Kaiser Health News
Seeking Medicare Coverage for Weight Loss Drugs, Pharma Giant Courts Black Influencers
by Rachana Pradhan
Tue, 08 Aug 2023 09:00:00 +0000
Pharmaceutical giant Novo Nordisk has turned to influential Black Americans in pursuit of what would be a lucrative victory: having Medicare cover a new class of weight loss drugs, including the company’s highly sought Wegovy, which can cost patients more than $1,000 a month.
During a conference of the Congressional Black Caucus Foundation last fall — a jampacked gathering featuring prominent Black lawmakers and President Joe Biden — Novo Nordisk sponsored a panel discussion on obesity for which it selected the moderator and panelists, company spokesperson Nicole Ferreira said. The foundation is a nonprofit affiliated with the Congressional Black Caucus, a powerful group of lawmakers on Capitol Hill.
Former CNN political commentator Roland Martin moderated. Black health experts who support Medicare coverage of drugs used to treat obesity served on the panel. They included Fatima Cody Stanford, an associate professor of medicine at Harvard Medical School. Stanford is a specialist in obesity who has received consulting fees from Novo Nordisk.
During the panel discussion, Stanford told the audience that obesity “is a real disease that people struggle with,” she recounted in an interview with KFF Health News. “We’ve denied people care for obesity when we haven’t for other chronic diseases.”
Novo Nordisk, the leading maker of so-called obesity drugs, followed up on the September panel by sponsoring a streaming show in March hosted by Martin, during which guests advocated for Medicare to cover drugs for weight loss. Ferreira said the company suggested experts for the segment, but she did not name them.
Those activities are part of a broader Novo Nordisk campaign to shift the public narrative about obesity. They open a new window on drugmakers’ efforts to influence consumers and public policy.
Novo Nordisk is trying to reverse a 20-year-old ban on coverage of drugs used for weight loss under Medicare, the federal health insurance program primarily for people 65 and older. Congress excluded such medications when it established Medicare’s Part D prescription drug benefit in 2003. The ban effectively deprives drugmakers of millions of potential customers.
Expanding the Patient Pool
Medicare coverage would put obesity drugs within reach of many people who could not otherwise afford them. It could have a multiplier effect because private insurers often follow Medicare’s lead.
It would be a financial boon to Novo Nordisk and other drugmakers, including Eli Lilly, which is seeking FDA approval for a weight loss drug.
Adding to the cost, and the potential upside for the industry: To keep weight off, patients may have to take the drugs indefinitely.
Wegovy’s list price is about $1,350 for roughly a month’s supply. Eli Lilly’s Mounjaro, a drug for people with Type 2 diabetes that doctors prescribe off-label for obesity, is priced at about $1,023 for roughly a month’s supply.
Wegovy is FDA-approved for weight loss in adults who have a body mass index of 30 or greater — the definition of adult obesity, according to the Centers for Disease Control and Prevention — or a BMI of at least 27 plus at least one weight-related medical condition, such as hypertension. It’s also approved for patients as young as 12 who are deemed obese.
In a statement, Novo Nordisk spokesperson Allison Schneider said, “We advocate for patients and policies that support access to all obesity treatments, including coverage for anti-obesity medications in Medicare Part D.”
The company supports the Treat and Reduce Obesity Act, legislation introduced in 2013 that would overturn the Medicare coverage ban. In July, a bipartisan group of lawmakers in the House and Senate reintroduced the bill — something lawmakers have done repeatedly over the decade.
Drug companies have long used a variety of strategies to advance corporate interests, such as funding so-called patient advocacy groups focused on specific diseases and airing direct-to-consumer ads that spur patients to ask their doctors about brand-name drugs.
Novo Nordisk is the biggest corporate donor to the Obesity Action Coalition, which says its mission is “to elevate and empower those affected by obesity.”
Novo Nordisk contributes more than $500,000 annually to the group, according to its website. The group’s legislative objectives include reversing Medicare’s coverage ban on weight loss drugs.
