Policy Update – October 6, 2025

Introduction
A perfect storm: federal shutdown furloughs 32,000+ HHS staff and halts FDA approvals, Medicare Advantage enrollment drops amid premium cuts, Trump's drug pricing deals draw widespread skepticism, and millions face insurance cost spikes as Congress battles over ACA subsidies.

Other Regulatory News

Centers for Medicare and Medicaid Services (CMS)

CMS Announces Medicare Advantage Premium Reductions and Enrollment Decline for 2026

The Centers for Medicare & Medicaid Services announced Medicare Advantage premiums will decline slightly in 2026 while projecting enrollment decreases, signaling potential beneficiary shifts toward traditional Medicare. The premium reductions aim to reduce financial burden on seniors but may impact hospital reimbursements and pharmaceutical coverage within Medicare plans. Enrollment declines reflect concerns over provider network changes and pharmaceutical coverage, requiring adaptation from hospital systems, device manufacturers, and stakeholders to evolving CMS reimbursement strategies in the Medicare landscape.
Source(s):
Medicare Advantage Premiums to Decline Slightly in 2026, Says CMS (Healthcare Finance News)
Medicare Advantage Enrollment Projected to Fall in 2026: CMS (Healthcare Dive)
Tags: #ALL

CMS’ Plan to Hire Medicare Advantage Auditors Appears to Stall

CMS’s Medicare Advantage auditor hiring initiative has stalled, undermining regulatory oversight of health plans serving Medicare beneficiaries. The delays raise concerns about accountability gaps that could impact hospitals, pharmaceutical access, and medical device coverage for seniors, while weakening CMS’s ability to ensure proper plan compliance and protect patient care quality.
Source(s):
CMS’ Plan to Hire Medicare Advantage Auditors Appears to Stall (Modern Healthcare)
Tags: #ALL

Aetna Unveils Medicare Advantage Plans for 2026

Aetna has announced its 2026 Medicare Advantage plans featuring enhanced pharmaceutical benefits and preventative care coverage, responding to CMS regulatory updates. The plans target drug cost reductions for Medicare beneficiaries while addressing hospital network adequacy requirements under evolving federal healthcare policy frameworks.
Source(s):
Aetna Unveils Medicare Advantage Plans for 2026 (Managed Healthcare Executive)
Tags: #PAYER, #PATIENT

Humana Reports Decline in Medicare Advantage Membership

Humana reports Medicare Advantage membership decline amid CMS regulatory pressures, potentially impacting hospital partnerships and pharmaceutical coverage access. The enrollment drop in top-rated plans signals broader Medicare policy challenges affecting beneficiary care options and provider network stability across the healthcare system.
Source(s):
Humana Reports Decline in Medicare Advantage Membership (Modern Healthcare)
Tags: #PAYER, #HOSPITAL, #PATIENT

CMS Drops Medicare Advantage Unused Benefits Notification Policy

The Centers for Medicare & Medicaid Services (CMS) has rescinded its Medicare policy requiring Medicare Advantage plans to notify beneficiaries of unused benefits. This regulatory change affects Medicare beneficiaries, healthcare providers, and hospitals who previously relied on mandated notifications for benefit utilization tracking and care planning decisions.
Source(s):
CMS Drops Medicare Advantage Unused Benefits Notification Policy (Modern Healthcare)
Tags: #PAYER, #PATIENT, #PROVIDER

Medicare Advantage Special Needs Plans Becoming More Popular, KFF Report Says

A KFF report shows Medicare Advantage Special Needs Plans (SNPs) enrollment surged to 21% of all Medicare Advantage enrollees since 2018, driven by evolving CMS requirements favoring chronic condition management over dual-eligible coverage. This shift impacts healthcare delivery for vulnerable populations, pharmaceutical utilization patterns, and hospital reimbursement strategies under Medicare policy frameworks.
Source(s):
Medicare Advantage Special Needs Plans Becoming More Popular, KFF Report Says (Managed Healthcare Executive)
Tags: #ALL

Who will lose coverage after work requirements?

