Business
Column: Healthcare — and not just reproductive care — was on the ballot, and it lost big
It was perhaps natural that campaign coverage of the presidential candidates’ healthcare policies began and ended with abortion rights; since June 2022, when the Supreme Court overturned Roe v. Wade, 20 states have banned abortions or enacted draconian restrictions on the procedure.
That landscape could turn even more dire with the reelection of Donald Trump. But many other healthcare issues were implicitly on the ballot Tuesday. Republicans may well feel empowered to continue their long campaign against the nation’s public health infrastructure, to step up their attacks on science, and to spread the anti-vaccine mantra of Robert F. Kennedy Jr., who has worked his way into Trump’s inner circle.
The Biden administration’s progress in making healthcare more accessible and affordable for all Americans, especially seniors on Medicare, is almost certain to be rolled back. RFK Jr. and other healthcare quacks, such as Florida Surgeon General Joseph Ladapo, may move into national policy-making. Religion-based policies may move to the fore, shouldering science-based policies aside. The plundering of healthcare institutions by private equity investors could pick up steam.
I will not give one penny to any school that has a vaccine mandate or a mask mandate.
— Donald Trump, threatening millions of children with measles, polio, COVID and other vaccine-preventable diseases
If any of these eventualities come to pass, America’s health profile will be in danger of declining, and sharply. The main victims would be women, seniors and low-income households.
Let’s examine the particulars. Some of these derive from the Heritage Foundation’s notorious Project 2025, a road map to a reactionary future that is sure to animate many Trump administration policies. But others reflect policy efforts already tried in red states or promoted during Trump’s first term.
ABORTION: Protections for abortion rights were on the ballot in 10 states, and passed in seven — not including Florida, where a measure rolling back the state’s draconian abortion ban garnered 57% of the vote but fell short of the 60% required to pass. (That threshold was enacted in 2006 after it was placed on the ballot by a Republican-controlled legislature; as it happens, the 60% rule passed even though it did not itself garner 60% of the vote.)
In only two other states is a supermajority required to pass a ballot measure: Colorado (55% required) and New Hampshire (two-thirds, or 66.7%).
The seven states in which voters protected abortion rights by enshrining them in the state constitution were Arizona, Colorado, Maryland, Missouri, Montana, New York and Nevada. Measures failed in South Dakota and Nebraska.
Republican and conservative hostility to abortion rights has persisted despite the ghastly deaths of pregnant women because doctors were unwilling to terminate their pregnancies because the treatment would break the law in their states, even in an emergency, and expose the doctors to consequences including criminal prosecution.
Trump has specifically said he would not support a national abortion ban “under any circumstances,” but that leaves open a multitude of ways he could achieve that goal by another name, whether by applying an ancient federal law to constrain the shipment of abortion pills, installing reproductive rights opponents at federal healthcare agencies as he did in his first term, or some other means. Plainly, abortion rights aren’t safe in a Trump presidency.
GENDER: Trump made gender-related medical treatments a target of his campaign, spinning a deranged fantasy about schools subjecting children to gender-changing surgery behind their parents’ backs; Project 2025 disdains what it calls “the new woke gender ideology, which has as a principal tenet ‘gender affirming care’ and ‘sex-change’ surgeries on minors.”
This parallels laws passed in several red states barring any gender-affirming care for minors. In fact, surgery is not part of the standard of care in gender-affirming cases involving children and adolescents. The authors of Project 2025 advocate barring transgender individuals from serving in the military.
AFFORDABLE CARE ACT: The repeal of Obamacare, as it’s familiarly known, has been a prime goal of Republicans since the law’s enactment in 2010. The law was saved from repeal in 2017, during the last Trump administration, by a single “no” vote from the late Sen. John McCain (R-Ariz.).
It’s still a target. House Speaker Mike Johnson (R-La.) vowed last month that there would be “No Obamacare” in another Trump term. The law is popular, however, favored by 62% of Americans according to a KFF opinion poll in May. Trump has repeatedly promised to offer an alternative program, but never has done so.
Project 2025 calls for giving more latitude to bare-bones health plans such as association health plans and short-term health plans. These don’t meet ACA standards because they often exclude essential healthcare services and can mislead consumers into thinking an illness or treatment is covered — learning the truth only when they try to obtain coverage.
