Source: GlobalData
Trump presidency quickly impacting several areas of healthcare, says GlobalData
Posted in Medical Devices
US President Donald Trump has recently enacted several significant changes to the country’s healthcare policy, focusing on withdrawing from the World Health Organization (WHO), implementing anti-abortion measures, and initiating a freeze on federal grant funding. These actions have far-reaching implications for various aspects of the healthcare system, including Medicaid, according to GlobalData, a leading data and analytics company.
On January 20, 2025, Trump signed an executive order, directing the US to withdraw from the WHO. This decision marks the second attempt by the US to exit the WHO, following a similar move in 2020 that was later reversed by the subsequent administration.
The executive order criticizes the WHO’s handling of the COVID-19 pandemic and alleges political interference by member states. It mandates the cessation of US funding and support to the WHO, the recall of US government personnel working with the organization, and a review of alternative partners for global health initiatives. The withdrawal has prompted concerns from global health experts about potential disruptions in international health collaboration and the management of global health crises.
Alexandra Murdoch, Senior Medical Analyst at GlobalData, comments: “The US exit from the WHO is perplexing, and will not only leave a gap in WHO funding and health leadership, but will impact Americans health and safety too. The WHO funds a number of programs to treat and prevent many diseases in many countries, including the US.”
Exiting the WHO is not the only change to healthcare President Trump has made since his inauguration. On January 24, he issued an executive order titled “Enforcing the Hyde Amendment,” which reinforces the prohibition of federal funding for elective abortions. This order revokes previous directives from the Biden administration that had expanded access to reproductive healthcare services, including abortion.
By reinstating the Hyde Amendment’s restrictions, the order directs federal agencies to ensure compliance, effectively reducing federal support for abortion services. This move has significant implications for Medicaid, as it limits the use of federal funds for abortion services, potentially affecting low-income individuals who rely on Medicaid for healthcare coverage.
As a result of policies like this, many states could see an increased demand for contraceptive devices to reduce the likelihood of unwanted pregnancies. According to GlobalData, the volume of reversible contraceptive devices is expected to increase at a 2.53% CAGR in the US from 2023-33. Reversible contraceptive devices in this case refer to diaphragms, hormonal implants, and intrauterine devices (IUDs).
Murdoch continues: “Similarly, the Office of Management and Budget (OMB) issued a memorandum ordering a freeze on federal grants and financial assistance programs. This freeze has created uncertainty among organizations that depend on federal funding, including those providing healthcare services through Medicaid.”
A federal judge in the District of Columbia has temporarily blocked the order to freeze funding, but the order had already disrupted Medicaid for many. Medicaid reimbursement portals were down across the country, and if the freeze is reinstated, it could lead to reduced resources for programs that support low-income populations, potentially compromising the quality and availability of care provided through Medicaid.
Murdoch concludes: “President Trump’s recent actions represent a significant shift in US healthcare policy, emphasizing a departure from international health collaboration, reinforcing anti-abortion measures, and reevaluating funding priorities. These changes are likely to have substantial effects on healthcare in the US.”