The Obesity Action Coalition “is not influenced in any way by our vast array of supporters,” said Kendall Griffey, a spokesperson for the group.
Novo Nordisk has advertised Wegovy, which the FDA approved for weight loss in 2021, and Ozempic, which is approved for diabetes and prescribed off-label to treat obesity.
Like many large corporations, Novo Nordisk has contributed thousands of dollars annually to nonprofits tied to different groups of lawmakers while seeking support in Congress for its causes.
In 2021, Novo Nordisk gave between $100,000 and $399,999 to the Congressional Black Caucus Foundation and between $25,000 and $49,999 to the Asian Pacific American Institute for Congressional Studies, according to each nonprofit’s annual report.
The latter nonprofit, known as APAICS, is affiliated with the Congressional Asian Pacific American Caucus. APAICS lists Novo Nordisk as a partner on webpages for events in March and May where panel discussions touched on the treatment of obesity.
The Congressional Hispanic Caucus Institute also lists Novo Nordisk as a donor but doesn’t state how much the company contributed.
The Congressional Black Caucus, Congressional Hispanic Caucus, and Congressional Asian Pacific American Caucus back a bill on health disparities that in 2022 was revised to scrap Medicare’s prohibition on covering prescriptions for weight loss.
The Congressional Black Caucus Foundation, the Congressional Hispanic Caucus Institute, and the Asian Pacific American Institute for Congressional Studies did not respond to questions for this article. Novo Nordisk declined to say how much it contributed to the Congressional Black Caucus Foundation’s 2022 legislative conference and whether it sponsored the panel to influence Congressional Black Caucus members’ positions; it similarly declined to specify its most recent annual contribution to the Congressional Hispanic Caucus Institute and its financial contributions for various APAICS events this year. “We support multiple organizations to help educate on and highlight issues important to their communities,” company spokesperson Natalia Salomao said of Novo Nordisk’s relationship with the nonprofits.
High-Profile Promoters
Martin’s streaming daily news show in March featured an hourlong segment “powered by Novo Nordisk” on obesity among Black Americans. Ferreira, of Novo Nordisk, said Martin and Novo Nordisk “agreed that a segment on his show was a good opportunity to reach his audience to help further inform them about obesity as a chronic disease and the importance of good nutrition and health care.”
Martin did not respond to requests for comment. During the episode, he cited Novo Nordisk’s role. “I certainly want to thank them for partnering with us,” he said.
Guests pushed for Medicare to cover patients’ anti-obesity prescriptions, with an eye toward what coverage could mean for seniors and other adults. The federal government is “supposed to be leading the way on this,” Nelson Dunlap, vice president of public policy and external affairs for Meharry Medical College, a historically Black institution, said during the segment.
“Commercial insurances tend to follow what Medicare does,” Tiffani Bell Washington, a psychiatrist specializing in obesity medicine, said on the show. Obesity is “a health issue. So it really does need to be covered, and if Medicare covers it, usually other people follow.”
Dunlap declined to comment for this article, and Bell Washington did not answer questions sent by email.
Novo Nordisk enlisted Black music and entertainment stars Queen Latifah and Yvette Nicole Brown to be paid spokespeople for an educational campaign that began in 2021 communicating that obesity is a chronic disease and should be treated like other ailments. Both celebrities have openly talked about living with obesity.
Stanford, one of the participants in the September panel, in 2022 received $23,188 from Novo Nordisk, nearly double what she received from the company in 2021, federal records show. The 2022 payments include consulting fees and expenses for meals and travel.
“I wouldn’t want someone that has no knowledge informing them on how this actually works in real life,” Stanford said, explaining her relationship with the companies. “The people they learn from are people like me, the people that actually do this work on the ground every day with patients.”
Another panelist was Eric Griggs, an assistant vice president at Access Health Louisiana, a network of federally qualified health centers. In an interview, Griggs said Medicare coverage of obesity drugs “would help the solution. If you can help one group, you can help them all.”
