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According to new estimates from the Congressional Budget Office (CBO), the Medicare Trust Fund is expected to run out of funds by 2040, 12 years sooner than previously projected, in today's bite-sized hospital and health industry news from California, the District of Columbia, and New Jersey.
- California: Hims & Hers has agreed to acquire digital health company Eucalyptus for $1.15 billion. Under the deal, Hims will pay $240 million in cash upon closing. The remaining funds will be guaranteed deferred payments over the 18 months following closing. Additional payments may also be made if certain financial targets are met through early 2029. According to Hims, the acquisition will help the company grow its presence in the United Kingdom, Germany, and Canada as well as enter the market in Australia and Japan. "Hims & Hers plans to expand its bench of local expertise and scale its infrastructure, making it possible for the company to reach millions more people globally with the model it has successfully built — and continues to maintain — in the U.S.," the company said. After the deal is finalized, Eucalyptus CEO Tim Doyle will oversee Hims' international business. (Miller, Wall Street Journal, 2/19)
- District of Columbia: According to new CBO estimates, the Medicare Trust Fund is expected to run out of money by 2040. In a blog post, CBO wrote that the trust fund's balance will grow each year through 2031, but after that, spending will outpace revenue, and funds will run out by 2040. This latest projection is 12 years sooner than the one CBO made last year, which estimated that the Medicare Trust Fund would be solvent until 2052. According to CBO, changes in the One Big Beautiful Bill Act, lower revenue from payroll taxes, and accelerating medical costs all contributed to the new, earlier projection for the trust fund's insolvency. "Those changes are driven largely by projections of less income to the fund," CBO wrote. "Projections of greater spending also contribute to the changes." (Minemyer, Fierce Healthcare, 2/24)
- New Jersey: Quest Diagnostics is launching a new AI chatbot to help patients understand their laboratory test results. According to Quest, the chatbot can analyze up to five years of data from patients' labs to "help explain results and uncover potential health risks." The chatbot is powered by Google's Gemini family of AI models and was developed through Quest's partnership with Google Cloud. "Patients often tell us they want help simplifying and understanding their test results and what the results communicate about their health," said Nicole Antonson, Quest's VP of digital solutions and interoperability. "Now, Quest AI Companion builds on this history and empowers patients to analyze their results and spot trends they can discuss with their healthcare provider, for smarter and simpler testing that illuminates a path to better health." (Adams, Fierce Healthcare, 3/2)
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