Robert F. Kennedy Jr. is set to undergo two days of Senate confirmation hearings this week as he vies to become the secretary of Health and Human Services. A group of startups specializing in nutrition-based services covered by Medicaid will be closely monitoring the proceedings.
Kennedy, a controversial choice for President Donald Trump’s Cabinet, will appear before the Senate Finance Committee on Wednesday. If appointed as HHS secretary, he would be responsible for managing a budget exceeding $2 trillion, which includes drug research, approvals, and oversight of Medicare and Medicaid health programs.
His skepticism towards vaccines and involvement in anti-vaccine lawsuits are expected to be key areas of inquiry during the hearings. Both sides of the political spectrum have raised concerns about his views.
Kennedy has emphasized the importance of nutritious food in combating chronic diseases in the U.S. Amid Republican efforts to reduce funding for the federal-state Medicaid program, investors and startups in nutrition-based services are hopeful that Kennedy’s commitment to “Make America Healthy Again” will support the food-as-medicine sector and shield these programs from budget cuts.
Ashley Tyrner-Dolce, CEO of FarmBoxRx, a startup collaborating with Medicaid and Medicare Advantage plans to deliver nutritious food to patients, believes that the current administration will address the root causes of health issues affecting individuals.
The rise in obesity and Type 2 diabetes rates has prompted state Medicaid programs to offer nutritional counseling to help members manage chronic conditions, similar to initiatives by large employers and commercial insurance plans.
Over the past few years, there has been a surge in investment in food-as-medicine companies, with more than $2 billion raised by over four dozen startups. This sector saw a 175% increase in funding in 2024, with notable deals like telenutrition startup FoodSmart securing $200 million in venture funding.
Kennedy’s stance on prioritizing diet over medication for treating chronic conditions has garnered support from food-as-medicine companies. He aims to address corruption in regulatory agencies, promote evidence-based science, and tackle chronic diseases during his tenure as HHS secretary.
The demand for food and nutrition programs has grown significantly, with several states receiving waivers to implement such initiatives. This trend has fueled the growth of startups catering to government health plans.
Investors are increasingly interested in leveraging food interventions to enhance patient outcomes and reduce costs. S2G Ventures, a venture capital fund, has backed several food-as-medicine startups, highlighting the potential for these programs to benefit vulnerable populations.
Kennedy’s advocacy for dietary interventions to combat chronic diseases is expected to further stimulate investor interest in this sector. Proposals to expand coverage of healthy foods and nutrition services as medical benefits are likely to sustain investor enthusiasm.
The Biden administration’s proposal to extend coverage of anti-obesity drugs to Medicaid and Medicare patients may face opposition from Kennedy due to his reservations about costly weight loss medications. The U.S. is poised for discussions on healthcare spending, with a focus on achieving optimal patient outcomes while managing costs effectively.
