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Scoop: Former Trump White House aide likely to run CMMI

January 14, 2025
Reporter, D.C. Diagnosis Writer

Hello and happy Tuesday, D.C. Diagnosis readers! Be sure to follow along with my colleagues covering JPM's annual health care conference this week. And as always, send news, tips and potential confirmation hearing dates (👀) to sarah.owermohle@statnews.com.

trump transition

Ex-Trump White House aide Abe Sutton likely CMMI pick

To add to the list of personnel news trickling out of the Trump transition ahead of inauguration, my colleague Rachel Cohrs Zhang scooped last night that former Trump White House and HHS aide Abe Sutton is Trump's likely pick to direct the Center for Medicare and Medicaid Innovation. 

The pick (which isn't final until it's final) is one of the first indications of how CMS administrator nominee Mehmet Oz's team could be built out in Washington.

In his prior work in the Trump administration, Sutton was the architect of the first Trump administration's kidney care initiative, and also worked on drug pricing and individual market insurance issues at the White House. Read more


in the courts

What Braidwood means for preventive health 

The Supreme Court on Friday agreed to hear a challenge to an ACA requirement that insurers cover preventive health care. A ruling for Braidwood Management — which represents a group of conservative Texas employers — could stymie access to a range of preventive medicines and services. But the plaintiffs' ire is focused on a few in particular: Birth control options and the HIV preventive medicine PrEP. 

Their case rests on the argument that the panel which issues these requirements for no-cost coverage doesn't have the authority to do so. Braidwood is the latest attack on the ACA to come before the courts. But it's also a significantly pared-back version of the original suit: The Supreme Court declined to hear challenges to the authority of two other expert panels that shape vaccine and women's health coverage. They will hear arguments this upcoming session, with a decision expected by July.

That's in line with lower court rulings including last summer. But the case still leaves the U.S. Preventive Services Task Force, and its purview over everything from birth control to cancer screening and mammogram coverage vulnerable. If insurers are not required to cover PrEP, for instance, the costs of prescriptions and related bloodwork could run patients thousands of dollars, public health experts have previously told me. Lack of PrEP access could also challenge President-elect Trump's first-administration goal to slash HIV rates. More from me on past Braidwood arguments


public health

RFK Jr.'s next target: Booze? 

Trump's pick to lead HHS, Robert F. Kennedy Jr., and his "Make America Healthy Again" allies have a litany of priorities from reassessing vaccine policy to stepping up regulations on ultra-processed foods and sugary drinks. But where might alcohol policy fit into a MAHA universe? 

Public health experts are increasingly warning of the risks of alcohol consumption; current Surgeon General Vivek Murthy recently recommended stronger warning labels on alcohol to disclose those risks.

And while Kennedy himself has not spoken in recent months about alcohol as a driver of chronic disease and death, others in his sphere have, Isabella Cueto writes. Yet alcohol has typically been seen as politically untouchable compared to other food and drug arenas. Read more


transition watch

A look at RFK Jr.'s biotech investing

RFK Jr. invested in biotechnology companies and had multiple sources of income in 2022 and 2023, Isabella reports.

The financial disclosures, obtained through a public records request, offer more insight into Kennedy's recent work and investments as he prepares for a Senate confirmation hearing in the weeks ahead. RFK Jr. is still meeting with lawmakers to secure their votes; the Finance Committee could schedule a confirmation hearing as soon as this month.

RFK Jr. made hundreds of thousands of dollars last year as a senior attorney at a firm that represents clients in "health freedom" cases, and separately as a consultant for Skyhorse Publishing, where he delivered author introductions, forewords and book ideas. He made another $30,000 as a health care consultant for a consultancy that advises on congressional and federal agency actions.

He also listed investments both years in a biotech focused on cancer immunotherapies and autoimmune diseases. More from Isabella



 

eye on fda

FDA's top drug official departs 

Patrizia Cavazzoni, leader of the FDA's Center for Drug Evaluation and Research, is leaving the agency on Jan. 18.

She's the latest top official to exit as Trump prepares to take office. Public health experts have expressed concern that longtime FDA staff may choose to leave due to fears of working in an antagonistic environment, depleting the agency of expertise, Lizzy Lawrence and Adam Feuerstein write. Read more on recent departures and the FDA climate heading into the next administration. 


industry watch

Biden antitrust official: Big health companies need breaking up 

The federal government needs to consider breaking up the powerful companies that have price-gouged patients and suppressed competition, a former top antitrust official for President Biden told STAT.

Jonathan Kanter — who left his job as DOJ assistant attorney general in December — said today's biggest health care conglomerates have built platforms that let them extract heavy profits from consumers and taxpayers. That risks a situation where a few giants hold a "massive amount of power and control," sidelining smaller doctors, pharmacists and insurers, he told STAT's Bob Herman. 

Kanter declined to comment specifically on any company, including UnitedHealth Group, the largest health care company in America, or any pending DOJ lawsuits or investigations. DOJ is suing to block UnitedHealth's acquisition of Amedisys, a home health and hospice company. Read Bob's highlights from their conversation and watch the whole interview

Plus: The Justice Department is interviewing former UnitedHealth Group physicians about their experiences working at practices owned by the health care giant, two sources with knowledge of the inquiries told STAT's Tara Bannow. At least one has also been approached by California's AG office. Both doctors were interviewed for STAT's Health Care's Colossus series. 


More around STAT
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What we're reading

  • Biden's final Medicare Advantage regulation would hike payments to insurers, STAT
  • Drug industry lawyers, experts helped shape U.S. drug price cuts, Bloomberg Law
  • Cigna, Centene, Walgreens drop out of J.P. Morgan conference, STAT
  • Billed as nonaddictive, new pain pill could soon win FDA approval, The Washington Post
  • In debate over obesity medications, FDA shifts toward importance of drugs in subtle ways, STAT

Thanks for reading! More on Thursday,


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