The road map also calls for curtailing the ACA’s contraceptive mandate, which it says “has been the source of years of egregious attacks on many Americans’ religious and moral beliefs.” (Of course, the ACA doesn’t require that anyone actually use a contraceptive, only that they be covered without cost-sharing.)
It calls for removing the “morning-after pill” Ella from the contraceptive mandate. It also calls for turning the clock back on the Food and Drug Administration’s safety approval for the abortion pill mifepristone, which is currently the target of a lawsuit file by antiabortion activists.
MEDICAID and MEDICARE: These crucial federal healthcare programs — the first serving low-income Americans and the second serving seniors — are in the GOP’s gunsights. Project 2025 claims that they are “the principal drivers of our $31-trillion national debt. … In essence, our deficit problem is a Medicare and Medicaid problem.”
Never mind that the single biggest driver of federal deficits is the tax cut for corporations and the wealthy signed by Trump in 2017, which could add $5.2 trillion to deficits over the next 10 years.
By Project 2025’s reckoning, Medicare and Medicaid together cost $17.8 trillion from 1967 through 2020, a span of 53 years. This year, the two programs enroll more than 140 million Americans, or more than 41% of the population. (Medicare members also pay premiums for some of its parts.)
Although Trump has vowed not to cut Medicare benefits, conservative antagonism toward Medicaid, the state-federal healthcare program for low-income Americans, has never ebbed. In 2014, under former Speaker Paul Ryan (R-Wisc.), House Republicans proposed converting the program from one that covered a percentage of state spending on healthcare to enrollees into a block-grant structure, that lacked the flexibility needed to confront disease outbreaks as they occur. Ryan’s plan would have cut Medicaid funding by 26% over a decade.
Vaccines have eradicated smallpox and either eliminated or sharply reduced the incidence of measles, polio, rubella and whooping cough. So why are Trump and Robert F. Kennedy Jr. attacking them?
(Centers for Disease Control and Prevention)
It failed, but the idea was taken up by Trump in his first term, though it wasn’t enacted. Expect it to be considered again. Project 2025 advocates adding work requirements to Medicaid, an idea that has proved in the past to achieve nothing in terms of reducing joblessness or improving enrollees’ health, but did end up throwing thousands of people out of the program.
Permission that the last Trump administration granted some states to impose work requirements for Medicaid was overturned by a federal judge in 2019; the Biden White House consigned the idea to the dumpster.
Project 2025 asserts that the ACA “mandates that states must expand their Medicaid eligibility standards” to include everyone at or below 138% of the federal poverty level. This is a lie. Following a Supreme Court ruling, the ACA leaves it to individual states to cover childless low-income individuals; 10 states, all of which are under the control of GOP governors or legislatures, still haven’t done so. The project also calls for eliminating the 90% government match of the cost of that coverage and reducing it to a “fairer and more rational level,” presumably lower.
VACCINES: The rapid development of COVID-19 vaccines, which averted about 1.1 million U.S. deaths and more than 10.3 million hospitalizations within a year of their introduction in December 2020, was one of the few genuine achievements of the first Trump term. So it’s a mystery why he has turned against them, and against vaccines in general.
During his campaign he promised, “I will not give one penny to any school that has a vaccine mandate or a mask mandate.”
It’s possible that this reflects the sway that Robert F. Kennedy Jr. has exercised over Trump, who has promised to place RFK Jr. in a policymaking role over healthcare. The prospect should make all Americans queasy, for Kennedy is a one-stop shop for conspiracy theories ranging from anti-vaccine claims to outright antisemitism.
The truth is that vaccines are indisputably a triumph of medical science. They’ve eradicated smallpox from the face of the Earth and reduced diseases such as measles, polio and whooping cough to occasional outbreaks (among the unvaccinated). If Trump and RFK Jr. intend to make the world safe again for these diseases, they should come right out and say so.
To the authors of Project 2025, the COVID vaccines along with other anti-pandemic policies were nothing but infringements on individual rights (don’t think about the children and families whose rights to a healthy life would be jeopardized by the elimination of school vaccine mandates).
