Policy Update – August 4, 2025

Introduction
This Week: From Medicare's potential $2.5 billion in savings through service cuts and the FDA's leadership exodus to NIH funding slashed to just 4% of applications and Trump's drug pricing ultimatum, seismic policy shifts and financial upheavals are reshaping every corner of America's healthcare landscape.

Other Regulatory News

Centers for Medicare and Medicaid Services (CMS)

Cutting Medicaid Funding Isn’t the Only Worrisome Change to the Program

Concerns regarding proposed cuts to Medicaid funding are highlighted, along with broader changes to the program that could impact healthcare access for vulnerable populations.

Sources: MedPageToday.com

Audience: #PAYER, #PATIENT

CMS warns states of new Medicaid waiver expectations

The Centers for Medicare & Medicaid Services (CMS) has issued new expectations for states regarding Medicaid waivers, signaling a shift in policy that could impact how states manage their Medicaid programs. This announcement comes as part of ongoing efforts to enhance the efficiency and effectiveness of Medicaid services.

Sources: Fierce Healthcare

Audience: #ALL

CMS Is Getting WISeR About Medicare Waste—But At What Cost To Providers?

CMS’s initiatives to reduce waste in Medicare are examined, discussing the potential implications for healthcare providers and the sustainability of care.

Sources: Morgan Lewis

Audience: #PROVIDER, #PAYER

New number-crunching shows Medicare could save itself more than $2.5B a year by just saying ‘No’ to 5 low-value services

Researchers propose that Medicare could significantly reduce costs by eliminating five low-value services, suggesting that no single CMS strategy has successfully balanced cost savings with patient outcomes. This analysis points to potential avenues for reform in Medicare spending practices.

Sources: Health Exec

Audience: #ALL

CMS finalizes inpatient payment rate increase for 2026

CMS has announced a finalized increase in inpatient payment rates for the year 2026, impacting how healthcare facilities will be reimbursed for patient care. This decision reflects ongoing adjustments in healthcare funding and reimbursement strategies.

Sources: Healthcare Dive

Audience: #PROVIDER

CMMI Previews Upcoming Models, Calls For Job Applicants Despite RIF, Federal Hiring Freeze

The CMS Innovation Center is looking to enhance transparency in the Medicare Star rating system and focus on prevention and patient safety. This initiative comes amidst confusion regarding hiring practices due to a federal hiring freeze and recent layoffs within the center.

Sources: InsideHealthPolicy Daily News:

Audience: #ALL

For AI-based ‘breakthrough’ medical devices, Medicare coverage may become easier

Legislation is being proposed to simplify Medicare reimbursement for AI-based medical devices, aiming to encourage the adoption of innovative technologies that have received FDA approval.

Sources: STAT News

Audience: #DEVICE, #PATIENT

White House Healthcare Data Sharing Initiative

The White House announced a health IT initiative to improve data transfer among healthcare organizations, with venture investment in medical technology reaching $6.8 billion in the first half of 2025, indicating market stability despite previous fluctuations.

Sources: Becker’s Hospital Review,  STAT, CMS.gov

Audience: #ALL

CMS negotiates with insurers as Medicare premiums set to rise

Ongoing negotiations between the Centers for Medicare & Medicaid Services (CMS) and insurers are taking place in light of rising Medicare premiums. The discussions highlight the complexities involved in maintaining affordable healthcare coverage amidst financial pressures.

Sources: Fierce Healthcare:

Audience: #PAYER, #PATIENT

Medicare Advantage Growth Drives Changes in Post-Acute Care

Medicare Advantage growth reshapes post-acute care services, affecting home health, hospice, and skilled nursing facilities as the industry adapts to new value-based care challenges.

Sources: Managed Healthcare Executive:

Audience: #ALL

UnitedHealth Group Resets Earnings Projections Way Below Previous Expectations

UnitedHealth Group adjusted earnings projections downward due to rising medical costs impacting operational earnings, reflecting significant financial strain and broader healthcare industry challenges.

