CMS Cuts Medicaid Guidance: A Wake-Up Call for Health Equity in Digital Health

Big news in digital health caught my eye, and it’s a game-changer we need to talk about. A March 5, 2025, Fierce Healthcare report revealed that the Centers for Medicare & Medicaid Services (CMS) has pulled back guidance on using Medicaid and CHIP Section 1115 waivers to address health-related social needs (HRSNs). As a recruiter in digital health and employee benefits, I’m seeing this as a critical moment for health equity—and it’s shaking things up in our space.

This guidance previously opened doors for states to fund vital services like housing support and food access—key to tackling social determinants of health (SDOH). Now, CMS will review waivers case-by-case, which could slam the brakes on these programs. This shift threatens to widen health disparities, especially as healthcare costs are already climbing 6-8% annually (Mercer, 2025).

Here’s why this matters: SDOH initiatives are a lifeline for patients, and I’ve seen their impact firsthand through the companies I work with. Digital health firms are stepping up but federal support is crucial. Meanwhile, employee benefits providers are under pressure to fill the void with private solutions, driving demand for leaders in health equity and HR tech. 

This rollback is a wake-up call for our industry. How is it impacting your approach to health equity in digital health or benefits?