HHS Secretary Announces Major Directional Shift in Federal Health Policy

The United States Secretary of Health and Human Services, Xavier Becerra, announced a significant shift in federally funded health programs to provide wellness care instead of an illness-care strategy in 2024. During his presentation of President Joe Biden’s proposed $1.8 trillion HHS budget to the House Ways and Means Committee on March 28, Becerra explained how “An illness-care system leaves our most vulnerable families behind. A wellness care system invests in providing the full spectrum of healthcare to all Americans.”

Wellness care aims to maintain good health through preventative measures, regular physical exams, cancer screenings, and encouraging healthy lifestyle habits, while illness care focuses on treating disease. Becerra stressed that wellness care is a more effective approach as opposed to illness care because the latter drives up prescription drug costs, causes unnecessary delays in receiving mental health care services, and can be financially burdensome to patients and their families.

The proposed 2024 wellness initiatives include investing $30 billion in pandemic preparedness to replenish the nation’s strategic national stockpile of medical supplies and equipment. There will be increased funding for Medicaid coverage, which extends to 2 million more adults, permanent Medicaid postpartum care, an additional $600 billion for childcare, and preschool programs, and $150 billion for Medicaid home and community-based services.

However, Republican members of the committee raised concerns over the accuracy of the proposal’s impact on senior adults, with Chairman Jason Smith (R-Mo.) questioning the Pay-As-You-Go Budget Rule (PAYGO) and its requirements for over $500 million in Medicare cuts to offset prior administration spending by the Biden administration, asking how the budget accounts for these cuts and how it would prevent them from taking place. Becerra responded by stating that the proposed budget would reduce the deficit without cutting Medicare over the long term.

The HHS Secretary also addressed the concern that the budget would increase premiums for Medicare Advantage plans, affecting 31 million people, disputed by Becerra. He explained that insurance companies could be cutting benefits for Medicare Advantage beneficiaries, which would enable them to prioritize their profits over the beneficiaries.