Capitol Insights Newsletter

Authors: Luke Schwartz and Matt Reiter

What happened in Congress this week?

The House Appropriations Committee held a hearing on the National Institutes of Health (NIH) on Tuesday. This hearing focused on NIH funding, priorities, structural reforms under consideration, and the efficiency of its institutes. House Republicans are proposing an NIH restructure as part of their latest Labor HHS Appropriations bill for FY2025.

 

Robert F. Kennedy Jr. and Dr. Oz Nominated for Prominent Health Policy Roles

President-elect Trump is actively organizing his Cabinet for his second presidential term. Each Cabinet nominee must receive a simple majority in the Senate to be confirmed. In cases of a 50-50 tie, the Vice President casts the deciding vote, meaning nominees will need at least 50 votes for confirmation as Vice President Vance would break a tie.

Positions like Department of Health and Human Services (HHS) Secretary and Centers for Medicare and Medicaid Services (CMS) Administrator will be critical for setting the health policy agenda in Trump’s second term.

Last week Trump announced he will nominate Robert F. Kennedy Jr. for HHS Secretary and Dr. Mehmet Oz for CMS Administrator. This featured topic will summarize their health policy positions and explore how they might shape health policy during Trump’s second term.

Robert F. Kennedy Jr. – HHS Secretary

After dropping his own presidential bid in August, Kennedy quickly endorsed Donald Trump and became one of Trump’s most prominent allies on the campaign trail. Following Trump’s victory, he appeared poised for a role in the new administration in some capacity. Trump ultimately nominated him HHS Secretary to lead what has been dubbed an effort to “Make America Healthy Again.”

Here’s an overview of Kennedy’s recent health policy positions:

  • Healthier American foods: He is a vocal advocate for improving the quality and healthiness of American food products by removing excess ingredients.
  • Skepticism toward vaccines: Kennedy has raised concerns about vaccine safety and transparency.
  • Focus on chronic diseases: Kennedy has emphasized the need for renewed efforts to combat chronic illnesses nationwide.
  • Abortion stance: Kennedy’s pro-choice stance on abortion could clash with the pro-life views held by the Senate Republicans that must confirm him.
  • Reigning in Big Pharma advertising: Kennedy has proposed prohibiting pharmaceutical companies from advertising on television.
  • Removing fluoride from the water supply: Kennedy has expressed a desire to eliminate fluoride from the water supply due to supposed unhealthy side effects.
  • Challenging the AMA’s RUC process: Several new reports this week indicate Kennedy could challenge the role the American Medical Association’s (AMA) Relative Value Scale Update Committee (RUC) play in determining healthcare prices.

This list of priorities does not fully align with the health policy platform from the first Trump Administration, which focused on topics such as price transparency and alternatives to the Affordable Care Act (ACA).

Dr. Mehmet Oz – CMS Administrator

Dr. Mehmet Oz (or better known by his television personality name, Dr. Oz) was nominated by Trump to lead CMS. Dr. Oz first set his eye on politics in 2022 with an unsuccessful bid for Pennsylvania’s open Senate seat which was ultimately won by Senator John Fetterman (D-PA).

He notably is a major proponent of Medicare Advantage which is a critical program overseen by CMS. This privatized version of Medicare now insures 54% of Medicare enrollees. While Medicare Advantage boasts low premiums and oftentimes includes dental and vision coverage, it has come under scrutiny for upcoding (overbilling), an overreliance on prior authorization, and frequent care denials.

One of the key tenets of Dr. Oz’s run for US Senate was “Medicare Advantage for All”. In 2020, Dr. Oz co-authored a Forbes article proposing a plan to eliminate employer-sponsored health insurance and Affordable Care Act plans, enrolling the entire non-Medicaid population automatically into Medicare Advantage. This plan would be paid for by a 20% payroll tax. While opinions can change over the course of four years, this still provides interesting context into one of Dr. Oz’s more unique healthcare perspectives that could play a role in how he decides to run CMS.

Many Unknowns Remain

In conclusion, while these are the publicly known viewpoints of the nominees, it would not be surprising or unconventional for their views to shift to align more closely with those of the president if confirmed. Further clues on the direction of Trump’s health policy agenda will emerge during Kennedy’s and Oz’s Senate confirmation hearings and the first 100 days of Trump’s second presidency which begins on January 20th.

Top Stories in Healthcare Policy

The Urban Institute’s analysis on the implications of Affordable Care Act (ACA) subsidies expiring at the end of 2025 revealed that their expiration could leave 4 million people uninsured. The study notes that states that have not expanded Medicaid could experience some of the most significant increases in uninsured rates. 

The Internal Revenue Service (IRS) has expanded the list of preventative care benefits covered by high-deductible health plans. These changes, outlined in Notice 2024-71 and Notice 2024-75, includes coverage for non-mammogram breast cancer screenings, male condoms, over-the-counter contraceptives, continuous glucose monitors, and certain insulin products.

Elon Musk and Vivek Ramaswamy published an op-ed in the Wall Street Journal outlining their vision for the Department of Government Efficiency (DOGE). Their self-defined mission is threefold: “regulatory recissions, administrative reductions, and cost savings.” Their primary focus will be on actions that can be executed via executive action and do not require congressional approval.

The Commonwealth Fund’s 2024 Biennial Health Insurance Survey found that nearly a quarter of adults with health insurance were underinsured. The study highlights the negative impacts of such coverage gaps, showing that high costs cause many underinsured adults to delay care, resulting in worsened health problems