Sources: Managed Healthcare Executive

Audience: #ALL

7. Cigna’s Second-Quarter Earnings Beat Expectations

Cigna reported strong second-quarter earnings, attributed to growth in its pharmacy benefit services business, indicating a positive financial outlook for the company.

Sources: Managed Healthcare Executive

Audience: #PAYER

Food and Drug Administration (FDA)

Vinay Prasad’s FDA Departure

The White House quits keep on coming

The FDA’s biologics center chief, Vinay Prasad, has left his position, marking a significant shift in leadership. The departure highlights the rapid turnover of officials within the FDA, with Prasad’s tenure being notably brief. The move emphasizes the challenges faced by the FDA in maintaining stability amid political pressures and evolving health policy landscapes. He left his position after a short and controversial tenure marked by decisions regarding Duchenne muscular dystrophy treatments. His departure raises questions about the agency’s direction and leadership stability. An opinion piece reflects on the implications of Vinay Prasad’s departure from the FDA, arguing that his exit represents a loss for American medicine and the pursuit of evidence-based practices.

Sources: STAT, STAT, STAT News

Audience: #ALL

Opinion: How the FDA can score quick wins on transparency

Recent criticism of FDA transparency efforts highlights the need for better organization of publicly available drug information. Improving data access could enhance public trust and accountability within the agency.

Sources: STAT

Audience: #ALL

New FDA Drug Chief: ‘Revolving Door’ or Reformer?

George Tidmarsh’s appointment as new FDA drug chief raises questions about potential conflicts of interest due to his pharmaceutical industry background. His leadership will be scrutinized as the FDA seeks to address the revolving door between industry and regulatory roles.

Sources: MedPage Today

Audience: #ALL

Health and Human Services (HHS)

CDC and Vaccine Advisory Restructuring

Seventeen experts removed from a government vaccine committee express deep concerns over the committee’s direction, suggesting it has strayed from rigorous scientific standards. They propose alternative strategies for U.S. vaccine policy, reflecting their dissatisfaction with current practices and raising concerns about the impact on public health advisory processes. Healthcare organizations that previously assisted the CDC’s Advisory Committee on Immunization Practices (ACIP) in developing vaccine recommendations have been barred from participating in ACIP work groups. This decision is part of a move to prevent perceived bias in vaccine advisory processes, coinciding with significant changes in health policy under the Trump administration.

Sources: AP,MedPageToday.com, MedPageToday.com:

Audience: #ALL

Susan Monarez confirmed as Trump’s CDC director

The Senate confirmed Susan Monarez as the director of the U.S. Centers for Disease Control and Prevention, following her appointment as acting director in January after the withdrawal of David Weldon as Trump’s initial nominee. Monarez, 50, has now officially taken on the leadership role at the CDC.

Sources: STAT News

Audience: #ALL

RFK Jr. Says He’s Going to Overhaul Vaccine Injury Program

HHS Secretary Robert F. Kennedy Jr. announced plans to reform the Vaccine Injury Compensation Program, criticizing current inefficiencies and calling for significant changes.

Sources: MedPage Today

Audience: #ALL

Tensions escalate at NIH as Bhattacharya allows health disparities research to wither

NIH director Jay Bhattacharya is being critiqued for allowing research on health disparities to decline during his tenure, despite his previous focus on the subject. Under his leadership, the NIH has cut over 1,000 grants, largely due to the Trump administration’s stance against diversity, equity, and inclusion initiatives. This shift undermines support for vulnerable populations, reflecting broader tensions within the NIH regarding priorities and funding allocations.

Sources: STAT

Audience: #ALL

NIH Funding Crisis and Policy Reversals

The NIH reduces grant application funding due to new Trump administration policy, with some branches expected to fund only 4% of applications. This change significantly increases competition for grants and may continue without congressional intervention.

