Health Equity blog
Health equity is a pillar on which HLB was founded, and we have long been committed to the fight for equal access to health care.
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OUR HEALTH EQUITY CONTRIBUTORS
ICE Enforcement Activities are Impeding Immigrants from Seeking Necessary Medical Care
Health systems and physicians are reporting concerns that crackdowns by Immigration and Customs Enforcement (ICE), particularly in metropolitan areas, such as Minneapolis, are making immigrants afraid to leave their home. This fear has led to a significant increase in missed medical appointments and fewer vaccines administered to immigrant populations. Some providers are turning to telehealth and even in-home visits to provide necessary care. In a recent press conference held in Minnesota, physicians described instances of adults and children foregoing care, which can result in worse and costlier health outcomes. The American Medical Association (AMA) expressed serious concerns with ICE enforcement activities in and around hospitals, saying these actions are preventing immigrants from seeking vital medical care.
ACA Marketplace Lapses in Coverage Spell Financial Trouble for Many Hospitals
A new Fitch Ratings report foreshadows that many hospitals in states that did not expand Medicaid under the Affordable Care Act (ACA) will likely see a surge of uninsured patients. This is because, starting Jan. 1, 2026, enhanced premium tax credits expired, making Marketplace plans no longer financially feasible for such individuals. Limited Medicaid eligibility and lack of safety-net and other government subsidized backstop programs in many of these states is expected to exacerbate the problem.
Recent Study Found That More Than 25% of Medicaid Enrolled Physicians Never Saw a Single Medicaid Patient
A study published in Health Affairs found that a significant number of physicians enrolled in Medicaid never see a Medicaid patient – so-called “ghost” physicians. The research indicated participation in Medicaid varied widely by specialty. For example, more than 40% of psychiatrists were “ghost” physicians who saw no Medicaid enrollees in a given year, in contrast to primary care physicians, who were most likely to be high-volume “core” Medicaid participants. Other research has noted that Medicaid enrollees have a disproportionately higher need for mental health services compared to the overall patient population, which makes this statistic even more daunting.
CDC Delivers $82.5M in Funds to Strengthen Health Care Delivery to AI/AN Tribes
Entering into the third year of a 5-year cooperative agreement executed by the Centers for Disease Control and Prevention (CDC), American Indian and Alaska Native (AI/AN) tribes across the country have received $82.5 million in funding to strengthen the performance, quality, and infrastructure of their tribal public health systems. The funds enable recipient tribes to improve their capacity to implement, develop, and evaluate public health programs and services for their communities.
HHS Maintains Funds and Includes Health Extenders In New Spending Bill Legislation
On Feb. 3, the President signed into law a funding bill that largely left intact the Department of Health and Human Services’ (HHS) FY 2025 budget heading into FY 2026. Notably, the bill also included extensions for several expiring health care provisions including telehealth waivers, delay of Medicaid Disproportionate Share Hospital (DSH) cuts, extension of community health center funding, and the hospital at home program.
Recent Legal Developments in California for Gender-Affirming Care
On Jan. 2, the Department of Justice (DOJ) reached an agreement with families who sued over DOJ’s subpoena of medical and personal information for more than 3,000 pediatric patients seeking transgender care from Children’s Hospital Los Angeles. Under the agreement, the DOJ must provide advanced notice if it seeks these records prior to Feb. 1, 2029. Later in January, the California Attorney General (AG) filed a lawsuit against Rady Children’s Health located in San Diego, alleging that Rady violated its commitment to continue providing gender-affirming care to its pediatric patients through 2034. The agreement was one of the requirements the AG’s office placed upon Rady in approving its merger with Children’s Hospital of Orange County in Nov. 2024.
AI Chatbot Use Rapidly Increasing by Youth as a Mental Health Treatment Modality, Raising Safety Concerns
Adolescents and young adults are increasingly turning to AI chatbots in hopes of addressing their mental health issues. A recent study published in JAMA Network Open found that amid the ongoing youth mental health crisis – 13.1% of youths (≈ 5.4 million) relied upon generative AI for mental health advice. But such reliance on chatbots is concerning, particularly for youth with more critical and complex mental health needs, because, as the study noted, there is little benchmarking or insight into how the underlying models and algorithms are derived. Recent lawsuits claiming ChatGPT directly caused patients’ suicides highlight the controversy surrounding these largely untested approaches to self-help treatment.
Department of Veterans Affairs Bans Abortions
The Department of Justice (DOJ) released a memo on Dec. 18, 2025, that prohibited the Department of Veterans Affairs (VA) from providing any abortion services to veterans and their dependents, even those previously excluded from the VA abortion ban when their health is threatened by carrying a pregnancy to term or if the pregnancy is due to rape or incest. Subsequently, the VA allegedly issued its own internal memo, advising VA officials that it must comply with the DOJ policy. This is consistent with the VA’s Aug. 2025 proposed rule (which has not yet been finalized) to reinstate its full exclusion on abortions and abortion counseling from the VA’s medical benefits package. Until 2022, this exclusion was consistently in place since the VA first offered this medical benefits package in 1999.
Medicaid Working-Aged Adults Largely Spared from Financial Hardships Following Surgical Procedures
A recent study published in JAMA Surgery determined that, among working-aged adults, uninsured and privately insured patients face severe financial hardships following surgery, whereas Medicaid beneficiaries are largely shielded from these effects. These findings indicate that, without changes to improve financial risk protection, restrictive policies on Medicaid eligibility may increase financial hardship among working-aged surgical patients.
Minnesota in CMS’ Crosshairs Following Evidence of Widespread Medicaid Fraud, Waste, and Abuse
On Jan. 14, 2026, the Centers for Medicare & Medicaid Services (CMS) published a “notice of opportunity for hearing”, which would allow Minnesota representatives to appear before CMS to respond to its findings that Minnesota has fallen substantially out of compliance with federal Medicaid requirements due to numerous instances of fraud and waste, particularly among its social services offerings. CMS’ findings will be the basis for withholding federal financial participation from Minnesota’s Medicaid program, which will only end when Minnesota’s Medicaid agency implements an acceptable corrective action plan to bring its program integrity back into compliance with federal requirements concerning the identification, reporting, and investigation of suspected fraud.