According to the Centers for Disease Control and Prevention, based on BMI, 50% of non-Hispanic Black adults in the U.S. are classified as obese, the highest rate for any race or ethnicity.
However, the BMI measurement has increasingly come under criticism as flawed. In June, the American Medical Association said it “does not account for differences across race/ethnic groups, sexes, genders, and age-span.”
Since 2014, Novo Nordisk has spent more than $30 million lobbying members of Congress and other federal officials, according to a KFF Health News review of lobbying disclosures. A consistent subject is the Treat and Reduce Obesity Act.
“We have enormous health care challenges that flow from obesity,” said Sen. Tom Carper (D-Del.), a lead sponsor of that legislation. He argued that spending money on weight loss drugs would reduce spending on chronic diseases that drive up the federal government’s health care tab.
Carper is a longtime recipient of campaign cash from drug companies, including makers of weight loss drugs. However, some researchers express caution about lifting Medicare’s coverage ban. For seniors, the side effects of such drugs could be more dangerous, according to a paper by scholars at Vanderbilt University and the University of Chicago.
Side effects for Wegovy and Ozempic may include kidney problems, gallbladder disease, inflammation of the pancreas, and thyroid cancer, according to the product labels. Suicidal thoughts are listed as a potentially serious side effect of Wegovy, its label says.
The Vanderbilt and Chicago researchers found that, even with modest uptake of the medications, annual Medicare Part D expenses could increase by $13.6 billion. That could leave policymakers “in the position of making broad cuts to other types of care,” said Khrysta Baig, one of the paper’s authors.
But people who want Medicare and other insurance programs to cover the drugs emphasize potential advantages.
Coverage would save “the lives that we’re losing at early ages, especially in the Black community,” Bell Washington said on Martin’s show in March, before calling on viewers to take action. “You need to write to your legislators, make sure you’re choosing people who are in support of health care for all,” she said.
By: Rachana Pradhan
Title: Seeking Medicare Coverage for Weight Loss Drugs, Pharma Giant Courts Black Influencers
Sourced From: kffhealthnews.org/news/article/seeking-medicare-coverage-for-weight-loss-drugs-pharma-giant-courts-black-influencers/
Published Date: Tue, 08 Aug 2023 09:00:00 +0000
Kaiser Health News
Push To Move OB-GYN Exam Out of Texas Is Piece of AGs’ Broader Reproductive Rights Campaign
Democratic state attorneys general led by those from California, New York, and Massachusetts are pressuring medical professional groups to defend reproductive rights, including medication abortion, emergency abortions, and travel between states for health care in response to recent increases in the number of abortion bans.
The American Medical Association adopted a formal position June 9 recommending that medical certification exams be moved out of states with restrictive abortion policies or made virtual, after 20 attorneys general petitioned to protect physicians who fear legal repercussions because of their work. The petition focused on the American Board of Obstetrics and Gynecology’s certification exams in Dallas, and the subsequent AMA recommendation was hailed as a win for Democrats trying to regain ground after the fall of Roe v. Wade.
“It seems incremental, but there are so many things that go into expanding and maintaining access to care,” said Arneta Rogers, executive director of the Center on Reproductive Rights and Justice at the University of California-Berkeley’s law school. “We see AGs banding together, governors banding together, as advocates work on the ground. That feels somewhat more hopeful — that people are thinking about a coordinated strategy.”
Since the Supreme Court eliminated the constitutional right to an abortion in 2022, 16 states, including Texas, have implemented laws banning abortion almost entirely, and many of them impose criminal penalties on providers as well as options to sue doctors. More than 25 states restrict access to gender-affirming care for trans people, and six of them make it a felony to provide such care to youth.
That’s raised concern among some physicians who fear being charged if they go to those states, even if their home state offers protection to provide reproductive and gender-affirming health care.