The project rails against the Centers for Disease Control and Prevention and the National Institutes of Health — the country’s premier public health agencies — for “the irrational, destructive, un-American mask and vaccine mandates that were imposed upon an ostensibly free people during the COVID-19 pandemic.” It also claims that “masks provide little to no benefit in preventing the spread of viruses and might even be counterproductive,” a statement that is unadulterated BS.
But that’s just one example of how the right wing, which will now occupy a favored perch in the White House, has elevated an amorphous concept of individual freedom over the undeniably real benefits, to millions of people, of robust pubic health imperatives based on communal responsibility.
How much worse will things have to get before the public wakes up to the consequences? Why in heaven’s name would anyone want to find out?
Business
Startup Varda Space Industries snags former Mattel plant in El Segundo
In an expansion of its business of processing pharmaceuticals in Earth’s orbit, Varda Space Industries is renting a large El Segundo plant where toy manufacturer Mattel used to design Hot Wheels and Barbie dolls.
The plant in El Segundo’s aerospace corridor will be an extension of Varda Space Industries’ headquarters in a much smaller building on nearby Aviation Boulevard.
Varda will occupy a 205,443-square-foot industrial and office campus at 2031 E. Mariposa Ave., which will give it additional capacity to manufacture spacecraft at scale, the company said.
Originally built in the 1940s as an aircraft facility, the complex has a history as part of aerospace and defense industries that have long shaped the South Bay and is near a host of major defense and space contractors. It is also close to Los Angeles Air Force Base, headquarters to the Space Systems Command.
Workers test AstroForge’s Odin asteroid probe, which was lost in space after launch this year.
(Varda Space Industries)
Varda is one of a new generation of aerospace startups that have flourished in Southern California and the South Bay over the last several years, particularly in El Segundo, often with ties to SpaceX.
Elon Musk’s company, founded in 2002 in El Segundo, has revolutionized the industry with reusable rockets that have radically lowered the cost of lifting payloads into space. Though it has moved its headquarters to Texas, SpaceX retains large-scale operations in Hawthorne.
Varda co-founder and Chief Executive Will Bruey is a former SpaceX avionics engineer, and the company’s spacecraft are launched on SpaceX’s workhorse Falcon 9 rockets from Vandenberg Space Force Base in Santa Barbara County.
Varda makes automated labs that look like cylindrical desktop speakers, which it sends into orbit in capsules and satellite platforms it also builds. There, in microgravity, the miniature labs grow molecular crystals that are purer than those produced in Earth’s gravity for use in pharmaceuticals.
It has contracts with drug companies and also the military, which tests technology at hypersonic speeds as the capsules return to Earth.
Its fifth capsule was launched in November and returned to Earth in late January; its next mission is set in the coming weeks. Varda has more than 10 missions scheduled on Falcon 9s through 2028.
For the last several decades, the Mariposa Avenue property served as the research and development center for Mattel Toys. El Segundo has also long been a center for the toy industry as companies like to set up shop in the shadow of Mattel.
The Mattel facility “has always been an exceptional property with a legacy tied to aerospace innovation, and leasing to Varda Space Industries feels like a natural continuation of that story,” said Michael Woods, a partner at GPI Cos., which owns the property.
“We are proud to support a company that is genuinely pushing the boundaries of what’s possible, and are excited to watch Varda grow and thrive here in El Segundo,” Woods said.
As one of the country’s most active hubs of aerospace and defense innovation, El Segundo has seen its industrial property vacancy fall to 3.4% on demand from space companies, government contractors and technology startups, real estate brokerage CBRE said.
Successful startups often have to leave the neighborhood when they want to expand, real estate broker Bob Haley of CBRE said. The 9-acre Mattel facility was big enough to keep Varda in the city.
Last year, Varda subleased about 55,000 square feet of lab space from alternative protein company Beyond Meat at 888 Douglas St. in El Segundo, which it started moving into in June.
Varda will get the keys to its new building in December and spend four to eight months building production and assembly facilities as it ramps up operations. By the end of next year, it expects to have constructed 10 more spacecraft.
