Happy Monday! The health sector is bracing for major shifts as the Trump administration’s megabill begins to take effect. From deep Medicaid cuts and immigrant coverage rollbacks to rising care costs and renewed outbreaks, this week’s headlines reflect political, legal, and operational disruption.

In this week’s Nimitz Health:

• Federal News: Medicaid slashed, HHS sued over data removals, and RFK Jr. criticized amid measles surge.

• State News: NC faces 900K coverage losses, Tillis won’t seek re-election, and blue states fight subsidy cuts

• Industry News: The commercial insurance sector faces mounting strain amid surging patient care costs.

WHO’S HAVING EVENTS THIS WEEK?

Wednesday, July 9th

• *Senate HELP: “Nomination of Susan Monarez to be Director of the CDC” at 9:45am. Watch here.

• *Senate Appropriations: “Hearings to examine a future without Type 1 Diabetes, focusing on accelerating breakthroughs and creating hope” at 10am. Watch here.

• *Senate HELP: “Hearings to examine securing the future of health care, focusing on enhancing cybersecurity and protecting Americans' privacy” at 10am. Watch here.

Thursday, July 10th

• Senate Appropriations: Business meeting to markup several bills including the the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act at 9:30am. Watch here.

*Will be covered by Nimitz Health. Please email [email protected] if you would like a readout of any other hearings.

NEWS DRIVING THE WEEK

Federal News

The Trump administration’s newly passed megabill is already reshaping the healthcare landscape. It includes sweeping safety-net rollbacks and a sunset for popular tax deductions in 2028–2029, setting up years of political warfare. Most controversially, the bill slashes Medicaid by nearly $1 trillion and imposes strict work requirements, a move expected to kick 12 million Americans off coverage by 2034. Democrats are vowing to center the cuts in their 2026 campaigns, while only a few Republicans broke ranks to oppose the bill.

Planned Parenthood confirmed it will sue the Trump administration over the bill’s provision disqualifying organizations that perform abortions from Medicaid reimbursement—even for non-abortion services. The organization warned that the measure could shut down clinics in 24 states, where they are often the only Medicaid provider for reproductive or preventive care.

HHS is also facing legal trouble. A federal judge ruled that HHS unlawfully removed dozens of webpages related to youth health and HIV under the guise of combatting “gender ideology,” ordering them reinstated.

Meanwhile, the nation is experiencing the worst measles outbreak in 33 years, with at least 1,277 cases across 38 states and DC. The largest cluster is in West Texas, where anti-vaccine sentiment and gaps in public health infrastructure allowed the disease to spread rapidly. The outbreak has coincided with federal funding cuts to local immunization programs, leaving many jurisdictions understaffed. HHS Secretary Robert F. Kennedy Jr. has been criticized for downplaying the outbreak and offering mixed messaging on vaccine safety.

State News

North Carolina is a focal point of Medicaid fallout. More than 900,000 residents stand to lose coverage, jeopardizing the state’s recent expansion and the Healthy Opportunities pilot that funded housing, food, and transportation as health interventions. Hospital systems anticipate margin pressure, especially in rural markets. NC Republicans, including Sen. Thom Tillis, have broken ranks to oppose the federal rollback’s local effects. Simultaneously, Sen. Tillis announced he will not be seeking re-election.

Elsewhere, states like New York, California, and Illinois are preparing for the financial fallout. Democratic governors are launching aggressive campaigns blaming Republicans for the Medicaid shortfalls and immigrant coverage rollbacks, even as they brace for rising uncompensated care burdens. In particular, states with large legal immigrant populations are being forced to confront the end of federal premium subsidies for groups such as refugees and green card holders.

Industry News

The commercial health insurance sector is under pressure as patient care costs soar. Last week, Centene’s stock plunged nearly 40% after the company reported higher-than-expected utilization in Medicaid and ACA exchange plans. The rise was especially notable in behavioral and home-based care services. Other publicly traded insurers, including Oscar Health and Elevance, also saw declines. Analysts warn that the trend may point to sustained structural cost increases rather than short-term fluctuation.

FOR FUN

Florida man breaks Del Taco window after he's denied tacos at closing time. If you are in need of a good laugh, see more Florida man headlines here.

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