Implications of new work requirements on health coverage, particularly focusing on populations that may lose Medicaid benefits enforced by HHS and CMS. The discussion emphasizes potential coverage gaps affecting hospital systems, Medicare-eligible populations, and pharmaceutical access as consequence of policy changes impacting vulnerable stakeholder groups.
Source(s):
Who will lose coverage after work requirements? (Stat)
Tags: #ALL

Trump-Pfizer drug pricing deal faces skepticism as MFN policy deadline passes without implementation

The Trump administration’s Most Favored Nation (MFN) drug pricing policy deadline has passed without implementation, while a separate pharmaceutical pricing agreement between President Trump and Pfizer CEO Albert Bourla aims to align Medicaid drug costs with international benchmarks. The CMS-supported deal faces widespread expert skepticism over its actual effectiveness in lowering prescription drug prices for Medicare and Medicaid beneficiaries, with unclear implementation details and potential impacts on hospital reimbursements. The stalled MFN progress leaves potential cost savings unrealized for federal healthcare programs, raising broader questions about pharmaceutical pricing reform efforts.
Source(s):
Trump’s MFN deadline came and went (Stat)
Trump, Pfizer, and the art of a drug pricing deal (Stat)
Will the White House drug-pricing deal lower costs for Americans? Experts are skeptical (Stat)
Tags: #ALL

Trump Administration Delays Medicare Drug Price Negotiation Reforms

The Trump administration has postponed Medicare drug price negotiation reforms that would close pharmaceutical manufacturer loopholes, delaying CMS implementation of stricter pricing controls. The delay benefits drug companies while potentially increasing costs for Medicare beneficiaries and healthcare systems.
Source(s):
Trump Administration Delays Medicare Drug Price Negotiation Reforms (Stat)
Tags: #ALL

Pfizer’s Drug Pricing Agreement Viewed as Political Tool

Pfizer’s drug pricing agreement with the White House, perceived by analysts as a political tool ahead of elections, will require securities disclosure and highlights the intersection of healthcare policy and political strategy. The agreement affects pharmaceutical transparency requirements and has implications for Medicare pricing policies, CMS regulations, and broader stakeholder confidence in drug pricing reform initiatives during the current political cycle.
Source(s):
Pfizer’s Drug Pricing Agreement Viewed as Political Tool (InsideHealthPolicy Daily News)
Tags: #ALL

Trump Administration’s Multi-Pronged Drug Pricing Strategy Shows Mixed Progress as CMS Delays IRA Loophole Fix While Pfizer Deal Launches New Demonstration Projects

The Trump administration’s drug pricing agenda is advancing through multiple channels with varying results. While CMS delayed closing an Inflation Reduction Act loophole that allows pharmaceutical manufacturers to circumvent Medicare price negotiations—potentially maintaining higher costs for beneficiaries—the administration secured a direct agreement with Pfizer to sell nearly all medications at reduced costs to Medicare patients. This Pfizer deal has now spawned additional CMS demonstration projects targeting pharmaceutical pricing reform, though experts question whether these initiatives will deliver substantial savings to Medicare patients or significantly impact broader pharmaceutical pricing dynamics across hospital systems and the healthcare industry.
Source(s):
CMS Delays Addressing IRA Loophole in Drug Pricing (Stat)
Another Drug Pricing Demo Surfaces After Trump-Pfizer Deal (InsideHealthPolicy Daily News)
How Pfizer-Trump Deal Could Affect Drug Prices (Becker’s Hospital Review)
Tags: #ALL

CMS Announces Changes to AHEAD Model for States

CMS announces modifications to the AHEAD Medicare demonstration model, impacting hospital systems and healthcare delivery in participating states. Changes aim to improve care coordination and outcomes while potentially affecting pharmaceutical and device utilization patterns. State healthcare stakeholders should review implementation requirements and compliance implications for their organizations.
Source(s):
CMS Announces Changes to AHEAD Model for States (American Hospital Association)
Tags: #ALL

SCAI outlines broken Medicaid reimbursement model for congenital heart disease

The Society for Cardiovascular Angiography and Interventions (SCAI) has criticized the current Medicaid reimbursement model for inadequately compensating hospitals and providers caring for congenital heart disease patients. This reimbursement gap affects device utilization and pharmaceutical access, potentially limiting treatment options for vulnerable pediatric and adult populations. The critique highlights broader CMS policy challenges in specialty care funding that may require Medicare alignment reforms to ensure adequate provider participation and patient access to essential cardiovascular interventions.
Source(s):
SCAI outlines broken Medicaid reimbursement model for congenital heart disease (Cardiovascular Business)
Tags: #ALL

