Axios Future of Health Care

April 04, 2025
Good morning. This week was a big one — let's get to it.
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Today's word count is 1,636, or a 6-minute read.
1 big thing: A surprise inflection point
Any question about whether HHS Secretary Robert F. Kennedy Jr. would enter office and fall in line with the status quo has been answered this week, and we're now watching the future of U.S. health care be reshaped by him, DOGE and the rest of the Trump administration in real time.
Why it matters: There are a lot of things the system gets wrong that can and should be fixed. But there are also a lot of things that it gets right, and voices from all corners of the health care world are warning that this week's massive changes to the federal health agencies could have disastrous consequences.
- It's been difficult to keep up with the flow of news stories detailing which agencies have been axed or which senior officials were laid off. Almost as numerous have been critical statements in response to the news, condemning the layoffs as chaotic and dangerous.
- Interest groups ranging from maternal health advocates to asthma and allergy advocates have warned of the cuts' consequences, reflecting just how much of the health care system could be impacted.
- There's also the minority of voices defending the cuts, saying they'll make HHS more efficient and ultimately lead to improvements in Americans' health.
The big picture: Instead of focusing on individual changes to the federal bureaucracy, I wanted to zoom out and look at the past week's news through the lens of this newsletter's original coverage themes.
- I chose the 10 themes because I felt they'll be the storylines that define what health care looks like in the future. For some of them, this past week may turn out to be an unanticipated inflection point.
Yes, but: Trying to game out the long-term impact of these changes requires humility. We're essentially trying to figure out what won't happen now that otherwise would have, and what will happen that wouldn't have without the cuts.
- Despite the overwhelmingly alarmed response, figuring out the real impact of the changes will take time.
- That being said, some impacts — like on tracking bird flu, for instance — could be felt much sooner.
What they're saying: "HHS is a sprawling bureaucracy that encompasses literally hundreds of departments, committees and other offices. ... Resulting pandemonium has injured American health and damaged department morale," Kennedy said of the overhaul.
- "We are going to streamline HHS to make our agency more efficient and more effective," he added.
What we're watching: Kennedy said yesterday that some of the cuts would be reversed, the WSJ reports.
- "Some programs that were cut, they're being reinstated," he said. "Personnel that should not have been cut were cut. We're reinstating them."
2. Medicine's precarious moment
This is what I wrote almost a year ago in one of the inaugural editions of this newsletter: "Extremely promising drugs are making their way onto the market, with more on the horizon, but we have no good way to pay for them all. ... We could be at an inflection point for how society manages people's health, presenting life-altering possibilities with crippling costs."
Where it stands: Perhaps the most-discussed downstream effects of both this week's cuts and earlier actions taken by the Trump administration are on the research, development, commercialization and regulation of new treatments and cures.
- The U.S. leads the world in pharmaceutical innovation. (We also lead the world in paying for that innovation, but that's not today's topic.)
- But that entire ecosystem is now threatened, experts say, starting from NIH research funding cuts and extending through the elimination of key positions within the FDA.
- In other words, forget the costs; some of those promising future treatments and cures may never make it to market now.
Between the lines: Doing world-class research that leads to game-changing new discoveries requires both money and talent.
- One of the biggest concerns about the Trump administration's cuts to science agencies and research funding halts is that they'll lead to brain drain, and prominent or promising researchers will simply head to other countries to do their work — or not come here in the first place. That's particularly notable amid the rapid rise of the biotech industry in China.
- But research is just the start of the process; the U.S. relies on private companies to pick up that research and take it through the development pipeline until it becomes a product that can be sold on the market.
- I've been told countless times while reporting other stories that pharmaceutical companies need a predictable and competent FDA in order to go through that process. Otherwise, it's a massively risky expense.
No single policy or personnel change (OK, except maybe the threat of pharma tariffs) has garnered the same level of attention and angst as the resignation of Peter Marks, a top FDA official who oversaw the agency's regulation of biological products.
- That includes vaccines and other treatments, like cell and gene therapies.
