Policy Digest — September 21, 2026

Introduction
The White House moved toward a veto over NIH grants this week, and new records showed how hastily Medicare launched its AI prior-authorization pilot.

Weekly Spotlight

The White House Reaches for NIH’s Grant Decisions

The White House is drafting an executive order that would create an external committee with power to veto National Institutes of Health grants that do not align with administration priorities, The New York Times reports. The order would extend political control over billions of dollars in research funding, and the draft was discussed at a contentious White House meeting Friday.

The courts are already weighing how far that control can reach. Researchers represented by the ACLU and Protect Democracy filed a class action Sept. 16 alleging NIH screens grant applications and active grants against a list of 235 forbidden keywords, including equity, gender and climate change, in violation of the First Amendment. The plaintiffs, 13 named and four anonymous, seek reinstatement of terminated grants, and STAT notes a ruling in their favor would reach every researcher affected by the term searches.

At the same time NIH is widening who can receive its money. The agency opened its research facilities funding, previously limited to universities and nonprofits, to local governments, federal agencies, community organizations and for-profit businesses STAT reports.

The infrastructure around federal research is also exposed. Senate Democratic appropriators say HHS plans to let tens of millions of dollars appropriated for the Agency for Healthcare Research and Quality expire Sept. 30, stranding its support for the U.S. Preventive Services Task Force, according to Inside Health Policy. Against that backdrop, an opinion piece in STAT argues NIH’s budget should double to $100 billion a year.

Tags: #DRUG #DEVICE #PROVIDER


Centers for Medicare and Medicaid Services (CMS)

Records Show a Rushed WISeR Launch as CMS Holds It Up as a Model

More than a thousand pages of records obtained by the Electronic Frontier Foundation through a Freedom of Information Act lawsuit show CMS launched its WISeR AI prior authorization pilot in January 2026 in six states over a vendor’s warning that a working product by launch was unrealistic. The records show prior authorization responses delayed beyond 72 hours, one request unanswered for 83 days, and two vendors denying 5,944 requests in the first three months. The CMS Innovation Center’s director has said WISeR should serve as a model for other lines of business, and on Sept. 16 HHS deputy secretary nominee Chris Klomp defended it against Senate Democrats who want it canceled, promising vendor-level accounting.

Tags: #PROVIDER #PAYER #PATIENT

Medicaid Roundup: Financing Cuts, Eligibility Rules and a 50-State Drug Deal

Pressure on state Medicaid programs arrived from three directions this week: federal financing cuts moving toward state budgets, the rules that will decide who keeps coverage under work requirements, and a drug-pricing model every state has now joined. KFF finds state revenue grew 2% in FY 2026 and fell in 20 states, with Medicaid at 31% of total state spending, as state-directed payment cuts begin with an $8.7 billion reduction in January 2028. CMS released roughly $12 billion in supplemental Medicaid funding for Texas hospitals that it had frozen Sept. 1, and President Trump announced Sept. 18 that all 50 states will join the Medicaid GENEROUS model, though experts say its claimed savings cannot be checked.

Tags: #PATIENT #PAYER #HOSPITAL

Medicare Expands ACCESS to Heart Failure and COPD

CMS will add heart failure, COPD, substance use disorder and tobacco cessation tracks to its ACCESS Model in spring 2027, paying participants monthly for managing chronic conditions with digital tools against measured outcomes. More than 160 organizations have enrolled, among them Dexcom, Whoop, Headspace and Welldoc. Agency officials are also signaling interest in cross-payer alignment and a possible Medicaid expansion of the 10-year model.

CMS STAT (subscription) Fierce Healthcare MedTech Dive

Tags: #DEVICE #PAYER #PATIENT

Medicare Advantage Under Strain

Medicare Advantage now covers more than half of eligible beneficiaries, and for a growing number of health systems participation has become a losing proposition either way: stay in and absorb losses, or exit and cede enrollment in Medicare’s fastest-growing segment. Some systems are dropping MA contracts as denial rates rise, while CMS told insurers it may let MA plans expand their service areas midyear when they acquire a struggling competitor.

Tags: #PAYER #HOSPITAL

SCAI Reads the Final TAVR Coverage Decision

The Society for Cardiovascular Angiography and Interventions’ analysis of the final transcatheter aortic valve replacement National Coverage Determination emphasizes that the memo eliminates hospital procedural volume requirements and permits single-operator procedures, with operators drawn from any combination of interventional cardiologists and cardiac surgeons. SCAI says it will work with CMS on implementation and take part in the separate coverage analysis for TAVR in aortic regurgitation.