In the future, Varda could consolidate offices there, given its size. Currently, though, the plan is to retain all properties, creating a campus of three buildings within a mile of one another that are served by the company’s transportation services, Chief Operating Officer Jonathan Barr said.
“We already have Varda-branded shuttles running up and down Aviation Boulevard,” he said.
Business
How Iran War Is Threatening Global Oil and Gas Supplies
Ships near the Strait of Hormuz before and after attacks began
Every day, around 80 oil and gas tankers typically pass through the Strait of Hormuz, the narrow waterway off Iran’s southern coast that carries a fifth of the world’s oil and a significant amount of natural gas.
On Monday, just two oil and gas tankers appear to have crossed the strait, according to a New York Times analysis of shipping activity from Kpler, an industry data firm. Since then, one tanker passed through.
“It’s a de facto closure,” said Dan Pickering, chief investment officer of Pickering Energy Partners, a Houston financial services firm. “You’ve got a significant number of vessels on either side of the strait but no one is willing to go through.”
Tankers have been staying away from Hormuz since the U.S.-Israeli attacks on Iran that began on Saturday. A prolonged conflict could ripple broadly across the global economy, threatening the energy supplies of countries halfway around the world and stoking inflation.
International oil prices have climbed 12 percent since the fighting began, trading Tuesday around $81 a barrel, and natural gas prices have surged in Europe and in Asia.
A senior Iranian military official threatened on Monday to “set on fire” any ships traveling through the Strait of Hormuz. Vessels in the region have already come under attack. Several oil and gas facilities have also been struck or affected by nearby shelling, though the damage did not initially appear to be catastrophic.
Where ships and energy facilities have been damaged
A fire broke out Tuesday at a major energy hub in Fujairah, United Arab Emirates, from the falling debris of a downed drone, the authorities said. On Monday, Qatar halted production of liquefied natural gas, or fuel that has been cooled so that it can be transported on ships, after attacks on its facilities.
The sharp reduction in tanker traffic is reducing the supply of oil and gas to world markets, pushing up prices for both commodities. And the longer that ships stay away from the Strait of Hormuz, the less oil and gas get out to the world, which could raise prices even more.
Shipping companies have paused their tankers to protect their crew and cargo, and because insurance companies are charging significantly more to cover vessels in the conflict area.
On Tuesday, President Trump said that “if necessary,” the U.S. Navy would begin escorting tankers through the strait. He also said a U.S. government agency would begin offering “political risk insurance” to shipping lines in the area.
In addition to tankers, other large vessels regularly go through the strait, including car carriers and container ships. In normal conditions, nearly 160 make the trip each day.
Some ships in the region turn off the devices that broadcast their positions, while others transmit false locations — making it hard to give a full picture of the traffic in the strait.
The Shiva is a small oil tanker that has repeatedly faked its location, according to TankerTrackers.com, which tracks global oil shipments. It is suspected of carrying sanctioned Iranian oil, according to Kpler. The Shiva was one of the two tankers that crossed the strait on Monday.
The oil and gas that typically move through the strait come from big producing countries like Saudi Arabia, Iraq, Iran and United Arab Emirates, and are exported around the world.
Where tankers moving through the Strait have traveled
In 2024, more than 80 percent of the oil and gas transported through the Strait of Hormuz went to Asia. China, India, Japan and South Korea were the top importers, according to the U.S. Energy Information Administration.
Countries have energy stockpiles that could last them into the coming months, but a continued shutdown of the strait could damage their economies.
Several big disruptions have roiled supply chains in recent years, but the tanker standstill in the Strait of Hormuz could have an outsize impact.
Business
Paramount credit downgraded to ‘junk’ status over debt worries
Paramount Skydance’s jubilation over its come-from-behind victory to claim Warner Bros. Discovery has entered a new phase:
Call it the deal-debt hangover.
Two major ratings agencies have raised concerns about Paramount’s credit because of the enormous debt the David Ellison-led company will have to shoulder — at least $79 billion — once it absorbs the larger Warner Bros. Discovery, bringing CNN, HBO, TBS and Cartoon Network into the Paramount fold.