Pointing to the recent fining and indictment of a physician in New York who allegedly provided abortion pills to a woman in Texas and a teen in Louisiana, a coalition of physicians wrote in a letter to the American Board of Obstetrics and Gynecology that “the limits of shield laws are tenuous” and that “Texas laws can affect physicians practicing outside of the state as well.”
The campaign was launched by several Democratic attorneys general, including Rob Bonta of California, Andrea Joy Campbell of Massachusetts, and Letitia James of New York, who each have established a reproductive rights unit as a bulwark for their state following the Dobbs decision.
“Reproductive health care and gender-affirming care providers should not have to risk their safety or freedom just to advance in their medical careers,” James said in a statement. “Forcing providers to travel to states that have declared war on reproductive freedom and LGBTQ+ rights is as unnecessary as it is dangerous.”
In their petition, the attorneys general included a letter from Joseph Ottolenghi, medical director at Choices Women’s Medical Center in New York City, who was denied his request to take the test remotely or outside of Texas. To be certified by the American Board of Obstetrics and Gynecology, physicians need to take the in-person exam at its testing facility in Dallas. The board completed construction of its new testing facility last year.
“As a New York practitioner, I have made every effort not to violate any other state’s laws, but the outer contours of these draconian laws have not been tested or clarified by the courts,” Ottolenghi wrote.
Rachel Rebouché, the dean of Temple University’s law school and a reproductive law scholar, said “putting the heft” of the attorneys general behind this effort helps build awareness and a “public reckoning” on behalf of providers. Separately, some doctors have urged medical conferences to boycott states with abortion bans.
Anti-abortion groups, however, see the campaign as forcing providers to conform to abortion-rights views. Donna Harrison, an OB-GYN and the director of research at the American Association of Pro-Life Obstetricians and Gynecologists, described the petition as an “attack not only on pro-life states but also on life-affirming medical professionals.”
Harrison said the “OB-GYN community consists of physicians with values that are as diverse as our nation’s state abortion laws,” and that this diversity “fosters a medical environment of debate and rigorous thought leading to advancements that ultimately serve our patients.”
The AMA’s new policy urges specialty medical boards to host exams in states without restrictive abortion laws, offer the tests remotely, or provide exemptions for physicians. However, the decision to implement any changes to the administration of these exams is up to those boards. There is no deadline for a decision to be made.
The OB-GYN board did not respond to requests for comment, but after the public petition from the attorneys general criticizing it for refusing exam accommodations, the board said that in-person exams conducted at its national center in Dallas “provide the most equitable, fair, secure, and standardized assessment.”
The OB-GYN board emphasized that Texas’ laws apply to doctors licensed in Texas and to medical care within Texas, specifically. And it noted that its exam dates are kept under wraps, and that there have been “no incidents of harm to candidates or examiners across thousands of in-person examinations.”
Democratic state prosecutors, however, warned in their petition that the “web of confusing and punitive state-based restrictions creates a legal minefield for medical providers.” Texas is among the states that have banned doctors from providing gender-affirming care to transgender youth, and it has reportedly made efforts to get records from medical facilities and professionals in other states who may have provided that type of care to Texans.
The Texas attorney general’s office did not respond to requests for comment.
States such as California and New York have laws to block doctors from being extradited under other states’ laws and to prevent sharing evidence against them. But instances that require leveraging these laws could still mean lengthy legal proceedings.
“We live in a moment where we’ve seen actions by executive bodies that don’t necessarily square with what we thought the rules provided,” Rebouché said.
This article was produced by KFF Health News, which publishes California Healthline, an editorially independent service of the California Health Care Foundation.
KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about KFF.
USE OUR CONTENT
This story can be republished for free (details).
KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about KFF.
Subscribe to KFF Health News’ free Morning Briefing.
This article first appeared on KFF Health News and is republished here under a Creative Commons license.
