Robert Kennedy Jr., the elected American President Donald Trump's candidate for the Department of Health and Human Services, arrives on December 16, 2024 in the Senate of the Senate at Capitol Hill in Washington, USA.
Benoit Tessier | Reuters
When Robert F. Kennedy Jr. faces the Senate two days after the Senate confirmation hearing in order to become a secretary for health and human services, a niche group of startups will be observed closely.
Kennedy, a split choice for President Donald Trump's cabinet, will initially go before the Senate finance committee on Wednesday. As HHS secretary, he would monitor a budget of more than 2 trillion dollars and cover everything from drug research and approval to Medicare and Medicaid Health Programs.
Kennedy's skepticism about vaccines and submissions that show that he benefits from anti-accine lawsuits will probably be a central survey area. Both sides of the political gait have criticized the candidate for his attitude.
Kennedy has undertaken to produce nutritious food and drugs that aim to combat chronic diseases in the United States as a republican on the Federal Medicaid program for financing cuts dealt with “Make America HaaRT” will increase the sector of food and medicine Keep growing programs from the wooden block block of the Trump government.
“I actually think that everyone indicates that this administration will finally look at the reasons … why individuals are as sick as they” -Up, which works with Medicaid and Medicare Advantage, plans to provide nutritious food sacrifices to include patients to improve their health states.
Since obesity and type -2 -diabetes rates in the USA are increasing, state Medicaid programs have tried to provide active nutritional advice to help members combat chronic conditions, as well as large employers and commercial insurance plans in the last ten Years.
During the first Trump administration, the Ministry of Health and Human Services spurred states to satisfy social needs such as nutritional uncertainty and health differences. A handful of states received a so -called exception of 1115 Medicaid demonstrations in order to provide nutritional programs as a form of preventive care – which on the way has greater investments in the room.
In the past four years, more than four dozen companies with food from venture capital companies, including Khosla Ventures and Andreessen Horowitz, have collected over $ 2 billion together with health players such as Khosla Ventures CVS healthAfter data tracking by Rock Health Advisory.
The financing of offers for food-as-medical offers exceeded $ 483 million in 2024, an increase of 175% compared to the previous year. In one of the biggest offers of the year, the telenutrition start -up Foodsmart secured 200 million US dollars of risk -loving financing, which were led by the TPG promotion fund.
Kennedy now see food-as-medical companies as potential allies.
In an interview with NPR, Kennedy said that Trump gave him “three instructions” about his role as HHS secretary: End corruption and conflicts in the supervisory authorities, which health authorities return to the “gold standard” of evidence-based science and tackle chronic illnesses.
“He wants to end the epidemic of chronic diseases with measurable effects on a reduction in chronic diseases within two years,” said Kennedy.
Robert Kennedy Jr., the elected American President Donald Trump's candidate for the management of the Ministry of Health and Human Services, goes through the Senate's office building of Dirksen between the sessions with senators on the Capitol Hill in Washington, USA, on the 17th. December 2024.
Benoit Tessier | Reuters
Growth of food programs in Medicaid
The demand for food and nutritional programs has increased significantly in the past five years, with 20 states and Washington, DC being approved for exceptional regulations until the end of the bidges, according to the Centers for Medicare and Medicaid Services. This has contributed to promoting the growth of startups that concentrate on the fulfillment of government health plans.
“There are much more interest from payers when it comes to the way they can improve food interventions for both the life of the patient and then reduce the costs” by Walmart Erbe Lukas Walton.
S2G has financed five startups for food as medicine, including Nourishdrx, a five-year-old company for digital nutrition that combines food deliveries with health coaching for patients in medicaid and medical plans.
“To really help the people who need it the most, those who are socially vulnerable, nutritional uncertainty, who also have a nutritional disease, we had to work through [government] Payers, “said Lauren Driscoll, founder and CEO of Nourishedrx, and added that it had time to build dynamics.
“We had to make pilots and drive away evidence, and now we are recurring in recurring income, renewable and expanding contracts,” she said.
Get a point of bowel
Kennedy's support for the focus on diet and not medicine for the treatment of chronic diseases can only promote the enthusiasm of investors for the growing space.
“Suggestions from the incoming HHS administration to expand the cover of healthy food and nutritional services as medical advantages and the increase in research financing for medical nutrition should continue to advance the enthusiasm of investors in the room,” said Chris LEW, a director of the Rock Health Consulting team.
The CEO of Foodsmart, Dr. Jason Langheier said that the high costs of diabetes and weight loss medication help to fuel the interest in food programs, as well as Medicaid declarations of reference and political initiatives that have increased the insurance of nutritional aids.
“Food providers will now … have an opportunity to work with the state, create a program that distinguishes a return on investment for the state and health plans to actually help people on the size – especially because of the pressure For their expenses for GLP-1, which has grown to astronomical level, “said Langheier.
In a pharmacy in London, Great Britain, on March 8, 2024, boxes with Wegovy from Novo Nordisk can be seen.
Hollie Adams | Reuters
At the end of November the administration of bids proposed Novo Nordisk's Wegovy and Eli Lilly'S Zepbound on Medicaid and Medicare patients.
If confirmed confirmed, Kennedy will probably object to the GLP-1 coverage due to his voice criticism of the expensive medication for weight loss. The proposal will probably also be a non -starter for the Trump administration, since the estimates of the congress budget from 2026 to 2034 would be 35 billion dollars.
Regardless of whether Kennedy is confirmed or not, Krishnan from S2G said that the United States will go to a fiscal billing over health expenditure, and food programs can play a crucial role by reducing avoidable diseases.
“We will have a real kind of conversation about health care and how we achieve ideal results for patients, but also not the entire budget or a significant part of the US budget that focuses on health care,” he said.
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