Healthcare in Flux: Sweeping Changes and Cybersecurity Concerns
A New Era in Healthcare
The first week of the new administration brought significant changes to the US healthcare landscape. President Trump signed an executive order to withdraw the US from the World Health Organization (WHO), citing mishandling of the Covid-19 pandemic and other international health crises. This move could have far-reaching implications for the US, including losing access to the WHO’s global network for setting flu vaccine compositions.
Reinstating the “Mexico City Policy”
Trump also reinstated the “Mexico City Policy,” a long-standing Republican anti-abortion proposal that bars federal funding from going to overseas non-governmental organizations that perform or promote abortions. This move reverses the Biden administration’s efforts to expand access to abortions in the US.
Communication Hiatus at Federal Health Agencies
The Trump administration has told federal health agencies to pause external communications, including the Centers for Disease Control and Prevention, the Food and Drug Administration, and the National Institutes of Health. This communication hiatus is expected to last until February 1.
Rescinding Drug Pricing Models
Trump rescinded an executive order from the Biden administration that created three drug pricing models aimed at lowering prescription drug costs for people on Medicare and Medicaid. These proposals, announced in February 2023, had not been implemented.
Cybersecurity Concerns
UnitedHealth Group revealed that a cyberattack on its subsidiary Change Healthcare affected around 190 million Americans, making it the largest reported healthcare data breach in US history. The company said the “vast majority” of affected individuals have been notified, and an official final number will be submitted to the US Department of Health and Human Services Office for Civil Rights.
Impact on Healthcare Providers
The breach caused significant disruption to healthcare providers, with many doctors left without a way to fill prescriptions or get paid for their services. Some providers took thousands of dollars out of savings to keep their doors open.
New Leadership at UnitedHealthcare
UnitedHealth announced that Tim Noel, a company veteran, will serve as the new head of the insurance arm. This move comes amid concerns about the company’s handling of the cyberattack and its impact on the healthcare sector.
Healthcare Sector Outlook
Despite declines in the healthcare sector at the end of last year, analysts predict a healthy bounce back this year. The S&P health care sector is already the best performer in January, driven in part by cautious optimism among startups focused on nutrition counseling for patients in government plans.
Nutrition Counseling Gains Traction
Nutrition counseling has begun to gain traction in Medicaid programs to help combat obesity and diabetes through diet rather than costly GLP-1 drugs. If confirmed, Robert F. Kennedy Jr.’s nomination to be secretary of Health and Human Services could give these programs a boost.
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