The post Push To Move OB-GYN Exam Out of Texas Is Piece of AGs’ Broader Reproductive Rights Campaign appeared first on kffhealthnews.org
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Center-Left
The article presents a viewpoint largely aligned with progressive and Democratic positions on reproductive rights and gender-affirming care. It highlights efforts led by Democratic attorneys general and the American Medical Association to protect abortion access and transgender healthcare amid restrictive state laws, portraying these actions positively. While it includes perspectives from anti-abortion advocates, their views are presented briefly and framed as opposition to the broader pro-choice initiatives. The overall tone and framing emphasize support for reproductive freedom and healthcare protections, reflecting a center-left leaning stance typical of mainstream health policy reporting sympathetic to Democratic policy goals.
Kaiser Health News
Federal Proposals Threaten Provider Taxes, Key Source of Medicaid Funding for States
Republican efforts to restrict taxes on hospitals, health plans, and other providers that states use to help fund their Medicaid programs could strip them of tens of billions of dollars. The move could shrink access to health care for some of the nation’s poorest and most vulnerable people, warn analysts, patient advocates, and Democratic political leaders.
No state has more to lose than California, whose Medicaid program, called Medi-Cal, covers nearly 15 million residents with low incomes and disabilities. That’s twice as many as New York and three times as many as Texas.
A proposed rule by the Centers for Medicare & Medicaid Services, echoed in the Republican House reconciliation bill as well as a more drastic Senate bill, would significantly curtail the federal dollars many states draw in matching funds from what are known as provider taxes. Although it’s unclear how much states could lose, the revenue up for grabs is big. For instance, California has netted an estimated $8.8 billion this fiscal year from its tax on managed care plans and took in about $5.9 billion last year from hospitals.
California Democrats are already facing a $12 billion deficit, and they have drawn political fire for scaling back some key health care policies, including full Medi-Cal coverage for immigrants without permanent legal status. And a loss of provider tax revenue could add billions to the current deficit, forcing state lawmakers to make even more unpopular cuts to Medi-Cal benefits.
“If Republicans move this extreme MAGA proposal forward, millions will lose coverage, hospitals will close, and safety nets could collapse under the weight,” Gov. Gavin Newsom, a Democrat, said in a statement, referring to President Donald Trump’s “Make America Great Again” movement.
The proposals are also a threat to Proposition 35, a ballot initiative California voters approved last November to make permanent the tax on managed care organizations, or MCOs, and dedicate some of its proceeds to raise the pay of doctors and other providers who treat Medi-Cal patients.
All states except Alaska have at least one provider tax on managed care plans, hospitals, nursing homes, emergency ground transportation, or other types of health care businesses. The federal government spends billions of dollars a year matching these taxes, which generally lead to more money for providers, helping them balance lower Medicaid reimbursement rates while allowing states to protect against economic downturns and budget constraints.
New York, Massachusetts, and Michigan would also be among the states hit hard by Republicans’ drive to scale back provider taxes, which allow states to boost their share of Medicaid spending to receive increased federal Medicaid funds.
In a May 12 statement announcing its proposed rule, CMS described a “loophole” as “money laundering,” and said California had financed coverage for over 1.6 million “illegal immigrants” with the proceeds from its MCO tax. CMS said its proposal would save more than $30 billion over five years.
“This proposed rule stops the shell game and ensures federal Medicaid dollars go where they’re needed most — to pay for health care for vulnerable Americans who rely on this program, not to plug state budget holes or bankroll benefits for noncitizens,” Mehmet Oz, the CMS administrator, said in the statement.
Medicaid allows coverage for noncitizens who are legally present and have been in the country for at least five years. And California uses state money to pay for almost all of the Medi-Cal coverage for immigrants who are not in the country legally.
California, New York, Michigan, and Massachusetts together account for more than 95% of the “federal taxpayer losses” from the loophole in provider taxes, CMS said. But nearly every state would feel some impact, especially under the provisions in the reconciliation bill, which are more restrictive than the CMS proposal.
