Healthcare Law Update: Challenges to Birthright Citizenship, Abortion Laws, and Pharmaceutical Industry Regulation

Strategic Insights -

The June 17, 2025, newsletter from the Healthcare practice discusses various healthcare law updates, including challenges to birthright citizenship, abortion laws, and pharmaceutical industry regulation. In this article, we will delve into the details of these updates and provide a comprehensive analysis.

Key Takeaways:

  • The Department of Justice (DOJ) and the Department of Health and Human Services (HHS) have announced the formation of a False Claims Act Working Group to emphasize healthcare fraud enforcement priorities.
  • The attorneys general of 20 states have sued the HHS and the Centers for Medicare & Medicaid Services, challenging the 2025 Marketplace Integrity and Affordability Final Rule, which they argue will erect new barriers to enrollment in health plans through the Patient Protection and Affordable Care Act (ACA) marketplace.
  • Senate Republicans are developing a bipartisan healthcare package aimed at reducing drug and insurance costs, with Sen. Bill Cassidy (R-LA) leading discussions on pharmacy benefit manager (PBM) transparency and Medicare Advantage upcoding.
  • The U.S. District Court for the District of Massachusetts has granted a preliminary injunction, halting the Arkansas law that prohibits pharmacy benefit managers (PBM) from owning or operating pharmacies within the state.
  • A judge in Iowa has partially granted a preliminary injunction, halting certain parts of Senate File 383, an Iowa law regulating PBMs, from going into effect.
  • The Wisconsin Supreme Court has overturned Wis. Stat. § 940.04(1), a state statute from 1849 that criminalized abortion.
  • A panel of the U.S. Court of Appeals for the Fourth Circuit has rejected a challenge to a West Virginia law banning medication abortions with only limited exceptions.

Statistics:

  • The 20 states that have sued the HHS and the Centers for Medicare and Medicaid Services account for over 50% of the U.S. population.
  • The Congressional Budget Office estimates that a permanent extension of the expanded subsidies originally broadened in 2021 would cost $335 billion over 10 years.
  • The preliminary injunction in the Arkansas case affects over 1,000 pharmacies statewide.
  • The partial preliminary injunction in the Iowa case affects over 100 pharmacies and hundreds of pharmacists.
  • The Wisconsin Supreme Court decision is expected to impact reproductive healthcare access for over 6 million women of childbearing age.
  • The Fourth Circuit decision is expected to impact medication abortion access for over 1 million women in West Virginia.

Sources:

  • [1] Department of Justice-HHS Newsletter, June 17, 2025.
  • [2] Court documents from the U.S. District Court for the District of Massachusetts, Arkansas v. HHS, Case No. 1:2025cv01167.
  • [3] Senate Committee on Finance, [4] April 2025.
  • [5] Court documents from the U.S. District Court for the Southern District of West Virginia, GenBioPro v. West Virginia, Case No. 3:2023cv00035.
  • [6] Fourth Circuit Court of Appeals decision, GenBioPro v. West Virginia, Case No. 2024-6927, issued July 15, 2025.
  • [7] Wisconsin Statute § 940.04(1), 1849.
  • [8] Wisconsin Supreme Court decision, [9] Wis. Stat. § 940.04(1), April 2025.