The Squeeze Is On

KFF Health News — The US has seen a decline in psychiatric beds since the 1950s, resulting in a critical shortage for those needing help, with only 28.4 inpatient psychiatric beds per 100,000 people.

This shortage has led to emergency rooms being overwhelmed and acutely ill individuals being left without critical care.

The author shares their personal experience of being involuntarily committed and struggling to find a psychiatric bed, highlighting the flaws in the mental healthcare system.

Employee Wellness — A recent survey found that 59% of knowledge workers are showing burnout symptoms, a significant increase from 48% in 2022. This rise in burnout is likely linked to workplace stress and poor mental health.

Companies are being encouraged to address this issue through corporate wellness initiatives and emotional regulation strategies.

Employee Benefit Trends — Some employers are directing workers to cash platforms for GLP-1 obesity drugs, according to a recent report from Pharmaceutical Strategies Group (PSG).

The PSG report, Trends in Drug Benefit Design, highlights payers' growing scrutiny of certain drug benefits. This shift may affect how employers design their prescription drug coverage for obesity treatments.

Employee Benefit Trends — Weight-loss drugs have become a contentious issue for company healthcare plans, according to a survey by the International Foundation of Employee Benefit and a report by the Pharmaceutical Strategies Group.

The 2026 Trends in Drug Benefit report highlights the growing concern over the cost and coverage of these medications.

Employers are facing challenges in managing the rising costs of weight-loss drugs in their healthcare plans.

Nebraska Examiner — Affordable Care Act Marketplace insurers are proposing a median premium increase of 14% for 2027, citing the expiration of enhanced premium subsidies, rising healthcare costs, and changes in federal regulations.

The proposed increases range from 10% to over 20%, with 20 insurers requesting increases of more than 20%. This is the second year in a row with double-digit hikes, following a 20% increase in the previous year.

HR Executive — The No Surprises Act's payment dispute process is driving up costs for planned medical procedures, with providers winning nearly 90% of disputed claim lines and receiving payments often tens to hundreds of times higher than typical in-network commercial rates.

The Elevance Health Public Policy Institute's study examined over 7,300 payment disputes involving procedures like spine surgery and colonoscopy.

The dispute resolution process is being used in ways that diverge from the law's original intent, leading to higher costs for employers and families.

HR Executive — A survey of 2,000 workers in the U.S. and UK found that 4 in 10 U.S.-based employees have used AI to create a fake receipt on a business expense report, with nearly 20% creating entirely fabricated content.

The use of AI in expense report fraud is a growing concern, with Emburse's Chief Revenue Officer suggesting that fraud detection processes need to be updated to detect fabricated content.

Employees' financial struggles, such as waiting for reimbursements and incurring overdraft fees, may be contributing to the fraud.

Employee Benefit Trends — A global survey found that 49% of employees are planning to look for a new job in the next six months due to growing job security concerns, while 63% of employers have no plans to reduce headcount in 2026.

Employees who feel their job is at risk are more likely to start applying elsewhere, and 56% believe their employer underinvests in professional growth.

The report highlights a communication gap between employers and employees on issues like salary and benefits, with 70% of employees valuing working from home as the most important benefit.

Nebraska Legislature — Nebraska Governor Jim Pillen has issued a memo directing state agencies to reduce spending in areas such as travel, hiring, and equipment purchases to address a $307 million shortfall in state revenue.

Agencies will be required to submit monthly reports detailing their cost-saving initiatives, with the State Budget Division responsible for reviewing and approving these reports.

The reductions will affect appropriations for the current fiscal year and the next two biennium years, FY 27/28 and FY 28/29.

Employee Benefit Trends — The US Department of Labor's Wage and Hour Division issued guidance on May 28, 2026, clarifying that a 30-minute unpaid meal period remains non-compensable under the FLSA, even if employees spend part of the time walking to parking or passing through security.

The guidance emphasizes that the focus is on whether employees are relieved of duty, not on whether they can maximize every minute of the meal period for off-site activities.

Employers should review their meal-period policies to ensure compliance with the FLSA and applicable state or local laws.