None of it is a done deal. The CMS proposal, published May 15, has not been adopted yet, while the House and Senate bills must be negotiated into one and passed by both chambers of Congress. But the restrictions being contemplated would be far-reaching.
A report by Michigan’s Department of Health and Human Services, ordered by Democratic Gov. Gretchen Whitmer, found that a reduction of revenue from the state’s hospital tax could “destabilize hospital finances, particularly in rural and safety-net facilities, and increase the risk of service cuts or closures.” Losing revenue from the state’s MCO tax “would likely require substantial cuts, tax increases, or reductions in coverage and access to care,” it said.
CMS declined to respond to questions about its proposed rule.
The Republicans’ House-passed reconciliation bill, though not the CMS proposal, also prohibits any new provider taxes or increases to existing ones. The Senate version, released June 16, would gradually reduce the allowable amount of many provider taxes.
The American Hospital Association, which represents nearly 5,000 hospitals and health systems nationwide, said the proposed moratorium on new or increased provider taxes could force states “to make significant cuts to Medicaid to balance their budgets, including reducing eligibility, eliminating or limiting benefits, and reducing already low payment rates for providers.”
Because provider taxes draw matching federal dollars, Washington has a say in how they are implemented. And the Republicans who run the federal government are looking to spend far fewer of those dollars.
In California, the insurers that pay the MCO tax are reimbursed for the portion levied on their Medi-Cal enrollment. That helps explain why the tax rate on Medi-Cal enrollment is sharply higher than on commercial enrollment. Over 99% of the tax money the insurers pay comes from their Medi-Cal business, which means most of the state’s insurers get back almost all the tax they pay.
That imbalance, which CMS describes as a loophole, is one of the main things Republicans are trying to change. If either the CMS rule or the corresponding provisions in the House reconciliation bill were enacted, states would be required to levy provider taxes equally on Medicaid and commercial business to draw federal dollars.
California would likely be unable to raise the commercial rates to the level of the Medi-Cal ones, because state law constrains the legislature’s ability to do so. The only way to comply with the rule would be to lower the tax rate on Medi-Cal enrollment, which would sharply reduce revenue.
CMS has warned California and other states for years, including under the Biden administration, that it was considering significant changes to MCO and other provider taxes. Those warnings were never realized. But the risk may be greater this time, some observers say, because the effort to shrink provider taxes is embedded in both Republican reconciliation bills and intertwined with a broader Republican strategy — and set of proposals — to cut Medicaid spending by $800 billion or more.
“All of these proposals move in the same direction: fewer people enrolled, less generous Medicaid programs over time,” said Edwin Park, a research professor at Georgetown University’s McCourt School of Public Policy.
California’s MCO tax is expected to net California $13.9 billion over the next two fiscal years, according to January estimates. The state’s hospital tax is expected to bring in an estimated $9 billion this year, up sharply from last year, according to the Department of Health Care Services, which runs Medi-Cal.
Losing a significant slice of that revenue on top of other Medicaid cuts in the House reconciliation bill “all adds up to be potentially a super serious impact on Medi-Cal and the California state budget overall,” said Kayla Kitson, a senior policy fellow at the California Budget & Policy Center.
And it’s not only California that will feel the pain.
“All states are going to be hurt by this,” Park said.
This article was produced by KFF Health News, which publishes California Healthline, an editorially independent service of the California Health Care Foundation.
KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about KFF.
USE OUR CONTENT
This story can be republished for free (details).
KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about KFF.
Subscribe to KFF Health News’ free Morning Briefing.
This article first appeared on KFF Health News and is republished here under a Creative Commons license.
The post Federal Proposals Threaten Provider Taxes, Key Source of Medicaid Funding for States appeared first on kffhealthnews.org
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Center-Left
This article critically examines Republican proposals to limit provider taxes that fund Medicaid, emphasizing the potential negative impacts on vulnerable populations and state budgets, particularly in Democratic-led states like California. It highlights Democratic leaders’ concerns and quotes Democratic officials, framing the Republican efforts as harmful cuts. While it presents some Republican perspectives and justifications, the overall tone and focus favor a viewpoint aligned with expanding and protecting Medicaid funding, reflecting a center-left bias.
