Healthy Returns: Medicaid cuts in Trump's megabill may affect some drugmakers more than others

Group 1 - The "One Big Beautiful Bill Act" includes over $1 trillion cuts to Medicaid, impacting millions of vulnerable Americans and threatening healthcare providers [2] - Medicaid represents a smaller portion of drugmakers' revenue in the U.S. and globally, with lower reimbursement rates compared to Medicare and commercial insurance [3][4] - Future revenue loss from Medicaid is considered a marginal negative for drugmakers, although some companies are more exposed to the Medicaid market than others [4] Group 2 - Vertex Pharmaceuticals and Gilead are more reliant on Medicaid, with Medicaid accounting for 25% of Vertex's U.S. revenue and 22% of Gilead's domestic sales [5] - Medicaid constitutes 23% of Vertex's sales from cystic fibrosis medicines, which are critical revenue drivers for the company [6]