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GOP tax bill’s quiet Medicare cuts

July 29, 2025
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Washington Correspondent, D.C. Diagnosis Writer

RFK Jr. found a bench at the FDA engraved with the message: "The devil has got hold of the food supply of this country." It reads like a MAHA call to arms, but the bench was installed in 2012, and the quote seems to be by former Nebraska Sen. Algernon S. Paddock, who — in 1892 — was complaining about the food contamination and tampering that led to the FDA's creation.

medicare

GOP tax bill's cut to Medicare

Bob Herman dug into Republicans' recently passed tax bill and found a de facto cut to Medicare.

Republicans were careful to focus federal cuts on Medicaid, and President Trump promised to not touch Medicare. (There's still the question of whether the deficit increases in the bill will trigger sequestration cuts to Medicare.) 

That aside, the new law cancels parts of a Biden-era rule that had made it easier for low-income Medicare beneficiaries to get help paying their premiums for coverage of outpatient services.

Read more about how the new red tape will effectively cut Medicare benefits.


trade

15%

That's the tariff level President Trump has agreed to for pharmaceuticals coming from the European Union as part of a new trade deal, Daniel Payne reports with Elaine Chen.

But the tariffs won't take effect until a separate national security investigation related to pharmaceutical imports is completed. 

There has been substantial concern in the pharmaceutical industry about the business implications of tariffs. The new E.U. rate is well below the towering tariffs the president had been threatening. Trump previously said he was considering a 200% tariff on pharmaceuticals. Read more.



preventive care

RFK Jr. has doctors on edge

Chelsea Cirruzzo explains why the country's largest doctor lobbying group is worried about a Wall Street Journal report that HHS Secretary Robert F. Kennedy Jr. plans to dismantle the U.S. Preventive Services Task Force.

The panel was created in the 1980s, and Obamacare gave it more power by requiring health insurers to cover services it recommends, from cancer screenings to drugs that prevent HIV.

The American Conservative criticized the task force earlier this month for "advocacy of left-wing ideological priors" and for recommending HIV prevention drugs. Read more.


research funding

Projecting the long-term impact of NIH cuts

The impact of President Trump's proposed cuts to NIH research is probably much bigger than initial estimates, Anil Oza reports

Analyses have focused on the short-term losses from research funding cuts, and the authors of the new research, published in JAMA Health Forum, wanted to contemplate the long-term consequences. 

They predict that the effects will be sprawling and cost the country more than is being saved through the cuts. Read more.


mental illness and addiction

Well, that's one way to reduce homelessness

Trump wants to make it easier to force people with severe mental illness into treatment facilities. It's part of his plan to end homelessness, O. Rose Broderick reports.  

Research has shown that the Biden administration's "housing first" approach to homelessness works better than treatment-first models in helping people stay healthy and off the street. Trump's approach, part of an executive order he signed last Thursday, reverses the approach. 

Read more for public health professionals' thoughts on involuntary commitment.

Lev Facher wrote about the executive order's threat to withhold funds from supervised drug consumption sites and potentially pursue criminal penalties against them.  

Read more from Lev about the two sites in New York that are the most vulnerable to the executive order.


women's health

FDA asks public to weigh in on menopause hormone therapy

The FDA is asking for public input on the risks and benefits of hormone therapy for women in menopause, Lizzy Lawrence reports. 

The products' labels contain a black box warning consumers of potential stroke and breast cancer risk. FDA Commissioner Marty Makary says the warning should be removed; a panel he recently organized at the agency included experts who mostly agreed with him.

The FDA has hosted a slew of expert panels in recent months that tend to be one-sided, including a recent one on SSRI use during pregnancy that featured mostly skeptics of the drugs. The solicitation for comments on menopause hormone therapy is the first example of one of these panels potentially leading to concrete regulatory action.


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What we're reading

  • AI for Medicaid work requirements: Why CHAI's 'tiger team' faces an uphill task, STAT
  • Congressional panels resist White House proposals for sharp cuts in indirect cost rates, Science
  • Hospitals nab $4 billion in extra Medicaid funds, before Republican cuts take effect, STAT
  • Judge blocks Trump administration's efforts to defund Planned Parenthood, AP

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