Health Care Checkup

September 5, 2025

THE BIG PICTURE: KEY CONGRESSIONAL & EXECUTIVE BRANCH DEVELOPMENTS


On Tuesday, the House Appropriations Labor, Health and Human Services, Education and Related Agencies Subcommittee advanced the Fiscal Year 2026 Labor, Health and Human Services, Education, and Related Agencies Appropriations Act in an 11-7 party-line vote. If enacted, the legislation would reduce HHS’ funding by $7 billion to $108 billion for fiscal year 2026.


On Thursday, the Senate Finance Committee held a hearing on the president’s health-care agenda, where Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. testified. Senators raised questions on vaccine policy, drug pricing, rural hospital support, and agency transparency, highlighting both policy priorities and oversight concerns.


On Thursday, the Department of Health and Human Services (HHS) issued new guidance expanding access to catastrophic health insurance coverage for individuals who do not qualify for premium tax credits (APTC) or cost-sharing reductions (CSR). Starting November 1, 2025, with the start of open enrollment, consumers will be able to qualify for catastrophic health coverage based on need.

What to Expect Next Week:



On Tuesday, the House Oversight Health and Financial Services Subcommittee will hold a hearing on children’s health. Also on Tuesday, the House Appropriations Committee will hold a full committee markup of the FY26 Labor, Health and Human Services, Education, and Related Agencies Bill.


In the Senate, on Tuesday, the Homeland Security and Governmental Affairs Subcommittee on Investigations will hold a hearing on the corruption of science and public perception of vaccines.

DEEP DIVE

Congressional:


House Appropriations Subcommittee Advances Labor-HHS Bill

On Tuesday, the House Appropriations Labor, Health and Human Services, Education and Related Agencies Subcommittee advanced the Fiscal Year 2026 Labor, Health and Human Services, Education, and Related Agencies Appropriations Act in an 11-7 party-line vote. If enacted, the legislation would reduce HHS’ funding by $7 billion to $108 billion for fiscal year 2026. The legislation maintains $48 billion in funding for the NIH and includes $515 million for rural health and increased funding for rural hospitals. It provides $100 million for HHS Secretary Robert F. Kennedy Jr.’s Make America Healthy Again (MAHA) initiative. The proposed funding reduction differs from the Trump administration’s budget proposal, which requested a $31.3 billion funding reduction, but maintained the Trump administration’s proposal for consolidating funding for prevention of sexually transmitted infections and infectious diseases, including tuberculosis, and the opioid epidemic into a new grant. It also restricts funding from going toward programs that provide abortion services or advance diversity, equity, and inclusion initiatives. The Senate proposed $116.6 billion for the HHS in its legislation. The legislation now goes to the full House Appropriations Committee, which is tentatively expected to mark up the bill on September 9. Read the bill text here, the Republicans’ bill summary here, and the Democrats’ bill summary here.

 

Senate Finance Committee Advances Two Health Nominees

On Thursday, the Senate Finance Committee advanced two health nominees, Gustav Chiarello as Assistant Secretary for Financial Resources for the Department of Health and Human Services and Michael Stuart as General Counsel, both in a 14-13 party-line vote. Chiarello would be the chief financial adviser to Kennedy. He most recently was senior special counsel to the House Judiciary Committee, chaired by Rep. Jim Jordan (R-OH). Chiarello has repeatedly vowed to “follow the law” in spending money appropriated by Congress. Stuart, a former Republican state senator from West Virginia, would oversee the legal strategy behind Kennedy. The nominations now head to the full Senate for a vote.

 

House Energy & Commerce Committee Probes the Growing Use of AI in the Nation’s Health Care System

On Wednesday, the House Energy and Commerce Health Subcommittee held a hearing on artificial intelligence’s (AI) role in transforming American health care. During the hearing, members' questioning focused on how to leverage artificial intelligence in health without it taking over functions that only humans should carry out, like making diagnoses and providing mental health resources. Subcommittee Chair Rep. Morgan Griffith (R-VA) praised the administration for streamlining regulations and using the technologies in a responsible way. However, full Committee Ranking Member Frank Pallone Jr. (D-NJ) expressed concern over President Donald Trump’s revocation of a Biden-era executive order to increase oversight and development of AI. Read Mehlman’s hearing summary here.

