Welcome to Nimitz Health — your go-to source for everything happening in health policy on Capitol Hill. Every week Congress is in session, subscribers get a fast, focused look ahead at key hearings, top industry news, and the biggest developments shaping healthcare. You’ll receive timely hearing readouts and breaking health policy alerts,. Plus, every in-session Monday, expect a briefing just like this one to kick off your week.

In this week’s Nimitz Health:

• Federal News: House Republicans unveil a sweeping Medicaid overhaul, Trump revives a controversial drug pricing policy, and HHS Secretary RFK Jr. prepares to defend deep agency cuts on Capitol Hill.

• State News: NewYork-Presbyterian lays off 1,000 employees and a coalition of state AGs sue CVS.

• Industry News: UnitedHealth faces a shareholder lawsuit over its handling of its CEO’s death.

WHO’S HAVING EVENTS THIS WEEK?

Tuesday, May 13th

• House Energy and Commerce Committee: “Full Committee Markup of Budget Reconciliation Text” at 2pm. Watch here. Click here to read the Health Subtitle and here for the section-by-section.

Wednesday, May 14th

• House Appropriations Committee: “Budget Hearing - U.S. Department of Health and Human Services” at 9:30am. Watch here. 

• Senate Finance Committee: “Trade in Critical Supply Chains” at 10am. Watch here. 

• Senate HELP Committee: “Hearing on Fiscal Year 2026 Department of Health and Human Services Budget” at 1:30pm. Watch here.

NEWS DRIVING THE WEEK

Federal News

House Republicans have unveiled a sweeping Medicaid overhaul that could push millions off coverage as they seek $880 billion in savings to fund President Trump’s broader policy agenda. The proposal introduces work requirements, tighter eligibility verification, a freeze on provider taxes, and restrictions on coverage for undocumented immigrants and gender-affirming care. Democrats and patient advocates warn the bill would devastate access to care, particularly for low-income adults, while Republicans argue it preserves the program for its original purpose.

These changes are set against the backdrop of President Trump’s newly released 2026 budget request, which proposes cutting discretionary HHS funding by 26%. The plan slashes nearly $18 billion from the NIH, eliminates key CDC programs, and guts minority health and mental health initiatives — while increasing funding for “Make America Healthy Again” wellness campaigns. 

Additionally, this morning, HHS and FDA launched a Request for Information (RFI) to identify and eliminate unnecessary regulations. In alignment with President Trump’s Executive Order, Secretary Kennedy has committed to a "10-to-1" deregulatory policy: for every new regulation proposed, at least ten existing regulatory actions will be rescinded.

Adding pressure to an already tense policy climate, Trump has also revived his “most favored nation” drug pricing plan via executive order. The policy ties U.S. drug prices to those paid in other high-income nations, potentially cutting costs by up to 80%. Drugmakers are warning of legal challenges and economic fallout, with some analysts projecting the industry could lose up to $1 trillion over the next decade.

On the Hill, Secretary Kennedy will appear before Congress tomorrow to defend the administration’s budget and address questions about HHS reorganization and agency staffing cuts. Expect sharp questioning on both healthcare access and vaccine oversight. Watch the House hearing here and the Senate hearing here.

State News

NewYork-Presbyterian Health System laid off 2% of its workforce — about 1,000 employees — amid mounting financial pressures and regulatory uncertainty. The cuts come just days after a $750 million settlement related to a sexual abuse case, and the system cited “macroeconomic realities” as the driver behind the decision. NYP joins other major health systems such as Mass General Brigham and Yale New Haven Health in trimming their workforces as hospitals across the country navigate ongoing cost and labor challenges.

In a separate development, attorneys general from Massachusetts, Connecticut, Oklahoma, and Indiana have filed a lawsuit against CVS Health, accusing the company of submitting fraudulent Medicaid claims by failing to report lower drug prices offered to the public through third-party discount programs like ScriptSave. The complaint alleges that since 2016, CVS has not disclosed these discounted prices as its "usual and customary" rates to state Medicaid programs, resulting in significant overpayments. The legal action could signal renewed scrutiny on pharmacy billing practices at the state level. Read more here.

Industry News

UnitedHealth is under legal fire from shareholders who allege the company misled investors about the business impact of the December shooting death of UnitedHealthcare CEO Brian Thompson. The suit claims UnitedHealth failed to disclose that it could no longer pursue aggressive cost-saving strategies due to public backlash, and that it reaffirmed unrealistic earnings guidance even as internal pressures mounted. The company has since lowered its profit forecast and lost over $150 billion in market value, with some analysts interpreting this as a shift in its approach to care denials.

FOR FUN

The Society of Health Policy Young Professionals is hosting a happy hour on the rooftop of TAKODA, Navy Yard on Thursday, May 15th from 6-8pm. It is free to attend, and snacks and drink tickets will be provided to attendees. Register here!

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