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Donald Trump is poised to appoint a leading healthcare industry lobbyist to a crucial budget role, in a potential blow to Robert F Kennedy Jr’s plan to shake up the sector, according to people familiar with the matter.
Don Dempsey, head of policy and research at lobbying group Better Medicare Alliance — funded by insurance giants including UnitedHealth Group and Humana — was the leading candidate to be Trump’s top health official at the US Office of Management and Budget, three people familiar with the matter said.
The potential appointment of Dempsey, who was also a lobbyist for healthcare company CVS Health and in the OMB during Trump’s first term, suggests that the new president may lean on more establishment figures to carry out his healthcare policy agenda, which would jar with Kennedy’s plans.
When Trump picked Kennedy to run the health department, he said the vaccine sceptic and environmental lawyer could “go wild” — comments that sparked alarm in Big Pharma.
But if he is appointed, Dempsey’s role as the OMB’s health programme associate director would give him sweeping power over the $1.8tn US healthcare budget and responsibilities of the 13 divisions and agencies.
Kennedy, who will be grilled by the Senate finance committee next Wednesday as part of his confirmation hearings on Capitol Hill, has outlined bold plans to refashion US public health institutions and reorient resources to tackle chronic disease as part of his “Make America Healthy Again” agenda.
Dempsey’s appointment could be announced in the coming days, the people said, although they cautioned that the timeline might shift or another candidate could emerge.
Earlier this week, Trump appointed two former officials from his first term — Theo Merkel and Joel Zinberg — to other key health roles within the executive branch.
OMB’s top health official role is likely to play an important part in hashing out how the government efficiency drive orchestrated by billionaire Elon Musk affects healthcare spending.
Dempsey’s employer the Better Medicare Alliance advocates for an alternative to the federal Medicare programme called the Medicare Advantage plans, which use managed-care companies to control costs and have proved hugely profitable for health insurers.
On Wednesday, Russell Vought, a prominent voice behind the Heritage Foundation’s Project 2025, testified in front of the US Senate as part of his confirmation hearings to lead the OMB.
The White House declined to comment. Dempsey did not immediately respond to a request for comment.
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