The U.S. Department of Health and Human Services plays a pivotal role in the nation’s healthcare framework. It is one of the largest federal agencies, with a broad mandate to enhance and protect the health of all Americans.
For healthcare professionals and government contracting executives, understanding HHS’s history, leadership, budget priorities and overarching structure is crucial for navigating industry trends and aligning with its initiatives. This comprehensive guide will provide a detailed breakdown of HHS to give GovCon professionals a clear understanding of its impact and operations.
Meet HHS leaders on Dec. 11 at the 2024 Healthcare Summit hosted by the Potomac Officers Club. Register now for the Healthcare Summit before tickets run out.
Table of Contents
History of the Department of Health and Human Services
Established in 1953 as the Department of Health, Education and Welfare, HHS emerged as a standalone department in 1979 following the creation of the Department of Education. Its mission has always been centered on improving public health, advancing biomedical research and delivering essential health and human services, particularly for vulnerable communities.
Over the decades, HHS has spearheaded many landmark initiatives, including the establishment of Medicare and Medicaid in 1965. Today, the department is at the forefront of addressing pressing healthcare challenges such as pandemic response, mental health care accessibility, health equity and chronic disease prevention.
Key Leaders of HHS
Effective leadership has always been crucial to HHS’s success. Below are some of the key officials integral to its strategic direction:
Xavier Becerra, Secretary of HHS
Xavier Becerra has served as the 25th HHS secretary since March 2021. In this role, he is the principal advisor to the president of the United States on all health-related matters.
Andrea Palm, Deputy Secretary of HHS
Andrea Palm plays a key role in policy implementation, overseeing the department’s day-to-day operations to ensure all HHS programs align with its mission.
Jennifer Wendel, HHS CIO
Former FBI leader Jennifer Wendel serves as CIO for HHS. Wendel previously served as deputy CIO and then acting CIO before being permanently elevated to the position in November 2024.
Hear Jennifer Wendel speak at the 2024 Healthcare Summit hosted by the Potomac Officers Club on Dec. 11! Secure your ticket to the Healthcare Summit while seats are still available.
Robert F. Kennedy Jr., potential incoming HHS Secretary
Chosen as HHS Secretary by President-elect Donald Trump in November 2024, Robert F. Kennedy Jr. could be tasked with leading the department through critical transformations. He has prioritized combating chronic diseases and addressing deceptive practices within the industrial food and drug sectors throughout his career.
HHS Budget Priorities for FY 2025
The HHS Fiscal Year 2025 budget reflects its commitment to modernization and transformation. With $1.7 trillion in mandatory budget authority and $130.7 billion in discretionary funding, the department plans significant investments in:
Expanding Coverage and Lowering Costs
Initiatives include lowering drug prices through enhanced Medicare negotiations, increasing Medicaid accessibility and modernizing health centers.
Research & Development
The NIH has requested $46.4 billion, with major funding for programs like Cancer Moonshot and studies addressing health disparities.
Customer Experience
Efforts are underway to improve accessibility, such as simplifying enrollment in federal healthcare programs and enhancing online tools like Medicare’s claims pages.
Agencies Under HHS
HHS comprises multiple agencies, each with distinct mandates to ensure public health and safety. Below are three major agencies under its umbrella:
Centers for Medicare & Medicaid Services (CMS)
With a staggering $1.6 trillion allocation in FY25, CMS oversees vital programs like Medicare, Medicaid and CHIP, serving as a lifeline for millions of Americans.
National Institutes of Health (NIH)
Dedicated to health research, the NIH’s 27 institutes drive progress in areas such as cancer prevention, AI integration in healthcare and maternal health.
Centers for Disease Control and Prevention (CDC)
The CDC’s $9.7 billion FY25 budget helps it combat infectious diseases, prepare for bioterrorism threats and address youth violence prevention.
Other integral agencies include the Indian Health Service, the Substance Abuse and Mental Health Services Administration and the Food and Drug Administration.
Recent HHS News
The HHS continues to make headlines with its ongoing advancements and initiatives. Here’s a quick recap of recent developments:
HHS Reorganization
In June 2024, HHS announced its plan to reorganize its cyber, data and artificial intelligence policy functions. As part of the reorg, HHS renamed the Office of the National Coordinator for Health Information Technology as the Assistant Secretary for Technology Policy and Office of the National Coordinator for Health IT, or ASTP/ONC.
AI Strategic Plan Coming Soon
According to HHS’ Acting Chief AI Officer Micky Tripathi, the agency expects to release a strategic plan to guide its AI activities in January 2025. Tripathi said the plan will look at areas in which AI can be useful to HHS, as well as boundaries that may be needed to guide the use of AI.
Organ Transplant IT System Cybersecurity
The HHS Office of the Inspector General recommended tighter cybersecurity measures for the organ transplant IT system in order to ensure the security and privacy of sensitive health data.
Meet HHS Leaders at the 2024 Healthcare Summit
With its significant budgetary investments, forward-thinking leadership and mission-driven goals, the Department of Health and Human Services is shaping the future of healthcare in America. Meet HHS leaders like CIO Jennifer Wendel at the Potomac Officers Club’s 2024 Healthcare Summit on Dec. 11! Register for the Healthcare Summit to save your seat.