Fitch Ratings said Monday that it placed Paramount on its “negative” ratings watch, and downgraded its credit to BB+ from BBB-, which puts the company’s credit into “junk” territory. Fitch said it took action due to “uncertainty” surrounding Paramount’s $110-billion deal for Warner Bros. Discovery, which the boards of both companies approved on Friday.
S&P Global Ratings took similar action.
To finance the Warner takeover, Ellison’s billionaire father, Larry Ellison, has agreed to guarantee the $45.7 billion in equity needed. Bank of America, Citibank and Apollo Global have agreed to provide Paramount with more than $54 billion in debt financing.
“Potential credit risks include the prospective debt-funded structure, Fitch’s expectation of materially elevated leverage and limited visibility on post-transaction financial policy and capital structure,” Fitch said.
Late last week, Paramount sent $2.8 billion to Netflix as a “termination fee” to officially end the streaming giant’s pursuit of Warner Bros. That payment paved the way for Warner and Paramount’s board to enter into the new merger agreement.
Paramount hopes the merger will be wrapped up by the end of September. It needs the approval of Warner Bros. Discovery shareholders and regulators, including the European Union.
Paramount executives acknowledged this week the new company would emerge with $79 billion in debt — a considerably higher total than what Warner Bros. Discovery had following its spinoff from AT&T. That 2022 transaction left Warner Bros. Discovery with nearly $55 billion of debt, a burden that led to endless waves of cost-cutting, including thousands of layoffs and dozens of canceled projects.
Warner still has $33.5 billion in debt, a lingering legacy that will be passed on to Paramount.
Paramount plans to restructure about $15 billion in Warner Bros. Discovery’s existing debt.
Paramount CEO David Ellison at a 2024 movie premiere for a Netflix show.
(Evan Agostini / Invision / AP)
Paramount told Wall Street it would find more than $6 billion in cost cuts or “synergies” within three years — a number that has weighed heavily on entertainment industry workers, particularly in Los Angeles.
Hollywood already is reeling from previous mergers in addition to a sharp pullback in film and television production locally as filmmakers chase tax credits offered overseas and in other states, including New York and New Jersey.
Some entertainment executives, including Netflix Co-Chief Executive Ted Sarandos, have speculated that Paramount will need to find more than $10 billion in cost cuts to make the math work. More recently, Sarandos went higher, telling Bloomberg News that Paramount may need $16 billion in cuts.
Cognizant of widespread fears about additional layoffs, Paramount Chief Operating Officer Andrew Gordon took steps this week to try to tamp down such concerns.
Gordon is a former Goldman Sachs banker and a former executive with RedBird Capital Partners, an investor in Paramount and the proposed Warner Bros. deal. He joined Paramount last August as part of the Ellison takeover.
During a conference call Monday with analysts, Gordon said Paramount would look beyond the workforce for cuts because the company wants to maintain its film and TV production levels.
Paramount plans to look for cost savings by consolidating the “technology stacks and cloud providers” for its streaming services, including Paramount+ and HBO Max, Gordon said. The company also would search for reductions in corporate overhead, marketing expenses, procurement, business services and “optimizing the combined real estate footprint.”
It’s unclear whether Paramount would sell the historic Melrose Avenue lot or simply centralize the sprawling operations onto the Warner Bros. and Paramount lots in Burbank and Hollywood.
Workers are scattered throughout the region.
HBO, owned by Warner Bros. Discovery, maintains its West Coast headquarters in Culver City; CBS television stations operate from CBS’ former lot off Radford Avenue in Studio City; and CBS Entertainment and Paramount cable channels executive teams are located in a high-rise off Gower Street and Sunset Boulevard, blocks from the Paramount movie studio lot.
“The combination of PSKY and WBD could create a materially stronger business than either individual entity,” Standard & Poor’s said in its note to investors. “However, this transaction presents unique challenges because it would involve the combination of three companies, with the smallest, Skydance, being the controlling entity.”
David Ellison’s production firm, Skydance Media, was the entity that bought Paramount, creating Paramount Skydance.
Ellison has not announced what the combined company will be called.
Paramount shares closed down more than 6% Tuesday to $12.45.
Warner Bros. Discovery fell 1% to $28.20. Netflix added less than 1% to close at $97.70.
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