SCAI

Tags: #DEVICE #PROVIDER #HOSPITAL

Also in CMS

Documents obtained through Freedom of Information Act lawsuits show the administration’s confidential drug-pricing agreements with Pfizer and Eli Lilly include undisclosed terms, among them inducements to raise prices overseas and promised protection from tariffs, and a Lancet modeling study finds the proposed Medicare most-favored-nation policies could raise prices and slow drug launches worldwide. Network Health went live early with Epic’s prior authorization API ahead of CMS’s Jan. 1, 2027 interoperability deadline. A long-term care pharmacy trade group wants CMS to use an upcoming request for information to set separate contracting guidance for LTC pharmacies, including reimbursement rates and network adequacy standards.

Tags: #DRUG #PAYER #PROVIDER


Food and Drug Administration (FDA)

FDA Opens Its Expedited IND Pilot

FDA began accepting applications Sept. 15 for its Expedited Investigational New Drug Pilot, run under HHS’s Operation TrialBlazer, which will select up to 10 qualified research institutions to work with drug sponsors for rolling review of application components. The aim is to shorten a U.S. path to first-in-human trials that can take up to two years, against under 70 days in Australia, and applications close Oct. 30, 2026. The agency downplayed concerns from some academic medical centers that the pairing model could create conflicts of interest.

FDA BioPharma Dive STAT (subscription) Inside Health Policy

Tags: #DRUG

FDA’s Rebuild Runs Into the Cuts That Made It Necessary

FDA is trying to hire more than 2,000 workers after the April 2025 DOGE cuts eliminated 3,500 positions, but the push is delayed because those same cuts left the agency’s centralized hiring center short-staffed. The Center for Devices and Radiological Health, which held relatively stable through the turbulence, now faces its own test as hiring ramps back up.

STAT (subscription) Medtech Insight (subscription)

Tags: #DRUG #DEVICE

FDA’s Evidence Commitments Under Scrutiny

Three items this week bear on how much evidence stands behind FDA decisions. A KFF Health News investigation found drugs and devices approved years ago still have not completed FDA-mandated postmarket safety studies, and patient advocacy groups say the industry-negotiated PDUFA VIII draft weights approval speed over review quality. FDA’s own analysis of first-cycle complete response rates from FY2008 through FY2024 gives that debate a benchmark.

Tags: #DRUG #DEVICE #PATIENT

Also in FDA

A new FDA rare disease strategic plan carries forward regulatory goals backed by former commissioner Marty Makary, and Karim Mikhail, now permanent director of the Center for Biologics Evaluation and Research, is putting rare disease access and patient engagement at the center of his agenda. CDRH launched a Regulatory Reliance Portal for regulatory authorities building medical device reliance programs, and issued draft guidance on an electronic submission template for premarket approval applications, with comments due Nov. 17.

Tags: #DRUG #DEVICE


Department of Health and Human Services (HHS)

Vaccine Policy: Children Wait for Covid Shots as Kennedy Promises More Changes

Three weeks after FDA approved updated Covid vaccines, about half of U.S. children still cannot get them because doses have not been made available through the Vaccines for Children program, which supplies free vaccines to eligible children, including those who are uninsured or underinsured. Health and Human Services Secretary Robert F. Kennedy Jr. told Children’s Health Defense on Sept. 17 that the department will keep pursuing major vaccine policy changes and continue studying alleged vaccine injuries.

Tags: #PATIENT #PROVIDER

Administration Sets Out How It Will Enforce Mental Health Parity

The Labor Department issued guidance on how the administration will enforce mental health parity requirements, focusing on areas including pretreatment claims reviews and insurer network adequacy, with a proposed regulation expected by December. The administration has declined to enforce a Biden-era rule that required plans to regularly evaluate their provider networks, payment rates and other factors.

Axios

Tags: #PAYER #PATIENT #PROVIDER

Also in HHS

Secretary Kennedy named eight new members to the U.S. Preventive Services Task Force, including specialists and a health care finance expert as chair, raising the question of whether cost-effectiveness will enter a panel that has excluded it. ARPA-H launched an autism research project that will collect personal health information from people with autism. New OPTN rules for donation after circulatory death take effect Nov. 18. The administration is also putting federal resources behind AI agents that diagnose patients and prescribe treatment, a push some officials worry is outrunning the evidence.

