U.S. drug development is heavily dependent on China — and Washington is not keeping up with the whole-of-government response many experts say is needed to change that.

Why it matters: The U.S. is being held back by vulnerabilities like fragile supply chains for generic drugs and the lack of a cutting-edge biotech infrastructure.

• A new Council on Foreign Relations report argues that while policymakers have become increasingly aware of U.S. dependence on China in pharmaceuticals, little has changed to alter the competitive dynamics.

Driving the news: The Department of Defense this week listed WuXi AppTec — a major drug development and manufacturing company — as a company associated with the Chinese military, making it subject to controls under a law Congress passed late last year.

• That could mean a U.S. biotech that contracts with WuXi to manufacture its product for clinical trials won't be able to receive federal funding for the effort, according to a Capstone analyst note.
• The listing of WuXi should incentivize biotechs to look outside of China for help sourcing ingredients and testing and manufacturing drugs.
• WuXi disputed its inclusion on the list.

House Select Committee on China Chair John Moolenaar (R-Mich.) recently introduced legislation that would require the Treasury Department to review U.S. pharmaceutical licensing deals, joint ventures and equity investments with Chinese companies.

• This would be the same scrutiny that's required for semiconductors, quantum information technology, and AI.

What they're saying: "We can't ban our way out of this problem," said CFR senior fellow Thomas Bollyky, one of the report's authors.

• "It really will need to be a combination of measures to improve U.S. innovative capacity in the biotech space combined with sensible security restrictions on Chinese firms," Bollyky said.
• "My worry is ... we will just look at ways of cutting off clinical trial data from China or precluding use of certain firms and call it a day," he added.

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New state data indicates that Affordable Care Act coverage losses may be steeper than expected due to the fallout from Congress' refusal to renew enhanced subsidies.

Why it matters: A rise in the uninsured rate could boost concerns about health costs in an election year where affordability is at the top of voters' minds.

Driving the news: Monthly enrollment data through April from Arkansas, Colorado, Maryland, Massachusetts, New Mexico and New York shows a significant number of people canceled their ACA coverage or didn't pay their premium bills after enrolling for 2026.

• Maryland saw a 13% enrollment drop, compared with 3% for a comparable period in 2025, Georgetown researchers Stacey Pogue and Sabrina Corlette wrote in a Commonwealth Fund blog post.
• Massachusetts experienced a 14% decline, compared with 6.7% last year. New Mexico experienced a more than 8% decrease, compared with 0.5% in 2025.
• "While a drop-off in this period is not unexpected, the magnitude of the decrease compared to last year is stark," Pogue and Corlette wrote.

Between the lines: Many people who wanted to keep insurance switched to a lower-coverage tier, notably from silver to bronze plans.

• But Pogue and Corlette noted these come with higher out-of-pocket costs even though the premiums are lower. This shift caused the average marketplace annual deductible to increase by $1,000 this year, to nearly $3,800.
• Analysts see overall 2026 marketplace enrollment falling by about 5 million this year, with more losses to come in 2027.

Medicare's benchmark trust fund is expected to run out of money in the first half of 2033, three months earlier than projected last year, program trustees said yesterday.

Why it matters: If lawmakers don't address the projected shortfall in a timely way, the program would only be able to pay 89% of Part A benefits.

• The hospital insurance trust fund is expected to post annual deficits starting next year and be depleted of reserves in the second quarter of 2033 without changes.

Where it stands: Both Medicare and Social Security's costs are expected to grow as the baby boomers retire and economic growth slows due to lower birth rates and less immigration.

• The Medicare outlook changed this year for reasons including tax cuts in last year's Republican budget bill that will bring in less money for benefits.
• Projected Medicare Part B costs for outpatient services were slightly lower than projected last year because of policy changes that reduced program payments for high-tech bandages known as skin substitutes.
• But Part D costs for prescription drugs were substantially higher than in last year's report, in part because of a big jump in the use of costly specialty drugs, trustees said.

Trump administration officials say the trust fund's life could be extended through efforts to crack down on fraud in the program.

Related: Social Security trust fund to fall short in 2032

The FDA yesterday added an active sunscreen ingredient popular in Europe and Asia to a list of permitted substances, marking the first update of over-the-counter sunscreen products since the late 1990s.

Why it matters: Medical experts say sunscreens in Europe currently offer better protection from ultraviolet radiation associated with skin cancer because of better testing methods.

Driving the news: Regulators added bemotrizinol to the list of permitted sunscreen active ingredients, following up on a proposal issued last year.

• The substance offers protection against both ultraviolet A and B rays and has low levels of absorption through the skin.
• The FDA regulates sunscreen as an over-the-counter drug, and international brands like those made in Korea had to be modified or reformulated to meet U.S. regulations.

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