D.C. deluge

Every new administration ushers in sweeping changes, including shifting regulatory priorities, changes in leadership at key agencies, and potential changes in health care policy. So is this time really any different? Well, yeah.

“What makes this moment distinct is the sheer scale of transition — not just in the White House, but in Congress as well,” says Jessica Brooks Woods, CEO of NABIP. “A new administration and a newly shaped legislative landscape mean a fresh approach to health care policy, though the specifics remain to be seen. This uncertainty creates challenges in navigating a shifting regulatory environment, but also opportunities to shape policies that better serve businesses, brokers, and consumers alike.”

Jennifer Berman, an employee benefits attorney, compliance consultant, and CEO of MZQ Consulting, is no stranger to the inner workings of D.C. And she agrees that the current environment is unprecedented in many ways and comes with a set of unique challenges. “We never know what is going to happen next in our legislative and regulatory environment, but historically, things have been much more predictable. Today’s world is characterized primarily by uncertainty and the speed of change. But in reality, the need to respond quickly to change isn’t new. What’s different is that we have less lead time now than we used to.”

As the world speeds up and pressures continue to rise, it further reinforces the importance of what’s at stake — and the real impact all of this is having on Americans across the country.

Tragedy highlights long-standing issues

In addition to regulatory chaos and political turmoil, benefits advisors and others in the industry are facing another challenge: a crisis of trust.

“What sets this moment apart is the deepening crisis of trust in our health care system — one that has now escalated beyond frustration and policy debates to deadly consequences,” says Brooks Woods. She notes that the tragic assassination of UnitedHealthcare CEO Brian Thompson brought to the forefront the deep anger and disillusionment of everyday Americans.

“This was not just a shocking event; it was a stark warning about the real and growing disconnect between the industry and the people it serves,” she says. “The reaction from consumers has been swift and loud — they are demanding better. They are calling for accountability, transparency and meaningful change in a system that has too often been misaligned.”

For years, many in the industry have been warning of a moment where Americans’ frustration with the U.S. health care system would boil over. Now that it has happened, the question becomes, will this be a true catalyst for meaningful change, or, like the murder of George Floyd, another soon forgotten footnote in a long-standing national tragedy?

“This cannot be another fleeting moment in time,” says Brooks Woods, “another headline that fades without action. It must serve as a catalyst for transformation — a wake-up call that forces every stakeholder in this system to acknowledge its failures and take responsibility for fixing them. The health care industry is at an inflection point: Will we continue with business as usual, or will we rise to meet this moment with real, systemic change?”

Challenges and opportunities

At a crossroad and facing an endless list of daunting challenges, how can benefits advisors and their partners truly make a difference?

“Stay alert and stay agile,” says Berman. “Proactively focus on what’s best for plan participants. There is a lot of uncertainty, but that can’t stop advisors from doing the next right thing. By helping plan sponsors focus on understanding their fiduciary responsibilities, advisors can change industry norms and help employers manage uncertainty.”

Tracy Watts agrees about the importance of helping those who need it most: employees and their families. Her advice to advisors? Stay focused and don’t be fooled by quick fixes. True change won’t come easily or quickly, but will instead require creativity and long-term commitment.

“Health benefit cost per employee rose 4.5% in 2024 and is predicted to rise 5.8% in 2025,” she says. “These are among the highest annual increases we have seen in a decade, driven by increasing prescription drug costs and high cost claims. What makes it all the more concerning is that over half of CFOs last year said that for costs to be sustainable, annual increases need to be held to the level of CPI or below. Only 1 in 5 said that increases two points above CPI would be acceptable – and yet that’s where we are. In this environment, quick fixes won’t accomplish much – a thoughtful multi-year strategy is likely the best path to optimal value for employees and the business.”

While these challenges can easily become overwhelming, Berman notes that there’s another way to look at it — if you’re willing to put in the time and effort.

“Every challenge is an opportunity. The biggest challenges right now are the lack of certainty and the speed of change.”

She cites the recent executive order issued by the Trump administration regarding IVF access as a real-life case study of how advisors can guide clients and their employees. “We still don't know what this will mean for employer sponsored plans, but advisors who take each of these changes as an opportunity to be in front of their clients educating and partnering with them will be able to show their true value.”

Real change takes time

Many advisors and other benefits professionals are passionate, dedicated and in it for the long run. And while this moment is unprecedented and overwhelming, it is also vitally important. Novelist Celeste Ng offers this advice for difficult times: “It's easy to feel helpless — like you can't fight the tide. But remember: Small actions can have a huge impact, and one person can inspire others to action”

Yes, the task of fixing American health care is enormous, but it can be done. How?

“While it certainly feels as if we’re all in a state of flux, it’s important to remember that real change takes time,” says Watts. “As consultants, brokers and plan sponsors, our voice needs to be heard in Washington D.C. There are some great advocacy groups that will amplify our unified voice. Join and support one of these groups and help tell the story of employer sponsored insurance. Working together, we can share data on what is important to our industry and our clients and educate lawmakers about possible unintended consequences. We all have a role in this work.”

Woods Brooks echoes this call to action for those in the benefits industry.

“This is no longer just about policy debates or market forces,” she says. It’s about restoring faith in an industry that millions of Americans rely on but no longer trust. The question isn’t whether change will happen — it’s whether we, as an industry, will be the ones driving it or resisting it.

“For benefits advisors, the answer is clear: We must rise and ensure that this moment leads to real change. We owe it to the consumers who depend on us, to the businesses looking for better solutions, and to the memory of a leader whose loss should not be in vain.”

The obstacles are daunting and the stakes have never been higher; but this is the moment in time that our industry has been building toward for so long. Are you ready?