Kaiser Health News
Trump Team’s Reworking Delays Billions in Broadband Build-Out
Millions of Americans who have waited decades for fast internet connections will keep waiting after the Trump administration threw a $42 billion high-speed internet program into disarray.
The Commerce Department, which runs the massive Broadband Equity, Access, and Deployment Program, announced new rules in early June requiring states — some of which were ready to begin construction later this year — to solicit new bids from internet service providers.
The delay leaves millions of rural Americans stranded in places where health care is hard to access and telehealth is out of reach.
“This does monumental harm to rural America,” said Christopher Ali, a professor of telecommunications at Penn State.
The Biden-era program, known as BEAD, was hailed when created in 2021 as a national plan to bring fast internet to all, including millions in remote rural areas.
A yearlong KFF Health News investigation, with partner Gray Media’s InvestigateTV, found nearly 3 million people live in mostly rural counties that lack broadband as well as primary care and behavioral health care providers. In those same places, the analysis found, people live sicker and die earlier on average.
The program adopts a technology-neutral approach to “guarantee that American taxpayers obtain the greatest return on their broadband investment,” according to the June policy notice. The program previously prioritized the use of fiber-optic cable lines, but broadband experts like Ali said the new focus will make it easier for satellite-internet providers such as Elon Musk’s Starlink and Amazon’s Kuiper to win federal funds.
“We are going to connect rural America with technologies that cannot possibly meet the needs of the next generation of digital users,” Ali said. “They’re going to be missing out.”
Republicans have criticized BEAD for taking too long, and Commerce Secretary Howard Lutnick vowed in March to get rid of its “woke mandates.” The revamped “Benefit of the Bargain BEAD Program,” which was released with a fact sheet titled “Ending Biden’s Broadband Burdens,” includes eliminating some labor and employment requirements and obligations to perform climate analyses on projects.
The requirement for states to do a new round of bidding with internet service providers makes it unclear whether states will be able to connect high-speed internet to all homes, said Drew Garner, director of policy engagement at the Benton Institute for Broadband & Society.
Garner said the changes have caused “pure chaos” in state broadband offices. More than half the states have been knocked off their original timeline to deliver broadband to homes, he said.
The change also makes the program more competitive for satellite companies and wireless providers such as Verizon and T-Mobile, Garner said.
Garner analyzed in March what the possible increase in low-Earth-orbit satellites would mean for rural America. He found that fiber networks are generally more expensive to build but that satellites are more costly to maintain and “much more expensive” to consumers.
Commerce Secretary Lutnick said in a June release that the new direction of the program would be efficient and deliver high-speed internet “at the right price.” The National Telecommunications and Information Administration, the Commerce Department agency overseeing BEAD, declined to release a specific amount it hopes to save with the restructuring.
The NTIA also declined to respond on the record to questions about program revisions and delays.
More than 40 states had already begun selecting companies to provide high-speed internet and fill in gaps in underserved areas, according to an agency dashboard created to track state progress.
In late May, the website was altered and columns showing the states that had completed their work with federal regulators disappeared. Three states — Delaware, Louisiana, and Nevada — had reached the finish line and were waiting for the federal government to distribute funding.
The tracker, which KFF Health News saved in March, details the steps each state made in their years-long efforts to create location-based maps and bring high-speed internet to those missing service. West Virginia had completed selection of internet service providers and a leaked draft of its proposed plan shows the state was set to provide fiber connections to all homes and businesses.
Sen. Shelley Moore Capito (R-W.Va.) praised removal of some of the hurdles that delayed implementation and said she thought her state would not have to make very many changes to existing plans during a call with West Virginia reporters.
