OMB grant rule raises compliance questions for hospital federal funding
Hospitals that receive federal grants are among the entities that would face new requirements under a Trump administration proposed rule. The Office of Management and Budget (OMB) issued the rule, which would increase federal oversight of how grantees apply for and use funds. The intent is for the rule to take effect Oct. 1, covering…
CY 2027 Home Health Prospective Payment System Proposed Rule Summary
HFMA presents a detailed summary of the proposed rule that would update the payment rates for home health agencies for calendar year 2027.
MedPAC sees no broad Medicare Advantage hit to hospital finances
Recent growth in Medicare Advantage (MA) enrollment is not associated with an adverse impact on the finances of hospitals and post-acute care providers, based on findings of an observational study by the Medicare Payment Advisory Commission (MedPAC). However, the shift of beneficiaries from traditional Medicare to MA is affecting providers operationally and could be skewing…
CMS’s 2027 OPPS proposed rule would cut 340B and imaging payments
Medicare payment for 340B drugs and imaging services would incur notable reductions under CMS’s 2027 proposed rule for the hospital Outpatient Prospective Payment System (OPPS) and ambulatory surgical centers (ASCs). Payment for many services would increase due to budget neutrality requirements, but the net impact of the various changes projects to be negative for most…
Medicaid work requirement lawsuit targets CMS exemption rules
A coalition of more than 20 states filed suit to vacate key parts of recent regulations implementing the Medicaid work requirement, arguing that CMS overstepped its bounds. Litigation filed in the U.S. District Court for Massachusetts states that key parts of a recently issued interim final rule with comment period (IFR) deviate from congressional intent…
White House zooms in on hospital contracts
The Trump administration is tightening scrutiny of provisions of contracts of hospitals with payers, which could spur additional lawsuits or legislation, say attorneys. The White House Council of Economic Advisers issued a June 18 memo laying out its case against health systems’ use of several contract provisions focused on: The memo couched a nationwide ban…
ACA marketplace enrollment decline puts coverage affordability in focus
The Trump administration released updated 2026 enrollment figures for Affordable Care Act (ACA) marketplace plans, arguing that the year-over-year decrease resulted from efforts to crack down on fraud. Enrollment fell from 22.1 million at the end of 2025 to 19.2 million in February 2026.a The drop-off largely reflects reductions in improper enrollment rather than in…
Medicare Drug Price Negotiation Program Proposed Rule Summary
HFMA provides a detailed summary of the proposed rule to codify the Medicare Drug Price Negotiation Program (“Negotiation Program”) and establish certain new policies for the Negotiation Program and the Medicare Prescription Drug Benefit Program as required by the Inflation Reduction Act of 2022 (IRA, P.L. 117-169).
Medicare funding projections sharpen concerns over access and payment rates
The latest annual report on the state of Medicare funding reflects a conundrum for healthcare industry stakeholders. Medicare spending on healthcare services is on an increasingly difficult fiscal track, projected to rise from $1.2 trillion in 2025 to $2 trillion in 2035. Yet as acknowledged in the report issued this month by the Medicare trustees,…
FY27 HHS budget proposal includes rural health gains, CDC cuts
HHS discretionary funding in FY27 would decrease by close to 4% from current appropriations, according to a budget proposal that advanced out of the House Appropriations Committee this month. The $110.8 billion allocation would be roughly $4 billion lower than FY26 enacted funding. The budget appears to preserve more funding for traditional programs, relative to…