HHS Announces Major Reorganization and Reduction

April 9, 2025

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On March 27, the Department of Health and Human Services (HHS) announced it is restructuring in accordance with a recent executive order to reduce the size of the government’s workforce. HHS is reducing its workforce by about 10,000 full-time employees. When combined with previous HHS efforts, the restructuring results in the department downsizing from 82,000 workers to 62,000.

In addition to personnel cuts, HHS is centralizing functions and consolidating divisions to increase efficiency. This includes closing half of its regional offices; consolidating 28 divisions into 15, including a new Administration for a Healthy America; and centralizing Human Resources, Information Technology, Procurement, External Affairs, and Policy.

The Administration says the consolidation and cuts are designed to “improve Americans’ experience with HHS” and implement the Make America Healthy Again goal of ending the chronic disease epidemic. HHS said it will continue to look for ways to streamline its operations and agencies, although no additional cuts are currently planned.

In a statement following the HHS announcement, Sen. Ron Wyden (D-OR) said, “American families are going to be hurt by layoffs and closures of this magnitude, full stop… The chaos that is coming will guarantee that kids and seniors fall through the cracks with deadly consequences.”

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On July 23, AHIP President and CEO Mike Tuffin wrote an opinion piece in The New York Times saying, “common-sense bipartisan reforms are needed to promote competition in care delivery and prescription drugs, protect consumers from providers and drugmakers’ anticompetitive practices and transition away from the perverse incentives of fee-for-service medicine.” Tuffin notes that health […]
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Solutions

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PCMA recently submitted comments to HHS, DOL, and the Treasury (the Departments) in response to the proposed rule establishing a new category of limited excepted benefits for fertility services. PCMA supports the Departments’ goal of expanding access to fertility care while encouraging employer innovation but urged several targeted refinements to ensure the framework is operationally […]
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