Democrats: It’s more of a health care fight than a shutdown | Semafor | October 2, 2025 Democrats are holding firm on the government shutdown, betting voters will remember their fight for health care costs rather than the shutdown itself, which has already lasted longer than the 2018 three-day standoff. Health systems face extended uncertainty as the political strategy means prolonged disruptions to federal services, grant processing, and public health programs beyond typical shutdown impacts.
Despite Budget Concerns, Three-Quarters of Public Say Congress Should Extend the Enhanced ACA Tax Credits Set to Expire Next Year | KFF | October 3, 2025 78% of the public, including most Republicans and MAGA supporters, want Congress to extend enhanced ACA tax credits for low and moderate-income individuals purchasing marketplace coverage, while 22% want them to expire. For health systems, the strong public support suggests potential political pressure to extend subsidies, which could prevent the enrollment disruptions and coverage losses expected when ACA open enrollment begins November 1st.
What the shutdown means for Medicare, Medicaid and other health programs | NBC News | October 2, 2025 Medicare and Medicaid will continue operating during the shutdown as mandatory programs covering 167 million Americans, but a pandemic-era telehealth benefit expired, cutting off home-based care access for many homebound seniors. Health systems will continue receiving payments though with possible delays, but face immediate operational impacts from lost telehealth reimbursement, forcing providers to see patients in person or risk unpaid care, plus potential enrollment disruptions if ACA subsidies aren’t extended.
Trump administration backs off 100% pharma tariffs threatened to start Oct. 1 | STAT | October 1, 2025 President Trump threatened pharmaceutical companies with 100% tariffs unless they built U.S. infrastructure, but the administration backed off the October 1st deadline and will now “begin preparing” tariffs for non-compliant companies without providing a new timeline. Health systems may benefit from potential drug price reductions as companies negotiate to avoid tariffs, but face planning challenges for pharmacy budgets and formulary management due to implementation uncertainty.
Trump orders $50M for AI in pediatric cancer research | Axios | September 30, 2025 President Trump signed an executive order doubling Childhood Cancer Data Initiative funding from $50 million to $100 million to accelerate AI-driven diagnostics, treatments, and prevention strategies using electronic health records and claims data. Health systems treating pediatric cancer patients may access expanded research funding and AI-driven clinical trial designs while being called upon to participate in data sharing efforts that require robust patient privacy protections.
Local health departments worry about government shutdown’s effects on staffing, disease outbreaks and nutrition services | CNN | October 2, 2025 State and local health departments face disruptions in CDC communications and disease surveillance during respiratory virus and hurricane season, with only 36% of CDC staff considered essential and the agency maintaining minimal capacity for outbreak response. Health systems face operational challenges with reduced federal support for disease surveillance at a vulnerable time, potentially delaying critical guidance during measles outbreaks, Ebola situations, or other emerging threats, while staffing challenges could delay vaccine policy implementation.
On the Horizon:
The Supreme Court will be back in session starting next week, two healthcare related cases to watch:
-
Chiles v. Salazar (docket 24-539) challenges Colorado’s ban on “conversion therapy” for minors — the case implicates professional regulation of therapists and the boundary between speech and medical/therapeutic practice.
-
Also, another case to watch is Kennedy v. Braidwood, involving challenges to the ACA’s preventive‐care mandate (specifically, about requiring insurers to cover PrEP, an HIV prevention drug) — this is a health policy / medical access case.