‘It’s Better All the Way Around’: Changing How Primary Care Docs Are Paid

Ongoing healthcare sector changes are reshaping primary care physician compensation structures amid regulatory shifts targeting pharmacy benefit managers and Medicare reimbursement policies. Health insurers are adapting payment models to improve provider incentives, with CMS exploring value-based care alternatives that could impact hospital partnerships and pharmaceutical coverage decisions, though specific reimbursement details remain undefined.
Source(s):
‘It’s Better All the Way Around’: Changing How Primary Care Docs Are Paid (MedPageToday.com)
Tags: #PROVIDER, #PAYER, #HOSPITAL

CMS’s Healthcare Data Sharing Plan Raises Security Concerns

The Centers for Medicare & Medicaid Services (CMS) is advancing a healthcare data sharing initiative affecting hospitals, pharmaceutical companies, and medical device manufacturers that has raised significant security concerns among Medicare stakeholders. The policy could impact FDA regulatory compliance and patient data protection across healthcare systems.
Source(s):
CMS’s Healthcare Data Sharing Plan Raises Security Concerns (Medical Device Network)
Tags: #ALL

Food and Drug Administration (FDA)

FDA Suspends New Drug and Device Applications During Government Shutdown, Creating Healthcare Access Concerns

The FDA has halted acceptance of new pharmaceutical and medical device applications due to the federal government shutdown, while managing to avoid major operational disruptions in other areas. This suspension significantly impacts regulatory approval processes and could delay access to innovative therapies for patients, particularly affecting Medicare beneficiaries and CMS-covered populations.
Source(s):
FDA avoids the worst amid government shutdown, but new applications put on hold (Fierce Pharma)
FDA Halts New Drug and Device Applications Amid Shutdown (Medwatch.com)
Tags: #ALL

Top FDA drug regulator’s unusual criticism of a therapy gets Wall Street wagging

A senior FDA official’s unexpected public criticism of a pharmaceutical therapy has sparked significant Wall Street market reaction, raising concerns about regulatory oversight implications for device manufacturers, hospital systems, and potential Medicare/CMS coverage decisions affecting healthcare stakeholders.
Source(s):
Top FDA drug regulator’s unusual criticism of a therapy gets Wall Street wagging (Stat)
Tags: #DRUG, #DEVICE, #PAYER

Research on Heart Surgery Outcomes Post-TAVR

A Cleveland Clinic study examines long-term safety of surgical aortic valve replacement after TAVR procedures, with findings expected to influence FDA device approval guidelines, Medicare reimbursement policies, and hospital cardiac surgery protocols, impacting patient care strategies and healthcare stakeholder decision-making across cardiovascular medicine.
Source(s):
Research on Heart Surgery Outcomes Post-TAVR (Cardiovascular Business)
Tags: #ALL

FDA Seeks Industry Feedback on AI Medical Device Safety Monitoring

The FDA is soliciting feedback from medical device manufacturers, hospitals, and healthcare stakeholders on safety monitoring frameworks for AI-powered medical devices. This regulatory initiative will impact device approval processes, Medicare reimbursement policies, and hospital AI adoption strategies.
Source(s):
FDA Seeks Industry Feedback on AI Medical Device Safety Monitoring (Medical Device Network)
Tags: #ALL

Health and Human Services

Government shutdown furloughs 32,000+ HHS employees, disrupting FDA approvals, CDC operations, and Medicare oversight

The October 2025 government shutdown has furloughed over 32,000 Department of Health and Human Services employees, creating cascading disruptions across federal healthcare operations. The shutdown halts FDA drug and medical device approvals, threatens pharmaceutical supply chains, suspends CDC public health initiatives, and impairs CMS hospital compliance monitoring. While essential services like Medicare and Medicaid payments continue, the unprecedented scale of HHS furloughs is hampering critical communication with hospitals and pharmaceutical stakeholders during a crucial period for health policy implementation, revealing risks beyond typical administrative disruptions.
Source(s):
The ultra risks of a routine shutdown (Government Executive)
Government shutdown set to furlough more than 32,000 at HHS, hamper CDC, CMS communication (Stat)
Government shutdown 2025: A guide to what’s still open, what’s closed and what’s fuzzy (POLITICO)
Tags: #ALL

Public Health Infrastructure in Crisis: HHS Workforce Cuts, Reorganizations, and Funding Reductions: Impacts and Solutions