Comprehensive analysis reveals significant decline in NIH funding for basic science research over three decades, raising concerns about the future of medical breakthroughs and innovation in the U.S. After a brief halt in NIH funding due to a White House memo, the Trump administration reversed this decision following backlash from Congress and advocacy groups, allowing research grants and contracts to resume. The White House Office of Management and Budget has restricted NIH from issuing research grants, impacting funding for various projects. This restriction raises concerns about the future of research initiatives.

Sources: STAT, InsideHealthPolicy Daily News, STAT News, STAT News

Audience: #ALL

Opinion: U.S. must develop plan to protect clinical trials as national security asset

Rising geopolitical tensions require the U.S. to prioritize clinical trial infrastructure as a vital national security asset. Failing to protect this infrastructure risks losing ground to global competitors and jeopardizes public health.

Sources: STAT

Audience: #ALL

Trump administration proposes pilot initiative to address controversy over 340B drug discount program

The Trump administration has introduced a voluntary program where pharmaceutical companies can provide rebates to hospitals involved in the 340B drug discount program. This initiative aims to resolve ongoing disputes regarding drug pricing and the financial implications for participating hospitals, which have raised concerns over potential cost burdens.

Sources: STAT:

Audience: #DRUG, #HOSPITAL, #PAYER

Hospital ‘harm events’ slip through the cracks, HHS OIG finds

A report from the HHS Office of Inspector General reveals that hospital harm events are not adequately reported or addressed, highlighting systemic issues in patient safety and quality of care.

Sources: Modern Healthcare

Audience: #ALL

AIDS activists sue HHS to obtain Gilead settlement over patents for HIV prevention pills

A patient advocacy group has filed a lawsuit against the Trump administration for failing to disclose details of a settlement with Gilead Sciences regarding patent rights for HIV prevention pills, Truvada and Descovy. The settlement concluded years of litigation initiated by the CDC, which claimed its funding supported crucial research that Gilead allegedly infringed upon. The lawsuit highlights concerns over the affordability of medications resulting from government-funded research.

Sources: STAT

Audience: #DRUG, #PATIENT

The ACA Marketplace Plans Are Also in the Crosshairs

Impending cuts to enrollment in health plans sold on the Affordable Care Act exchanges are highlighted, with recent legislative changes and CMS rule modifications significantly affecting access to these plans.

Sources: Managed Healthcare Executive

Audience: #ALL

Hill Happenings

How to Make Healthcare Affordable? Senators’ Suggestions Vary Widely

Members of the Senate Health, Education, Labor, and Pensions Committee propose diverse strategies to make healthcare more affordable, reflecting the complexity of healthcare reform.

Sources: MedPageToday.com

Audience: #ALL

Senate passes first funding package ahead of shutdown cliff

The Senate has successfully passed a package of three spending bills aimed at funding the departments of Veterans Affairs, Agriculture, military construction, and the FDA. This bipartisan effort, while not fully preventing a potential government shutdown, is intended to provide leverage in ongoing budget negotiations. The package reflects a 2% increase in funding for key areas.

Sources: POLITICO

Audience: #ALL

MAGA influencers take a sudden interest in Medicare Advantage reforms, echoing a dark money group

The sudden involvement of MAGA influencers in Medicare Advantage discussions suggests coordinated efforts to protect the profitability of the program amid proposed reforms.

Sources: STAT

Audience: #PAYER, #PATIENT

Notable Notes

ACOG Rejects Federal Funding

The American College of Obstetricians and Gynecologists (ACOG) has announced its decision to cease accepting federal funding due to changes in federal laws and regulations that conflict with its program goals and policy positions. ACOG, representing over 60,000 OB-GYNs, emphasized its commitment to continue its work centered on patient needs and evidence-based care without federal support. This move coincides with the Trump administration’s broader efforts to dismantle federal diversity, equity, and inclusion initiatives.

