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Healthcare Today - February 28, 2025

         

Judge Rules OPM Probationary Firings Illegal: On Thursday, U.S. District Judge William Alsup ruled that the Office of Personnel Management broke the law when it ordered other federal agencies to terminate thousands of “probationary” employees. The judge said he could not bar agencies from dismissing probationary workers in the future, nor can he order the Administration to reinstate the furloughed employees. Thousands were part of government health service departments.  

Speaker Johnson Says Deep Medicaid Cuts Not on the Table: On Wednesday, after House Republicans passed a budget resolution requiring $2 trillion in U.S. government budget savings over the next ten years, Speaker Mike Johnson (R-LA) told CNN that House Republicans will “not cut benefits for people who rightly deserve them.” The passed resolution requires the House Energy and Commerce Committee to find at least $880 billion in savings from programs under its jurisdiction.  

White House Orders Agencies to Submit Lay-Off Plans: On Wednesday, OPM released a memo requiring Federal agencies to submit “large-scale reduction in force” plans that must “focus on the maximum elimination of functions that are not statutorily mandated.” The memo directs agencies to submit these “reorganization plans” by March 13.

Eli Lilly Pledges U.S. Manufacturing Investment: On Wednesday, drugmaker Eli Lilly said it will build four domestic sites to make key active ingredients for its products, citing Trump administration policies. Three of the factories will make active pharmaceutical ingredients while the fourth will manufacture injectable therapies. Commerce Secretary Howard Lutnick said Eli Lilly’s construction pledge “will revitalize America” and “articulates” the reasoning behind Trump’s tariff plans.

Senate HELP Committee Sets Makary Hearing: The Senate HELP Committee will hold a nomination hearing on March 6 for Dr. Marty Makary, President Trump’s FDA nominee. Several senators on both sides of the aisle have met with Makary in recent weeks.

Energy & Commerce Committee Holds PBM Hearing: On Wednesday, the House Energy & Commerce Subcommittee on Health held a hearing on PBM reform policy proposals, with Subcommittee Chair Buddy Carter (R-GA), Full Committee Chair Brett Guthrie (R-KY) and Democrat Ranking Members voicing intent to pass transparency and payment reform legislation. Subcommittee Chair Buddy Carter (R-GA) touted the language of his Protecting Patients Against PBM Abuses Act and Drug Price Transparency in Medicaid Act, while Democrats said these provisions would already be law if House Republicans had bucked Donald Trump and passed last December’s continuing resolution.

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