel little connection to their work. To counteract this, organizations are focusing on rebuilding commitment and engagement through:

• Clearer organizational priorities
• Purpose-driven work initiatives
• Stronger team connections

Supervisors can play a key role by helping employees see the meaning and impact of their work, reinforcing their sense of purpose and motivation.

4. Leveraging AI and Data to Personalize Wellness Programs

Technology is playing a bigger role in workplace wellness, with AI, wearable tech, and data analytics enhancing personalization. Companies are using digital health platforms and real-time monitoring tools to provide tailored support, including:

• Personalized wellness plans
• 24/7 access to health resources
• Predictive analytics for stress and burnout detection

AI-powered insights allow organizations to customize wellness offerings based on employee health trends, stress levels, and work habits, ensuring that wellness initiatives are both effective and relevant.

Employee wellness strategies in 2025 are evolving to address the interconnected nature of mental, financial, emotional, and physical well-being. Organizations looking to stay competitive and support their workforce effectively should evaluate their current wellness programs and consider enhancements based on employee feedback.

For guidance on developing or improving workplace wellness programs, contact us today.

Question of the Month

Q: Can a plan have an embedded deductible on an HDHP/HSA and still be compliant with IRS regulations?

A: To be eligible to contribute to an HSA, an employee must be covered only by a high deductible health plan (HDHP). An HDHP is a plan with a minimum deductible for employee-only coverage of $1,650 and a deductible of $3,300 for family coverage in 2025.

With family coverage that uses an embedded deductible, the deductible for any family member cannot be lower than $3,300. This makes little sense with an HDHP that uses the lowest possible deductible, because the family deductible will be the same as the embedded individual deductible. It makes more sense for an HDHP that uses a higher deductible, like $6,000 for family coverage. There, you could have an embedded individual deductible of $3,300. In this case, the HDHP could pay out on claims of one family member over $3,300 before the family deductible of $6,000 is satisfied. But this only makes sense when the family deductible of the HDHP is set at something above the minimum $3,300.

Answers to the Question of the Month are provided by Kutak Rock LLP. Kutak Rock provides general compliance guidance through the UBA Compliance Help Desk, which does not constitute legal advice or create an attorney-client relationship. Please consult your legal advisor for specific legal advice.