Executive Order Directs Federal Agencies to Improve Health Care Price Transparency
Recently, President Donald Trump issued an executive order (EO) directing federal agencies to issue new guidance to improve health care price transparency. This EO aims to promote a more competitive, innovative, affordable, and higher-quality health care system.
Health Plan Price Transparency
The Departments of Labor, Health and Human Services, and the Treasury (Departments) issued a final rule in November 2020 that imposed new transparency requirements on group health plans and health insurance issuers:
- Machine-readable files (MRFs): Effective July 1, 2022, health plans and issuers must disclose detailed pricing information in three MRFs on a public website.
- Self-service price comparison tool: Health plans and issuers must make an internet-based self-service price comparison tool available to participants, beneficiaries, and enrollees. For plan years beginning on or after Jan. 1, 2023, price comparison information was required for 500 items and services. For plan years beginning on or after Jan. 1, 2024, price comparison information must be available for all covered items and services.
The EO
The EO directs the departments to take the following actions within 90 days:
- Require the disclosure of actual prices of items and services, not estimates.
- Issue updated guidance or proposed regulations, ensuring pricing information is standardized and easily comparable.
- Issue guidance or proposed regulations updating enforcement policies designed to ensure compliance with the transparent reporting of complete, accurate, and meaningful data.
Although most employers rely on their issuers or third-party administrators to satisfy many transparency requirements, employers should still monitor this topic for additional guidance from federal agencies. Contact us for more resources.
Small Business Tips for Overcoming HR Distrust
HR performs several functions that are necessary for small businesses, including employee recruitment, onboarding, training, payroll and benefits, compliance, and employee relations. Despite the value that HR professionals provide to employees, many small businesses find it difficult to maintain these teams’ credibility among workers.
A report from Secure Data Recovery found that more than a third of U.S. workers working for small companies don’t trust their company’s HR due to factors such as bias, favoritism, and inconsistency.
A lack of confidence in HR can lead to distrust of leadership, a lack of transparency, poor workplace cultures, and potentially high employee turnover. Therefore, it’s crucial for small employers and their HR teams to understand the key reasons for this distrust and implement strategies to foster credibility among employees.
Reasons for HR Distrust in Small Businesses
Small businesses tend to face unique HR challenges due to limited resources and staffing constraints. Despite a smaller number of staff, small businesses still have burdensome compliance, benefits, and HR requirements. Many of these smaller businesses have minimal HR teams or an HR department of one.
With minimal resources, even well-intentioned HR functions can act in ways that lead to distrust among workers. Key factors that contribute to HR distrust within small businesses include the following:
- Poor communication
- Favoritism
- Disorganization
- Inconsistent policies
- Lack of empathy
- Failure to address employee concerns
- Lack of employee advocacy
Gaining Trust
By improving departmental practices and focusing on employee needs, small businesses’ HR teams can earn trust among workers and help create a positive workplace culture. The following strategies can build trust in HR:
- Invest in training your HR staff. Thorough and regular training and development equips HR teams with the skills and knowledge to support employees and address their concerns. For businesses with an HR department of one, this could mean upskilling or investing in that employee’s development so they can better serve the needs of employees.
- Practice transparency. Transparency entails open and honest communication about company policies, decisions, and changes. This practice can help build trust with HR, as it reduces uncertainty and keeps employees informed.
- Align HR with employee needs. It’s imperative that HR understands and addresses the diverse needs of the workforce. HR teams should listen and respond to employee feedback and concerns, or even conduct a survey. This alignment fosters trust, allowing employees to feel seen and heard.
- Advocate for employees. When HR stands up for workers’ rights and well-being, employees are more likely to view these teams as their allies, thus instilling confidence and trust in HR.
- Focus on employee development and career advancement. Investing in employees’ careers and skills can show that HR is dedicated to their growth and personal development. In turn, this can gain workers’ trust, as HR demonstrates that it values their futures and long-term success.
Conclusion
Although it may be challenging for small businesses, it’s crucial to create productive HR functions so these teams engender trust among employees. By implementing strategies to address the key factors that lead to HR distrust, employers can reduce turnover and improve employee satisfaction and engagement, leading to a healthy workplace culture.
If you have any questions about these new requirements, don't hesitate to contact us at assist@forsitebenefits.com for more information.
Check Out the New Case Study from Motion Connected
Forsite’s sister company, Motion Connected, has just released a case study showcasing how M2 Logistics successfully transformed its employee wellness strategy across multiple locations. By introducing engaging team-based challenges, leveraging real-time analytics, and prioritizing a culture-first mindset, M2 Logistics saw immediate boosts in employee camaraderie and measurable health improvements—all while mitigating rising healthcare costs.