- Particularly concerning was the reason for Marks' departure, which he said came after "it has become clear that truth and transparency are not desired by the Secretary, but rather he wishes subservient confirmation of his misinformation and lies."
Another reportedly departing FDA official, Peter Stein, headed the office that would have approved the use of an experimental treatment for President Trump when he got COVID in 2020, former FDA commissioner David Kessler told Rachel Maddow this week. Kessler was also part of President Biden's COVID response team.
- "He could have died but for those drugs," Kessler said. "Someone needs to walk into the Oval Office and say, 'Mr. President, we just fired the person who may have saved your life.'"
- "We're less safe today because of these cuts that have happened for the last several days," he added. "I always thought that things were fixable. I am very concerned that if these cuts are not rescinded, these will [have an] effect for decades."
What they're saying: "I think that we are still living in a time of amazing promise of biomedical innovation to treat diseases that have been untreatable, to potentially prevent future pandemics, things like that," said Jesse Goodman, a Georgetown professor and a former top FDA official whose resume includes Marks' old job.
- "I do think what's going on now is eroding a system of innovation and creativity and practice that underlies those successes. So I'm very worried along the whole continuum," he added.
3. The fallout from public health cuts
Another huge theme that's emerged from the chaos this past week is the impact on public health initiatives and basic services provided by the federal government.
- I've never heard of some of the departments or programs that have been eliminated, let alone written about them. But that's because the beauty of public health is that on a good day, it's super routine and boring.
- The work operates in the background, much of it aimed at prevention or managing health and safety issues so that society can chug along less encumbered by them.
But occasionally — as we saw during the pandemic — public health becomes of utmost importance in the face of an emergency. And that's when most of us are grateful for that boring system having been maintained.
- We've lived our lives thus far mostly with the assumption that we have the tools — including effective vaccines — we need to protect us against the worst viruses, and that the federal government will at least be able to tell us about new pathogens and take action to protect us against them.
- The COVID pandemic may have rattled these assumptions, but even that much-criticized response benefited from the public health infrastructure that was already in place.
Where it stands: If the reduction or elimination of certain government health initiatives translate into worse health outcomes, that makes a huge difference within several of this newsletters' original themes:
- Patient access to care: In many ways, the patient experience has been getting worse. Some experts have warned the HHS cuts — within public health and beyond — will make finding coverage and care even harder for many patients.
- Aging: The problem isn't just that the U.S. population is getting older as a whole; it's that people are also living longer with chronic conditions, and future seniors may be even less healthy than today's. Cutting services that keep people healthy — or at least from becoming more sick — will probably only make this dynamic worse. And some services directly targeted at seniors have been cut.
- Health disparities: Any reduction in public health services will inevitably hit the most vulnerable Americans — who are disproportionately sick — hardest. And some of the departments hit hardest by the HHS cuts serve very at-risk populations, like HIV patients.
- Mental health and drug addiction: States are already suing the Trump administration over its clawback of billions in state funding, arguing that the funding reduction will reverse progress made on the opioid epidemic and threaten crisis intervention, suicide prevention and community-based mental health care.
What they're saying: "The firings will likely make it harder to get care and coverage," said Anthony Wright, executive director of Families USA. "These public servants are the people that enroll providers into Medicare, who deal with details and appeals, who approve the state changes in order to make Medicaid work on the ground. Cutting staff means these processes will be delayed, if not destroyed."
- "The cuts seem to be focused on our public health capacities to prevent disease in the first place," he added. "From reducing smoking and tobacco use to efforts to understand long COVID, cutting prevention is penny-wise and pound foolish."
The bottom line: Pandemic preparedness, infectious disease and biodefense haven't been major themes of this newsletter, but maybe they will be in this new era of the federal health system.
- Almost everyone agrees that the pandemic revealed that the country's health infrastructure needs improvement. But improvement and decimation are two different things.
Thanks to Nicholas Johnston, Adriel Bettelheim and Alison Snyder for editing and Matt Piper for copy editing.
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