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How cuts to Medicaid could affect healthcare workers.

We’re back! Last week, a group of activists put up a new website called Restored CDC, which is a copy of the Centers of Disease Control and Prevention’s website from before President Donald Trump took office on Jan. 20. The move comes in response to the presidential order to change or remove parts of federal sites, including information on vaccines, sexually transmitted diseases, and gender-affirming care.

In today’s edition:

💲 Medicaid on the chopping block

Brain stimulation trial begins

Roundup of new AI tools

—Maia Anderson, Cassie McGrath, Caroline Catherman

MEDICAID

House Majority Leader Steve Scalise (R-LA) (R), accompanied U.S. Speaker of the House Mike Johnson (R-LA) (L), holds up their budget resolution bill as he speaks during a news conference following a House Republican caucus meeting at the U.S. Capitol on February 25, 2025 in Washington, DC.

Andrew Harnik/Getty Images

Proposed Medicaid budget cuts could have a substantial effect on healthcare workers, experts say.

The House of Representatives on Feb. 25 adopted a budget resolution calling for the Energy and Commerce Committee, which oversees the federal insurance program, to slash a minimum of $880 billion from its budget over the next eight years as part of the Trump administration’s $4.5 trillion tax-cut plan.

While President Trump has said since taking office that he won’t cut Medicaid funding (barring any “fraud or abuse” the administration may find), analysts say doing so would be inevitable under the proposal. Even if the committee got rid of every other part of its budget, it would still need to reduce at least $600 billion from Medicaid to meet the $880 billion total, according to a New York Times analysis.

Total Medicaid spending was roughly $880 billion in 2023, with about $606 billion of that coming from the federal government, data from health policy research firm KFF shows.

Keep reading here.—MA

Presented by Calm

CLINICAL TRIALS

Split brain with brain stimulator device

Illustration: Anna Kim, Photos: Getty Images

Abbott’s newest Infinity deep brain stimulation (DBS) system trial has begun.

On March 5, the Icahn School of Medicine at Mount Sinai announced that the first patient had officially been implanted with Abbott’s DBS system for a multisite, randomized controlled trial of the device’s effects on treatment-resistant depression.

The trial will follow this patient and others for the next three years, according to a Mount Sinai press release. In total, it aims to recruit about 100 participants who haven’t responded to four or more antidepressant treatments, according to the clinical trials government site. Half will have their implants turned on and half will not, with the two groups compared after the first year.

DBS systems like Infinity are used to adjust abnormal activity in areas of the brain that impact Parkinson’s and essential tremor through targeted electrical signals. In 2022, the FDA gave Abbott breakthrough device designation to investigate whether its system can treat treatment-resistant depression this way, too. On Sept. 4, Abbott announced this new trial.

Keep reading here.—CC

ARTIFICIAL INTELLIGENCE

Healthcare Brew monthly series on AI Startups

Francis Scialabba

Welcome back to AI 411, a monthly roundup of artificial intelligence (AI) announcements from across the healthcare industry.

Some of the biggest healthcare AI news this month surrounds the ongoing lawsuit against UnitedHealth Group. The biggest healthcare company by revenue in the US is facing allegations that it used a flawed AI program and then denied treatment to some Medicare Advantage members who thought their care should be covered. This case could have major implications for payers who are looking to integrate AI to speed up the prior authorization process.

For now, here is your roundup of health-related AI news from February.

Abridge and Athenahealth. AI scribe maker Abridge and electronic medical records company Athenahealth announced a new partnership on Feb. 25. Under the agreement, Abridge’s note-taking technology was added to a new Athenahealth product called Ambient Notes and will be available in a limited release to 160,000 smaller and independent practices that use Athena’s products.

Keep reading here.—CM

Together With Calm

VITAL SIGNS

A laptop tracking vital signs is placed on rolling medical equipment.

Francis Scialabba

Today’s top healthcare reads.

Stat: 6.5%. That was the size of Mayo Clinic’s operating margin in 2024, with an operating income of $1.3 billion. (Becker’s Hospital CFO Report)

Quote: “Human safety and scientific integrity are immeasurably compromised by NIH’s slash-and-cap approach. The court is hard pressed to think of a loss more irreparable than the loss of a life, let alone the thousands of people who are counting on clinical trials as their last hope.”—US District Judge Angel Kelley after she extended the pause on cuts to NIH funding (the Washington Post)

Read: Missouri anti-abortion lawmakers proposed a bill that would allow many residents to avoid state income tax if they donate to pregnancy centers—four months after the state voted to legalize abortion. (ProPublica)

One healthy app: To support employees’ whole-person health, you’ve got to support their minds, too. Calm’s e-book explores how employers can use digital mental health apps to close care gaps + improve mental health. Here’s what to look for.*

*A message from our sponsor.

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