 

Senate Finance Committee Hears from HHS Secretary Kennedy on President’s Health Care Agenda, Faces Tough Questions and Criticism

On Thursday, the Senate Finance Committee held a hearing on the president’s health-care agenda, where Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. testified. The hearing comes just over a week after the firing of Centers for Disease Control and Prevention (CDC) Director Susan Monarez and the resignation of multiple CDC leaders. During the hearing, Senators pressed Kennedy on vaccine policy, including his decision to restrict COVID-19 vaccine recommendations for healthy adults under 65, the dismissal of CDC vaccine advisory board members, and the cancellation of mRNA research contracts. Kennedy noted that he fired Monarez because the agency desperately needed change, stating that "It's imperative that we remove officials with conflicts of interest and catastrophically bad judgment and political agendas.” In exchanges with senators, Kennedy also maintained that “anybody” can get a COVID-19 vaccine if they want one. Senators Elizabeth Warren (D-MA) and Bill Cassidy (R-LA) both cited concerns from doctors and pharmacists about their legal authority to give them now that the FDA has narrowed the vaccines' label. Members also raised concerns about exemptions for high-cost cancer drugs from Medicare negotiation under the One Big Beautiful Bill, rural hospital financing, and PBM regulation. Kennedy stated his priorities were restructuring agency oversight, expanding rural health funding, and advancing chronic disease prevention while committing to transparency in regulatory processes. Before the hearing, Eleven Democratic members of the Senate Finance Committee also called on Robert F. Kennedy Jr. to resign from his position as secretary of the U.S. Department of Health and Human Services. Read Mehlman’s hearing summary here.

 

Congressional Budget Scorekeeper Projects Coverage Reductions, But Also Lower Improper Subsidy Claims Under H.R. 1

On Tuesday, House Ways and Means Republicans Jason Smith (R-MO), Jodey Arrington (R-TX), and Brett Guthrie (R-KY) released a statement citing new CBO findings on H.R. 1 and a June 2025 HHS rule, arguing that Democrats had overlooked fraud and abuse in federal health programs. According to CBO, the combined changes from the law and rule would increase the number of uninsured Americans by about 2.1 million in 2034, mainly due to tighter eligibility for premium tax credits affecting certain noncitizens, low-income immigrants, those unable to verify income, and people limited by new enrollment rules for the ACA’s marketplace. While some losing subsidies could still purchase coverage, about 1.8 million are projected to remain uninsured, including 400,000 with employer-based coverage deemed unaffordable. At the same time, CBO reported that improper subsidy claims have grown in recent years, and the provisions are expected to reduce them by hundreds of thousands, though some eligible individuals may forgo coverage because of added verification steps. Read the press release here and the CBO letter here


Notable Bills Introduced:


Representatives Kiggans, Suozzi Lead Premium Tax Credit Extension Bill

On Thursday, Representatives Jen Kiggans (R-VA) and Tom Suozzi (D-NY) introduced the Bipartisan Premium Tax Credit Extension Act. Under current law, the enhanced Premium Tax Credit, established by the Affordable Care Act (ACA), expanded during COVID under the American Rescue Plan Act (ARPA), and later extended through the Inflation Reduction Act (IRA), is set to expire at the end of this year. The bill would extend for one year the health care Premium Tax Credits from the IRA for 2026. Read the press release here and the bill here.

 

Senators Daines, Heinrich, King Introduce Bill to Support Medical Students

On Thursday, Senators Steve Daines, Martin Heinrich (D-NM), and Angus King (I-ME) introduced the Fair Access in Residency Act. This bill would address disparities and barriers within Medicare-funded Graduate Medical Education (GME) programs that often exclude or impose undue burdens on Doctors of Osteopathic Medicine (DOs). The FAIR Act would require all hospitals participating in GME programs to annually report to HHS the number of DO and medical doctor (MD) applicants and accepted residents, and to affirm that DO applications and the COMLEX licensing exam are accepted for consideration of residency. Read the press release here and the bill here.

 

Senators Collins, Kaine Introduce Geriatrics Workforce Improvement Act

On Wednesday, Senators Susan Collins (R-ME) and Tim Kaine (D-VA) introduced the Geriatrics Workforce Improvement Act to reauthorize funding for the Geriatrics Workforce Enhancement Program (GWEP) and the Geriatrics Academic Career Awards (GACA) at a combined $48.2 million per year over the next five years. Both programs were last authorized in 2020 as part of the CARES Act and are set to expire at the end of this month. Read the press release here and the bill here.

 

Representatives Carter & Dingell Introduce Bill Extending Telehealth Access for Patients

On Tuesday, Representatives Earl L. “Buddy” