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Upheaval at HHS

March 4, 2025
Reporter, D.C. Diagnosis Writer

Hello and happy Tuesday. D.C. Diagnosis readers! We're in for a long day, as President Trump is set to address Congress tonight. What health care policies are you hoping  — or dreading — to hear about? As always, send news and tips to sarah.owermohle@statnews.com.

suddentrump administration

HHS exits and tension

HHS' top spokesman abruptly resigned Friday following tensions with Secretary Robert F. Kennedy Jr. and his team, according to two people familiar with his departure. Thomas Corry was a veteran of the first Trump administration, having worked as a CMS communications director. 

His sudden departure, just two weeks into the role, comes amid scrutiny of the agency's measles outbreak response, including an op-ed this weekend from RFK Jr. calling the decision to vaccinate "a personal one."

Corry's departure isn't the only one. At least one other person left HHS' comms shop this past Friday for another job. Others in HHS and familiar with the public affairs division described confusion and frustration with the new secretary's team and the chain of command. More from me

And more: As RFK Jr. delivers his message on measles, public health experts hear a familiar tune, from Helen Branswell. 


SCIENCE POLICY

Meet Jay Battacharya 

If confirmed by the Senate following his confirmation hearing this week, NIH nominee Jay Bhattacharya will be entrusted with directing the biggest funder of biomedical research in the world.

Bhattacharya, who long aspired to be a doctor after seeing his father's recovery from a heart attack, is now slated for an interrogation by senators this week over NIH's mandate and the future of federal health research. To hear his many research collaborators say it, he's a man of contradictions — and reason, as they tell STAT's Eric Boodman. 

Eric dove into Bhattacharaya's winding road to NIH, his emergence as a critic of the federal Covid-19 response and what he is set to face heading up the nation's health research center. Read more.



at the agencies

Layoffs, confusion disrupt CMS 

Leaders at the Centers for Medicare and Medicaid Services still haven't formally received a list of who was fired in the initial round of cuts from the Trump administration. They think at least 300 of the agency's 6,700 employees have been let go — but don't know for sure, Bob Herman reports.

It's the latest round in upheaval, confusion and flagging morale across the federal health agencies. The administration is getting pushback: On Friday, a top career official retired, and on his way out, excoriated the federal human resources officer who carried out the firings.

Two divisions within CMS have been hit especially hard: the Center for Medicare and Medicaid Innovation and the Center for Consumer Information and Insurance Oversight, which oversees ACA plans. More from Bob.


budget talks

Checking the Medicaid math 

Republicans are looking for a politically palatable way to potentially cut hundreds of billions in Medicaid spending to offset tax cuts. It's a thorny prospect that has riled constituents across multiple lawmakers' town halls these past weeks. But as my colleague John Wilkerson writes, Republicans are finding their way to Medicaid cuts through another approach, and a favorite buzzword of this administration: fraud.

They're getting crucial new support for that effort from influential conservative think tanks the Paragon Health Institute and the Economic Policy Innovation Center. On Monday, they released a paper estimating that Medicaid made about $1.1 trillion in improper payments over the past decade. The paper argued that policies to lower that figure could save hundreds of billions of dollars.

Still, other analysts argue those figures are not signs of fraudulent spending but missing documentation and other errors. In 2024, for example, CMS estimated that about $31.1 billion of payments were improper, or about 5.1% of the total projected by conservatives aimed at reining in Medicaid spending. More from John.


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What we're reading

  • Pfizer revises its DEI webpage to emphasize importance of 'merit,' STAT
  • To solve for doctor shortages, states ease licensing for foreign-trained physicians, NPR
  • Exclusive: DOJ probes device maker whose test resulted in lucrative diagnoses for UnitedHealth and other insurers, STAT
  • ICER finds GSK inhalers offer advantages over generic competitors, Endpoints

Thanks for reading! More on Thursday,


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