Trump Backs Deep Spending Cuts
Emerging from a meeting with Speaker Mike Johnson, R-LA, and House Republicans, President Trump declared he is supportive of major spending cuts. The meeting was meant to allay concerns of rightists in the House GOP caucus. Trump wrote on Truth Social: “I let them know that, I AM FOR MAJOR SPENDING CUTS! WE ARE GOING TO DO REDUCTIONS, hopefully in excess of $1 Trillion Dollars, all of which will go into ‘The One, Big, Beautiful Bill.’”
Trump urged the House GOP to support a watered-down budget reconciliation framework from the Senate in the meantime but promised to help assemble meaningful reductions, most of them likely from healthcare. Trump said he would “be pushing very hard” to get deeper cuts.
The budget bill looks to be a battle of the House and conservatives against the Senate and some more moderates who disagree on the level of spending reductions. Each chamber has tiny margins with which to work.
In other news, more evidence Medicare Advantage (MA) could be put on the table for cuts. Republicans support MA but increasingly are critical of risk adjustment overpayments and denial of care in the program.
Additional article: https://www.statnews.com/2025/04/08/republican-budget-plan-calls-for-medicare-advantage-reform-grow-unitedhealth/
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#trump #congress #spending #budgetreconciliation #healthcare #medicaid #medicareadvantage
Biosimilars Gaining PBM Interest
After years of criticism that pharmacy benefits managers (PBMs) cozied up to brand drug makers for rebates and locked out biosimilars from formularies, PBMs now appear to be gaining interest in placing biosimilars on formularies. The move ties to demands from drug spending relief from employers, criticism from consumers, pressure from government investigations, and moves toward greater transparency by the PBMs themselves.
While only about 2% of people use specialty medications, these drugs account for more than half of pharmacy spending. Biosimilars are very much centered on this part of the drug market.
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#biosimilars #drugpricing #pbms #branddrugmakers
https://www.modernhealthcare.com/insurance/cvs-caremark-express-scripts-optumrx-biosimilars
Hospital Mergers Down
A new report from consultancy Kaufman Hall says health system mergers have hit their lowest quarterly number in more than a decade. Just five hospital merger and acquisition proposals were announced in the first three months of the year. The slowdown is blamed on regulatory uncertainty, the unknowns over tariffs, concerns on federal funding, and economic volatility. Four of the announced mergers dealt with distressed hospitals.
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#hospitals #manda #mergers #acquisitions #antitrust
https://www.modernhealthcare.com/providers/hospital-mergers-acquisitions-2025-tariffs
Walgreens Takes Another Charge For VillageMD Investment
Struggling pharmacy retail chain Walgreens is taking another $1.9 billion impairment charge related to its failed investment in VillageMD, its retail primary care investment. This brings the charges to a total of almost $8 billion.
The firm will go private in a private equity deal. Sycamore Partners will pay nearly $24 billion, including debt.
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#retailmeetshealthcare #primarycare #walgreens
https://www.modernhealthcare.com/providers/walgreens-villagemd-2025-outlook
CVS Shuffles Leaders Again
In more leadership changes, CVS Health CEO David Joyner announced that Chief Financial Officer Tom Cowhey will depart the role and Brian Newman, who led finance at United Parcel Service, will succeed him. Cowhey will stay on for a while at least as a strategic adviser to Joyner.
CVS also named Amy Compton-Phillips the company’s new executive vice president and chief medical officer.
Additional article: https://www.fiercehealthcare.com/finance/cvs-names-former-ups-financial-leader-brian-newman-cfo
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#cvshealth #aetna
https://www.modernhealthcare.com/people/cvs-health-cfo-thomas-cowhey-david-joyner
— Marc S. Ryan