The report highlights significant HHS workforce cuts and funding reductions, impacting FDA oversight, Medicare administration through CMS, and hospital systems’ public health capacity. These pharmaceutical and medical device regulatory gaps exacerbate healthcare delivery challenges for vulnerable populations and compromise emergency preparedness infrastructure.
Source(s):
Public Health Infrastructure in Crisis: HHS Workforce Cuts, Reorganizations, and Funding Reductions: Impacts and Solutions (TFAH)
Tags: #ALL

Medical Groups Call for Physician Exemptions to Trump’s Executive Order

Various medical groups are urging the Trump administration to exempt healthcare professionals from a recent executive order affecting visa restrictions, raising concerns among hospital stakeholders and healthcare systems about maintaining adequate staffing in medical facilities.
Source(s):
Medical Groups Call for Physician Exemptions to Trump’s Executive Order (MedPage Today Primary Care)
Tags: #ALL

Cardiac Device Regulation Sparks Debate Over TAVR Low-Risk Expansion While Impella Shows High-Risk PCI Value

Recent developments in cardiac device policy reveal mounting concerns over FDA approval criteria and Medicare coverage for TAVR procedures in low-risk aortic stenosis patients, with cardiologists and surgeons questioning evidence gaps and appropriate patient selection standards. Meanwhile, meta-analysis data supports Impella heart pump cost-effectiveness during high-risk PCI procedures, reinforcing CMS reimbursement policies. These parallel debates highlight evolving regulatory scrutiny of cardiac device applications, impacting hospital procedural protocols and healthcare stakeholder decision-making across interventional cardiology settings.
Source(s):
Low-Risk Aortic Valve Replacement at the Crossroads of Evidence (JACC)
Cardiologists and Heart Surgeons Alarmed Over TAVR Use in Low-Risk Patients (Cardiovascular Business)
Impella Heart Pump Provides Value During High-Risk PCI (Cardiovascular Business)
Tags: #ALL

Opinion: NIH Ordered Me to Stop My ‘Dangerous’ Gain-of-Function Research

A UC Berkeley researcher challenges NIH’s halt of tuberculosis gain-of-function research, citing public health necessity. The directive affects academic medical research funding and may impact pharmaceutical development of TB treatments, with potential implications for hospital infection control protocols.
Source(s):
Opinion: NIH Ordered Me to Stop My ‘Dangerous’ Gain-of-Function Research (Stat)
Tags: #ALL

Heard on the Hill

Federal Government Shutdown Disrupts Healthcare Operations as Political Standoff Threatens Medicare, ACA Subsidies, and Agency Functions

The federal shutdown beginning October 1, 2025, significantly impacts healthcare with CMS retaining 53% of staff while maintaining Medicaid and CHIP funding. Republicans seek $1 trillion additional health program allocation while Democrats push healthcare funding negotiations. Senate Majority Leader Thune signals willingness to negotiate ACA subsidy extensions affecting millions of Medicare beneficiaries, targeting November 1 resolution aligned with ACA open enrollment. FDA and CMS face operational constraints affecting pharmaceutical approvals, device certifications, hospital reimbursements, and Medicare services. Both parties remain internally divided on resolution strategies, with millions facing potential health insurance cost spikes amid unprecedented political dynamics complicating traditional shutdown negotiations.
Source(s):
How John Thune sees the shutdown ending (POLITICO)
The Impact of the Federal Shutdown on Health Policy and Services (Becker’s Hospital Review)
Diverging Health Funding Proposals Amid Shutdown (The New York Times)
Unique Dynamics Characterize Current Federal Shutdown (POLITICO)
Looming Health Insurance Spikes for Millions Are at the Heart of Federal Shutdown (MedPageToday.com)
Government Shutdown’s Impact on Health Agencies and Social Security (The Hill)
Tags: #ALL

Explaining the G.O.P.’s Misleading Talking Point on the Looming Shutdown

Examination of Republican Party messaging strategies regarding the impending government shutdown and fact-checking of key claims.
Source(s):
Explaining the G.O.P.’s Misleading Talking Point on the Looming Shutdown (The New York Times)
Tags: #ALL

‘We Are Exhausted, Frustrated, and Sad’: Docs Vent During Meeting With Senator

Healthcare professionals expressed exhaustion and frustration to a U.S. Senator regarding systemic challenges impacting hospital operations, Medicare reimbursements, and FDA regulatory burdens. The meeting highlighted physician burnout and policy concerns affecting patient care delivery, with stakeholders calling for CMS reforms and reduced administrative requirements to address workforce sustainability issues.
Source(s):
‘We Are Exhausted, Frustrated, and Sad’: Docs Vent During Meeting With Senator (MedPageToday.com)
Tags: #PROVIDER, #HOSPITAL, #PAYER