Tags: #PATIENT #PROVIDER


Heard on the Hill

Ways and Means Advances a Bill Changing How MedPAC Compares Medicare Advantage

Ways and Means Republicans advanced the Apples to Apples Comparison Act on a party-line vote Sept. 16, requiring CMS to publish more data for MedPAC’s comparisons of Medicare Advantage and fee-for-service spending. MA plans backed the bill, and Democrats say it is designed to make plans look better. MedPAC currently estimates Medicare pays 14% more per MA enrollee than traditional Medicare would cost, or $76 billion in total.

STAT (subscription) Inside Health Policy

Tags: #PAYER

No Surprises Act: Employers and Think Tanks Press for a Rewrite

Pressure to rewrite the No Surprises Act’s arbitration process widened beyond providers and insurers this week. Large employers told Congress arbitration is driving up premiums, Paragon Health Institute proposed eliminating federal arbitration for elective care, and a Health Affairs analysis put the process’s four-year cost at $22.4 billion, a figure provider groups dispute. HHS certified a 17th arbitration entity as dispute volume outstrips capacity, and Congress has no consensus on a fix.

Tags: #PAYER #PROVIDER #HOSPITAL

Physician Pay Reform Gains Momentum at E&C Health Hearing

The bipartisan doctors caucuses’ Medicare physician pay reform bill drew widespread support from lawmakers and witnesses at the House Energy and Commerce health subcommittee’s Sept. 15 hearing, building momentum as committee leaders are pressed to include it in a markup. The same hearing took up rural hospitals’ capacity to meet cybersecurity demands.

Inside Health Policy Becker’s Hospital Review

Tags: #PROVIDER

Senate Health Nominations: Klomp Testifies, Overton Is Next

HHS deputy secretary nominee Chris Klomp faced two days of questioning before the Senate Finance and HELP committees, where senators pressed him on authority he already exercises, including negotiating the administration’s drug-pricing deals. The HELP Committee holds its hearing on FDA commissioner nominee Heidi Overton Sept. 24, and Chairman Bill Cassidy says he needs to hear her call President Trump’s claim that the measles vaccine is lethal absurd.

Tags: #ALL

Also on the Hill

House Democrats are weighing a Medicare for All agenda should they retake the chamber, while Senate Finance ranking member Ron Wyden explores a narrower Medicare-type public option.

Tags: #PAYER #PATIENT


Notable Notes

Census Finds the Uninsured Rate Stuck at 7.9% as Coverage Losses Loom

New Census Bureau data show 26.7 million people, or 7.9% of the population, were uninsured in 2025, statistically unchanged from 2024, with Medicare enrollment up and Medicaid enrollment down. The Bureau did not release the American Community Survey on schedule, leaving state and child uninsured estimates unavailable. Projections point the other way for young adults: the Urban Institute estimates up to 2.3 million could lose Medicaid by 2028, and more than 1 million could lose marketplace coverage that year.

Tags: #PATIENT #PAYER

Hospital Margins Slip to 1.4% as Elective Volume Softens

Kaufman Hall put hospital operating margins at 1.4% in July, down from 2.2%, as bad debt and charity care rose and elective surgery slowed. HCA’s chief financial officer tied softer elective volume to patients losing exchange coverage, even as health system CEOs expect the shift to outpatient care to continue into 2027.

Tags: #HOSPITAL

Structural Heart Evidence Roundup: Redo TAVR, Valve-in-Valve and Access

This week’s structural heart literature centered on what happens after a first transcatheter valve. A U.S. registry found redo-TAVR with self-expanding valves carried low complication rates and outcomes comparable to native-valve TAVR, and a new viewpoint proposes a common language for valve-in-valve planning. Other work compared TAVR with medical therapy in paradoxical low-flow, low-gradient stenosis and described a workflow for surfacing the barriers that delay timely TAVR.

Tags: #DEVICE #PROVIDER

Congenital Heart Care: Follow-Up, Mental Health and Outcomes

Research this week measured where children with congenital heart disease fall out of care. A single-center review of 1,060 patients found 46% missed two or more cardiology appointments; missed visits rose with neighborhood deprivation, and patients who missed more visits had more emergency visits and admissions. Mental health disorders are the most common comorbidity in congenital heart disease, yet many children do not receive adequate care for them.

Tags: #PATIENT #PROVIDER

Also Worth Noting

Ten new medical schools were announced in 2026 without matching growth in residency slots, against a projected shortage of 141,160 physicians by 2038, and the accrediting body for residents is weighing shorter rest periods between shifts. The World Health Organization reports more than 3 in 10 physicians in high-income countries are 55 or older. A federal judge blocked the administration’s four-year visa cap for graduate students and postdoctoral researchers.

Tags: #PROVIDER #HOSPITAL


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