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| Illustration: Lazaro Gamio/Axios |
| The U.S. spent $5.3 trillion, or $15,474 per person, on health care in 2024 as demand for hospital care, prescription drugs and physician and clinical services surged, CMS wrote in a report Wednesday.
The big picture: It marked the second straight year in which health spending surged more than 7%, and brought health care’s share of the economy to 18%. Driving the news: The actuaries said the increased use of health care goods and services in 2024 was higher than many health insurers anticipated.
from Stat:
A speedy reversal of cuts to addiction, mental health programsThe Trump administration planned to cut nearly $2 billion from programs for treating opioid addiction, curbing homelessness, and other behavioral health services. Then, after an outcry from lawmakers and advocates, it reversed course, Lev Facher reports. The administration did not consult the Substance Abuse and Mental Health Services Administration, the agency that oversees mental health and addiction treatment, or announce the planned cuts internally. The administration had already cut about $2 billion from SAMHSA grants to states and cut more than half the agency’s staff. Read more. Following RFK Jr.’s advice to ignore his medical adviceThe health secretary said last year that people should not follow his medical advice. Doctors and hospitals agree, Daniel reports. Last week, the Trump administration cut the number of recommended pediatric vaccines, without so much as consulting Kennedy’s hand-picked advisers first. Kennedy said the changes are intended to restore trust in public health, but major health systems and clinicians plan to ignore the new federal guidelines, placing their trust instead in guidance from the American Academy of Pediatrics. Read more. Epic sues another health networkEHR giant Epic Systems on Tuesday sued health information network Health Gorilla and several of its users alleging fraud and breach of contract in a complex scheme to obtain hundreds of thousands medical records for purposes other than delivering medical care. Health Gorilla denied the allegations, and said that it worked to address Epic’s concerns since they came up three months ago. The company said it plans to defend itself. None of the other defendants responded to STAT’s request for comment. Though the suit is not directly connected to the ongoing legal battle between Epic and Particle Health, it shares an overlapping individual. Both cases hit on a fundamental tension between facilitating the easier access to patient data to enable health care and concerns that bad actors will abuse any window they can. Notably, both Epic and Health Gorilla have signed pledges to collaborate with each other as part of the CMS-led health technology ecosystem. Read Brittany Trang’s new story on the suit here Medical Devices Breakthrough updates, a pulse ox study, and moreMany medical device updates to discuss:
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