The think tank driving health policy on Capitol Hill — and dividing Republicans

The Paragon Health Institute is influencing GOP health policy, advocating for significant Medicaid cuts and opposing enhanced ACA tax credits extension. This creates Republican divisions as some fear political backlash from policies affecting vulnerable populations, hospitals facing reduced reimbursements, and Medicare beneficiaries. The stance could impact CMS funding decisions and pharmaceutical access for low-income patients.
Source(s):
The think tank driving health policy on Capitol Hill — and dividing Republicans (POLITICO)
Tags: #ALL

Vance says he’ll talk Obamacare premiums with Schumer — but only with government open

Vice President JD Vance has proposed that Senate Democrats collaborate with Republicans on extending Affordable Care Act insurance subsidies, contingent upon the government reopening. He emphasized that the government shutdown, initiated on October 1, 2025, could impact up to 750,000 federal employees, while Democrats are pressing for a resolution before health insurance subsidies expire at the end of the year.
Source(s):
Vance says he’ll talk Obamacare premiums with Schumer — but only with government open (POLITICO)
Tags: #PAYER, #PATIENT

Notable Notes

Government Shutdown Could Delay Economic Data at a Critical Moment

Government shutdown threatens to delay critical economic data release at a pivotal time for economic analysis and policy decisions.
Source(s):
Government Shutdown Could Delay Economic Data at a Critical Moment (The New York Times)
Tags: #ALL

The Logic of Vaccine Hesitancy in a Broken Health System

The factors contributing to vaccine hesitancy among parents, emphasizing their preference for personal judgment over expert recommendations. It highlights systemic issues within the healthcare system that may undermine public trust in FDA-approved vaccinations, affecting pharmaceutical companies and hospital vaccination programs, though specific Medicare/CMS policy impacts or financial implications are not detailed.
Source(s):
The Logic of Vaccine Hesitancy in a Broken Health System (The New York Times)
Tags: #ALL

Trump administration backs off 100% pharma tariffs threatened to start today

The Trump administration has delayed proposed 100% pharmaceutical tariffs set for October 1, 2025, shifting towards negotiated commitments from drug manufacturers on U.S. infrastructure investment and pricing agreements. This policy pivot impacts Medicare costs, FDA-regulated imports, and hospital pharmaceutical procurement while affecting CMS reimbursement strategies and medical device supply chains.
Source(s):
Trump administration backs off 100% pharma tariffs threatened to start today (Stat)
Tags: #ALL

Joint Commission Launches Peer Learning Initiative for Hospitals

The Joint Commission will launch a 2026 peer learning initiative to enhance hospital performance through collaborative accreditation surveys. This CMS-aligned program will provide resources to improve care quality, strengthen Medicare compliance, and optimize patient outcomes across hospital systems through structured peer-to-peer knowledge sharing.
Source(s):
Joint Commission Launches Peer Learning Initiative for Hospitals (Becker’s Hospital Review)
Tags: #HOSPITAL

Unions Challenge Federal Layoff Plans Amid Shutdown Threats

Federal employee unions have filed a lawsuit against the Trump administration’s plans for mass reductions in force (RIFs) during a government shutdown risk.
Source(s):
Unions Challenge Federal Layoff Plans Amid Shutdown Threats (Government Executive)
Tags: #ALL

Maryland PDAB Advances Drug Cost Reduction Policies

The Maryland Prescription Drug Affordability Board (PDAB) is moving forward with developing upper payment limits for diabetes medications.
Source(s):
Maryland PDAB Advances Drug Cost Reduction Policies (InsideHealthPolicy Daily News)
Tags: #DRUG, #PAYER, #PATIENT

Europe Nears Sweeping Pharma Policy Overhaul

European regulators are finalizing comprehensive pharmaceutical policy reforms to enhance medicine access while preserving innovation incentives. The overhaul could significantly impact pharmaceutical companies, healthcare systems, and device manufacturers across the continent, with implications for regulatory frameworks and market access strategies that stakeholders are monitoring closely.
Source(s):
Europe Nears Sweeping Pharma Policy Overhaul (Stat)
Tags: #ALL

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