Highlights from the case study include:
Competitive Step Challenges that unite employees in fun, goal-oriented activities
Data-Driven Insights are guiding M2 Logistics’ leadership to refine and optimize initiatives
Positive Employee Feedback with 95% reporting a meaningful impact on their daily health choices
Explore the full story here: Driving Engagement and Camaraderie with Motion Connected and discover how M2 Logistics leveraged Motion Connected’s technology and expertise to foster a lasting culture of well-being.
Federal: New Version of Form I-9 Released – Don't Panic!
On April 2, 2025, the U.S. Citizenship and Immigration Services (USCIS) released an updated Form I-9. However, employers can continue using the previous versions of the form.
The Updates
The new Form I-9 has the following changes:
- The term “noncitizen” was replaced with “alien”
- The term “gender” was replaced with “sex”
- A new edition date of 1/20/25
The Form I-9 Instructions also contain similar terminology updates and a revised Department of Homeland Security (DHS) Privacy Notice. These changes will also be reflected in E-Verify and E-Verify+ beginning April 3, 2025.
The Takeaway
Because use of the new Form I-9 is currently optional, employers don’t need to take any action at this time. The previous Form I-9 versions (both of which have an 8/1/23 edition date) are still valid through their respective expiration dates in 2026 and 2027.
Employers that use E-Verify and continue to use the 8/1/23 Form I-9 versions should note that there will be a difference in the language that refers to noncitizens. Specifically, if an employee selects on Form I-9 that they are “a noncitizen authorized to work,” the employer must select “an alien authorized to work” in E-Verify.
More Information
For more information, see the USCIS announcement and the updated Form I-9 and Instructions, or reach out to our team to learn more.
4 Employee Benefits Trends Shaping 2025
Employee benefits are transforming, and employers can get ahead of these changes as they strive to both manage costs and attract and retain top talent. This article explores key trends that will shape employee benefits in 2025.
1. New Administration’s Benefits Changes
Early into the current Trump administration, employers are waiting for signs of imminent changes to the health care system. In particular, analysts are monitoring changes to price transparency, potential cuts to Medicaid, and the future of Affordable Care Act subsidies passed through the Inflation Reduction Act.
2. Growing Popularity of GLP-1s
Driven by growing popularity among employees, glucagon-like peptide-1 (GLP-1) drugs are in high demand for weight loss. GLP-1 treatment typically costs an average of around $1,000 per individual each month and should be taken continuously. When considering covering weight loss drugs, many employers are concerned that they require a long-term commitment to be effective.
3. Rising Health Care Costs
Employers anticipate healthcare costs to increase at least 7% in 2025, according to industry experts. Beyond GLP-1 drugs, other specialty medications and treatments—like immunosuppressants, cell and gene therapies, biologics, and antivirals—are primed to contribute to health care spending for 2025. In addition, factors such as aging populations, the proliferation of chronic conditions, and a labor shortage in the health care industry are expected to drive up costs.
4. Family-building Benefits
More employers are offering family-building benefits because they have proven highly valued among younger employees. Among other benefits, popular coverage includes in vitro fertilization (IVF), surrogacy benefits, child care subsidies, and paid parental and adoption leave.
Summary
Employers should continue to monitor trends shaping the landscape of employee benefits through 2025. Contact us today for more benefits resources. Reach out today to learn more.
Report: Wages and Benefits Increase by 0.9% in Q4 2024
In its recent Economic Cost Index (ECI) report, the U.S. Bureau of Labor Statistics noted that compensation costs for civilian workers increased by 0.9% in the fourth quarter of 2024, consistent with the rise observed in the previous quarter. Over the 12-month period ending in December 2024, compensation costs grew by 3.8%, a slight deceleration from the 4.2% increase recorded in December 2023. Compensation for state and local government workers rose 4.7%, unchanged from the previous quarter.
Wages and salaries, which constitute the majority of compensation costs, also saw a 0.9% increase in the fourth quarter. Annually, wages and salaries rose by 3.8% through December 2024, down from a 4.3% increase in the previous year. Benefit costs for workers went up by 0.8% in the fourth quarter and experienced a 3.6% rise over the year, compared to a 3.8% increase in December 2023.
“A balanced labor market along with wage growth compression efforts by employers led to a moderate 0.9% gain in the Employment Cost Index (ECI) in Q4.”
- Gregory Daco, chief economist at EY-Parthenon
These figures align with economists’ expectations, indicating a steady but moderate growth in labor costs. The ECI, a key indicator of labor market health and a predictor of core inflation, reflects these trends.
The ECI measures changes in the cost of employees’ wages and benefits to employers over time. The Federal Reserve (Fed) closely watches the ECI and the trajectory of wage growth as it considers interest rate changes.
Employer Takeaway
The consistent rise in compensation costs underscores the ongoing challenges in managing labor expenses.
Employers should expect compensation increases to remain competitive in 2025. Small businesses should continue to monitor labor and compensation trends in 2025 to inform their workplace strategies.
Contact us today for more resources.