Any up-to-date healthcare professional must stay informed in such a rapidly progressing environment. And 2025 has already brought a range of new developments influencing the future of this industry in the US. At Activate Health, we aim to help keep you up to date with current affairs, from leading health technology to new legislation. Here are some of the latest developments.
HEALTHCARE COSTS
Health spending issues to watch this year
Healthcare represents nearly one in every five dollars spent in the US economy, according to the Peterson KFF Health System Tracker. In both the public and private sectors, market factors continue to influence healthcare costs ranging from the rapid adoption of GLP-1s to federal policy changes affecting foreign aid and healthcare research, as well as state policy changes impacting PBM business practices.
Majority of benefits plan sponsors rank cost increases as top challenge in 2025
This marks the first time since 2019 that cost reduction has surpassed talent recruitment and retention. While more employers are focused on cost control, many remain cautious about making changes to their benefits programs. A small percentage are innovating; most, however, wait until a method is tried and tested before implementing changes.
HEALTHCARE DELIVERY
Cancer death rates declining, new report says, but diagnosis rates are on the rise for women
A new report from the National Cancer Institute (NCI) shows cancer rates in women are rising slightly, with the biggest increase in stomach cancer diagnoses. Breast cancer is also up, linked to obesity, alcohol, and the age at which someone gives birth for the first time. Black women face much higher death rates from breast and uterine cancers, partly due to unequal access to care. Healthy habits and regular screenings can help prevent and catch cancer early.
HEALTH SYSTEMS
Hacking, ransomware driving more healthcare data breaches
Hacking and IT incidents were responsible for 88% of exposed patient records in healthcare data breaches from 2010 to 2024, up from just 2% in 2010. Many healthcare organizations can be vulnerable, especially to ransomware, due to their limited cybersecurity resources and the severe consequences of care delays. In the last five years, ransomware attacks accounted for more than 50% of breaches. In 2024, this rose to 69%.
Catholic health systems warned of program closures, higher premiums resulting from Medicaid cuts
Leaders of health systems that make up the Catholic Health Association of the United States raised concerns about cuts to Medicaid, arguing they will restrict healthcare access for vulnerable communities. Executives from Providence and Trinity Health estimated losses of $1 billion for each health system, which would force labor reductions and cost shifts that could raise premiums for employers. To mitigate the loss of Medicaid revenue, health systems would need to renegotiate commercial insurance rates, potentially causing economic chaos and weakening healthcare overall.
HEALTH PLANS
Value-based care revenue expected to increase in 2025, survey respondents agree
More than 60% of healthcare leaders surveyed expect increased revenue from value-based care (VBC) arrangements in 2025. Findings also indicate that some organizations’ dependence on VBC programs continues to grow, and 30% of organizations report that at least a quarter of their revenue is tied to VBC contracts. Looking ahead, respondents believe operational, technological, and financial investments would support the expansion of value-based care.
Why member experience, healthcare costs are key for payers
To reduce costs while enhancing the member experience, healthcare payers must focus on maintaining customer trust, improving service quality, and lowering healthcare expenses. These goals could be aided by AI tools, specifically targeted to lower call center wait times and process past information and requests. To achieve these goals, it will be vital to implement other advancements, such as investing in digital health, cybersecurity, and value-based care.
Chronic disease prevention a pillar of new MAHA-ified CMS Innovation Center strategy
The CMS Innovation Center has announced a new strategy to “ensure Innovation Center models move program beneficiaries to accountable care arrangements, limit high utilization and ensure models are ‘fiscally sound.’” The strategy’s pillars—promoting evidence-based prevention, empowering individuals to reach health goals, and ensuring competition—are expected to benefit providers in rural areas and those in complex care and specialty populations. CMS also announced it will no longer seek to transition all Medicare beneficiaries to accountable care arrangements by 2030.
REGULATORY
How the Medicaid reconciliation bill could help wither away the Affordable Care Act
A recent Fierce Healthcare article discusses a potential decrease in ACA enrollment following the proposal of a new Medicaid bill. Experts warn that these cuts could reduce ACA enrollment by up to one-third in the next six months. Many new restrictions will create hurdles for low-income individuals looking for coverage.
Trump budget bill would modernize HSAs, incentivize shift to rebranded ICHRAs
A new proposed budget bill aims to increase the use of health savings accounts (HSAs), individual coverage health reimbursement arrangements (ICHRAs), and direct primary care (DPC) arrangements, where patients or an employer pays the physician directly. The bill also rebrands ICHRAs as Custom Health Option and Individual Care Expense (CHOICE) arrangements, which allow employees to use pretax dollars to pay for on-exchange marketplace premiums.
AMA: Congress moves health care in wrong direction
The latest bill signed by congress will reduce access to health care, causing many patients to avoid seeing doctors due to cuts to Medicaid and CHIP. An estimated 11.8 million people will lose insurance coverage. The American Medical Association (AMA) warns this will worsen public health and lead to more serious and costly health conditions.
HEALTH TECHNOLOGY
Reconciliation bill would ban enforcement of state AI laws for 10 years
The House Energy and Commerce Committee’s budget reconciliation bill proposes to ban states’ enforcement of AI laws and regulations for 10 years. This could overrule laws passed by Colorado and California concerning AI in healthcare. Industry advocates claim the enforcement ban will benefit small businesses and AI innovation.
Epic gains more ground in hospital EHR market share, widens its lead over Oracle Health: KLAS
Epic has significantly increased its share in the U.S. hospital EHR market in 2024. The company has added 176 hospitals and 29,399 beds and has raised its market share from 39.1% to 42.3%. In the same year, Oracle Health—previously Cerner—lost 74 hospitals and 17,232 beds.
PHARMA
AHA warns tariffs could worsen drug shortages, pushes for long-term reform
The AHA expresses concern that new tariffs could harm patient care and intensify drug shortages. Tariffs on medical devices, pharmaceuticals, and protective equipment could negatively affect the quality of care and raise healthcare costs. The AHA is calling on the Trump administration to exempt essential medical supplies as part of a broader effort to strengthen the pharmaceutical and medical device supply chain.
GLP-1 medications fuel $806B U.S. prescription drug spending spree
In 2024, U.S. prescription drug spending grew by 10.2% to almost $806 billion, a portion of which was caused by the increased use of GLP-1 drugs. These medications are rapidly growing in the market and have become the top drug category by spending. Looking ahead, overall drug spending is expected to rise by 9% to 11% in 2025. Increasing tariff costs on pharmaceutical ingredients could worsen drug shortages and force patients from generics to more expensive alternatives. Looking ahead, U.S. drug spending is projected to increase by between 9% and 11% in 2025, with clinic expenditures rising from 11% to 13% and hospital spending growing between 2% and 4%.
As the year progresses, keeping up with current events and market changes is vital. From rising costs to the increasing focus on AI and cybersecurity, these shifts reflect a rapidly changing landscape. If you have questions or are eager to stay ahead in your healthcare organization’s marketing and PR strategies, contact us to get started.