Healthcare Reality Check

Welcome to Healthcare Reality Check, a Nomi Health newsletter where we shine light on healthcare issues, innovations, resources, and solutions.?

The soon to be $5 trillion+ healthcare industry holds this nation hostage. We deserve a system that works for you and the people you love.

Walgreens settles lawsuit for $100 million

Walgreens agreed to a $100 million dollar settlement last week . The lawsuit accuses Walgreens of overcharging insured, Medicare, and Medicaid customers for prescription medications.?

Walgreens admits no liability.??

Bottom line: It feels hard to win as an individual in the U.S. healthcare system. Forego insurance and risk devastating healthcare bills. Pay for insurance and be punished by higher price tags on care.?

The problem of healthcare cost inflation: (when) will it stabilize?

Dr. Shivaram Rajgopal, Kester and Brynes Professor at Columbia Business School, and his students investigate recent claims that healthcare cost inflation will soon level out to 4%.??

Many companies like Verizon and Johnson & Johnson offer health insurance to retired employees and must project future healthcare costs for their balance sheets.???

Unfortunately, their 4% increase projections have been met by real, much higher numbers, and they’ve had to push the 4% projection out into the future.?

Conclusion: Outlook for inflation rates not so good.??

Bottom line: We applaud companies who are committed to taking care of their people. If inflation continues to increase at current rates, those costs will become prohibitive sooner rather than later. It’s time to investigate new solutions.

Healthcare data wars

Owens & Minor are a self-funded employer who hired Anthem in 2017 to oversee the administration of their health plan and its assets.??

In 2021, Owens & Minor asked Anthem for their plan data for purposes of due diligence; Anthem resisted the request. As a result, Owens & Minor were forced to file a lawsuit to access their own healthcare data.?

Analysis of the partial data finally released by Anthem allegedly reveals significant financial mismanagement resulting in tens of millions of dollars in losses. And that is just the beginning. ?

Bottom line: It shouldn’t be so hard to obtain something that is already yours. Recent amendments to ERISA requirements put increased pressure on employers to understand and protect employee health benefits. This lawsuit will not be the last as employers fight to get their own health information from plan administrators who may be reluctant to share.

Trinity Health Michigan/Nomi Health Collaboration

Employers in Michigan are projected to spend a staggering $16,000 per employee on health benefits in 2025, a 9% increase from 2024. Trinity Health Michigan and Nomi Health are coming together to attack this rise by expanding access to direct contract solutions that cost 20% less for the same high-quality care. For those keeping score at home, this collaboration puts employers at 30% below the expected average cost of healthcare for 2025. Local businesses in the West Michigan market?will have a significant competitive edge. By dramatically reducing healthcare costs and enhancing benefits, companies can attract top talent and reinvest savings into growth initiatives.??

This approach has the potential to energize the local economy, strengthen job satisfaction, and foster innovation across West Michigan, positioning Nomi Health and Trinity Health as leaders in forward-thinking, cost-effective employee benefit solutions.?

Is there something you want to know or discuss about healthcare? Do you have innovations and solutions you’d like us to feature? Tell us in the comments!??

Until next time,?

The Nomi Health Team?