January 28, 2025

Trump Spending Freeze Order Creates Chaos

A federal judge has stayed a decision by President Trump’s Office of Management and Budget (OMB) to essentially freeze billions in federal grants and disbursements. It capped a whirlwind day of confusion and vitriol.

Democrats cried that the executive branch was usurping congressional authority and the lawmakers and a coalition of non-profit groups won the stay until early next week. The administration argued it had the duty to look at outlays after years of runaway spending. Objectively, what happened appeared to be the first major misstep of the administration. Whatever one’s views on the action, it was clearly not well telegraphed or rolled out. The White House had to refine what was indeed stalled at several points today, finally landing on the fact that direct aid to individuals, such as welfare, Medicaid, and Medicare, was not being impacted. But other healthcare grants that do benefit Americans would undoubtedly have been impacted.

The battle will be just one in many coming up. The OMB said that outlays would resume after they determine whether spending aligns with Trump’s executive orders. The White House may also seek to use impoundment, which is very likely illegal. There, too, will be the major spending reductions expected in a budget reconciliation bill.

Additional articles: https://www.fiercehealthcare.com/regulatory/trump-admin-orders-temporary-pause-most-federal-financial-assistance and https://www.modernhealthcare.com/politics-policy/trump-pause-federal-grants-temporarily-blocked-judge and https://www.healthcaredive.com/news/trump-freezes-federal-grants-healthcare-medicaid-providers/738449/ and https://insidehealthpolicy.com/daily-news/advocates-worried-trump-pause-grant-funding-impacts-medicaid-chip and https://www.modernhealthcare.com/politics-policy/trump-pauses-federal-grants-loans-funding and https://www.modernhealthcare.com/politics-policy/federal-funding-freeze-grants-medicaid and https://www.modernhealthcare.com/politics-policy/trump-pause-federal-grants-freeze-white-house

(Some articles may require a subscription.)

#trump #healthcare #spending #congress #impoundment #budgetreconciliation #medicare #medicaid

https://thehill.com/regulation/court-battles/5111837-trump-federal-aid-freeze-blocked

Prominent House Ways and Means Republican Outlines Spending Reduction Approach

Very interesting article on some Republicans’ views on what the right kind of healthcare cuts may be. These Republicans, such as influential GOP House member Greg Murphy (a doctor and former hospital executive), say that a scalpel, not an ax, should be used. Murphy wants patients and providers to be considered when making cuts.

Murphy says plenty of savings can be found by looking at aberrant physician behavior, Medicaid work requirements, tightening enrollment to stop those who should not be covered, health plan and pharmacy benefit reforms, limiting the role of big healthcare, and reform of Medicare Advantage (MA) and overpayments. While changes in the Affordable Care Act (ACA) need to occur, he is not calling for its end given how many benefit. He, too, wants a Medicare doc fix.

In other news, a group of moderates have signaled their opposition to major ACA and Medicaid cuts. They fear a bad outcome in the 2026 midterms in addition to being sympathetic to safety net issues.

Murphy’s and the moderates’ views show two things. There are likely a number of Republicans in both Houses – moderates and even conservatives – who will voice opposition to radical healthcare changes impacting coverage. As well, Murphy is one of a growing number of conservatives who has an anti-corporate welfare mentality. This means big healthcare and MA will be on the chopping block.

I predicted these trends in my blogs related to 2025 predictions as well as what the first 100 days of Trump could hold.

Additional article: https://insidehealthpolicy.com/health-insider/rfk-jr-heads-barrel-house-hunkers-florida-plot-reconciliation

(Articles may require a subscription.)

#aca #obamacare #medicaid #healthcare #coverage #congress #budgetreconciliation

https://www.modernhealthcare.com/politics-policy/greg-murphy-medicaid-cuts-medicare-advantage

RFK, Jr. To Back Off Vaccine Stance

As he goes before two confirmation hearings in the Senate this week, Department of Health and Human Services nominee Robert F. Kenndy, Jr. will back off his controversial vaccine stances and say he is not anti-vaccine, but pro-safety. While his views on vaccines will still be an issue, his stand on food safety in America will win plaudits.

In related news – and more good news for Trump’s ever-fluid drug pricing position – Kennedy told senators in closed-door meetings that he is open to adopting so-called march-in rights on patents as a way to lower drug prices. An amazing development.

Finally, a new Kaiser Family Foundation (KFF) tracking poll finds that just 42% of those surveyed have a great deal or fair amount of trust in Trump when it comes to healthcare issues. 43% of those surveyed responded the same to Kennedy and Centers for Medicare and Medicaid Services (CMS) head nominee Dr. Mehmet Oz.

Additional article: https://www.politico.com/news/2025/01/27/rfk-jr-health-drug-pricing-00200830 and https://thehill.com/policy/healthcare/5110532-donald-trump-robert-f-kennedy-jr-mehmet-oz-health-issues-survey/

(Some articles may require a subscription.)

#rfkjr #hhs #congress #trump #healthcare

https://www.modernhealthcare.com/politics-policy/rfk-jr-vaccines-senate-confirmation-hearings-hhs

Better Medicare Alliance Urges Caution On 2026 MA And Part D Rule

In its comments to the proposed 2026 Medicare Advantage (MA) and Part D rule, the Better Medicare Alliance (BMA) recommends that the new Trump administration only finalize things required by law. At the same time, the advocacy group for MA did urge finalization of certain proposals, including provider directory mandates, supplemental benefit reforms, a Value Based Insurance Design (VBID) extension, dual eligible streamlining, and marketing reforms. BMA’s position is a good one. The expansion of GLP-1s to obesity and minimum medical loss ratio (MLR) changes are very controversial and should be scrapped given all MA is going through right now.

#bma #medicareadvantage #cms #regulations

https://bettermedicarealliance.org/news/better-medicare-alliance-calls-for-cms-to-implement-only-those-provisions-required-by-law-in-2026-proposed-rule-to-protect-medicare-advantage-beneficiaries/

— Marc S. Ryan

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