West Virginia’s broadband council has worked aggressively to expand in a state where 25% of counties lack high-speed internet and health providers, according to KFF Health News’ analysis.
In Lincoln County, West Virginia, Gary Vance owns 21 acres atop a steep ridge that has no internet connection. Vance, who sat in his yard enjoying the sun on a recent day, said he doesn’t want to wait any longer.
Vance said he has various medical conditions: high blood sugar, deteriorating bones, lung problems — “all kinds of crap.” He’s worried about his family’s inability to make a phone call or connect to the internet.
“You can’t call nobody to get out if something happens,” said Vance, who also lacks running water.
KFF Health News, using data from federal and academic sources, found more than 200 counties — with large swaths in the South, Appalachia, and the remote West — lack high-speed internet, behavioral health providers, and primary care doctors who serve low-income patients on Medicaid. On average, residents in those counties experienced higher rates of diabetes, obesity, chronically high blood pressure, and cardiovascular disease.
The gaps in telephone and internet services didn’t cause the higher rates of illness, but Ali said it does not help either.
Ali, who traveled rural America for his book “Farm Fresh Broadband: The Politics of Rural Connectivity,” said telehealth, education, banking, and the use of artificial intelligence all require fast download and upload speeds that cannot always be guaranteed with satellite or wireless technology.
It’s “the politics of good enough,” Ali said. “And that is always how we’ve treated rural America.”
Fiber-optic cables, installed underground or on poles, consistently provide broadband speeds that meet the Federal Communications Commission’s requirements for broadband download speed of 100 megabits per second and 20 Mbps upload speed. By contrast, a national speed analysis, performed by Ookla, a private research and analytics company, found that only 17.4% of Starlink satellite internet users nationwide consistently get those minimum speeds. The report also noted Starlink’s speeds were rising nationwide in the first three months of 2025.
In March, West Virginia’s Republican governor, Patrick Morrisey, announced plans to collaborate with the Trump administration on the new requirements.
Republican state Del. Dan Linville, who has been working with Morrisey’s office, said his goal is to eventually get fiber everywhere but said other opportunities could be available to get internet faster.
In May, the West Virginia Broadband Enhancement Council signaled it preferred fiber-optic cables to satellite for its residents and signed a unanimous resolution that noted “fiber connections offer the benefits of faster internet speeds, enhanced data security, and the increased reliability that is necessary to promote economic development and support emerging technologies.”
KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF—an independent source of health policy research, polling, and journalism. Learn more about KFF.
Subscribe to KFF Health News’ free Morning Briefing.
This article first appeared on KFF Health News and is republished here under a Creative Commons license.
The post Trump Team’s Reworking Delays Billions in Broadband Build-Out appeared first on kffhealthnews.org
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Center-Left
This article adopts a generally critical stance toward the Trump administration’s handling of the broadband program, emphasizing delays and negative consequences for rural communities. It highlights concerns from experts and advocates for fiber-optic technology, portraying the Biden-era BEAD program positively while critiquing the Trump-era restructuring as harmful to rural Americans. The tone and framing focus on social equity and government responsibility to underserved areas, which align with Center-Left perspectives prioritizing infrastructure investment and rural access. However, the article also presents viewpoints from Republican officials and notes bipartisan concerns, maintaining a level of balance overall.
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‘Out of balance:’ Seminole County sheriff asks for $16M more as county mulls tax hikes
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News from the South - Tennessee News Feed6 days ago
The impact of COVID vaccine changes
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News from the South - Georgia News Feed6 days ago
Bookman: Massive turnout for ‘No Kings’ protests in Georgia shows people’s courage to act
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Local News7 days ago
Juneteenth started with handbills proclaiming freedom. Here’s what they said
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News from the South - Missouri News Feed7 days ago
Is ‘The Life of Chuck’ the best movie of the year so far? Kathy Kaiser shares
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News from the South - Florida News Feed6 days ago
2 accused of street racing in Orange County crash that killed woman, FHP says