Sources: Becker’s Hospital Review, MedPageToday.com

Audience: #PROVIDER

Pilot study looks at same-day discharge PCI for acute coronary syndromes

A study indicates that same-day discharge after percutaneous coronary intervention (PCI) is feasible for selected patients with acute coronary syndromes. The findings suggest potential improvements in patient care and hospital efficiency.

Sources: Cardiovascular Business

Audience: #PROVIDER, #HOSPITAL

Exploring the value of same-day permanent pacemaker implantation after TAVR

Recent Canadian research suggests that in specific scenarios, immediate implantation of permanent pacemakers following transcatheter aortic valve replacement (TAVR) may be beneficial, challenging the traditional practice of using temporary pacemakers for at least 24 hours before considering a permanent device. This study aims to improve patient outcomes and streamline procedural protocols in cardiac care.

Sources: Cardiovascular Business

Audience: #PATIENT, #PROVIDER, #DEVICE

Trump Administration Drug Pricing Campaign

President Trump has intensified his demands for pharmaceutical companies to reduce U.S. drug prices to align with those in other wealthy nations. He has outlined specific actions for companies to take by a set deadline, though enforcement mechanisms remain unclear. He also plans to impose a 15% tariff on pharmaceuticals imported from the EU, pending a national security investigation. This decision is part of a broader trade agreement but remains contentious regarding specifics.

Sources: STAT, Becker’s Hospital Review, STAT

Audience: #DRUG

Lung Cancer Patients Among Those Facing Steep Out-of-Pocket Costs After Diagnosis, Study Finds

A study reveals that lung cancer patients face significant out-of-pocket costs following their diagnosis, raising concerns about the financial burden of cancer treatment.

Sources: Managed Healthcare Executive

Audience: #PATIENT, #PAYER

Trump’s order to remove ‘woke’ AI from government may have ‘downstream impacts,’ experts worry

Experts express concern about new Trump administration executive orders regulating AI, particularly regarding free speech and ideological neutrality in government contracts. The ambiguity raises questions about potential impacts on AI technology and applications.

Sources: Government Executive

Audience: #ALL

Successful outreach program brings heart screenings to underserved communities

Former ACC president Kim Allan Williams Sr. discusses a successful outreach initiative that provides heart screenings to low-income neighborhoods, emphasizing the need to actively engage with underserved populations to improve health outcomes.

Sources: Cardiovascular Business

Audience: #ALL

Most American’s hearts are older than their chronological age, new tool says

A new tool assessing heart health indicates that many Americans have a biological heart age older than their chronological age, raising concerns about cardiovascular health and the effectiveness of current preventive measures.

Sources: STAT News

Audience: #ALL

U.S. judge blocks first-in-the-nation law barring companies from owning PBMs and pharmacies in Arkansas

A federal judge has temporarily blocked an Arkansas law that would prevent companies owning pharmacy benefit managers (PBMs) from also operating retail and mail-order pharmacies. The law aimed to address concerns that large PBM companies might favor their own pharmacies, impacting drug pricing and access for millions of Americans.

Sources: STAT News

Audience: #DRUG

Lessons from 10.5 million patient encounters: Press Ganey

Analysis of patient experience scores from 10.5 million encounters shows overall improvements in patient trust and confidence in hospitals, with care team cohesion and communication significantly influencing likelihood to recommend scores.

Sources: Becker’s Hospital Review

Audience: #HOSPITAL

List of America’s best hospitals announced by U.S. News

U.S. News has released its annual list of the best hospitals in America, which awards points based on rankings in various specialties and patient outcomes. The rankings serve as important guidance for patients and healthcare decisions.

Sources: Health Exec

Audience: #HOSPITAL

Physician compensation in 2025 report released

Physician salaries in the U.S. have risen by 3.7% from 2023 to 2024, reflecting a response to growing physician shortages as health systems seek to attract and retain staff. However, this increase is less than the previous year’s growth, indicating a potential trend in compensation adjustments within the medical profession amid ongoing workforce challenges.

Sources: Health Exec

Audience: #PROVIDER

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