Prior to 2023, vendor misstatements of outcomes were only of academic interest to folks like the Validation Institute, and to purchasers who prioritized management of their healthcare spending in practice, rather than just as a talking point. However, the Consolidated Appropriations Act changes everything. Today, significant penalties await those who pay vendors who claim illegitimate outcomes.
The Consolidated Appropriations Act, 2021 (CAA) is designed to increase transparency in employee health benefit plans. As fiduciaries of the benefit plan, Government agencies like the Department of Labor, the Department of Health and Human Services, and the Treasury will hold employers responsible and accountable for the CAA. What does this mean for employers and how should CEOs meet their fiduciary obligation to their employees/plan members?
The health and wellness industry offers myriad solutions. In particular, MSK (Musculoskeletal) solution providers vendors are on the rise – which is no surprise given MSK conditions are a major cost driver for employers. It is critical for employers to choose a vendor partner that aligns with the needs of their organization and most importantly their population.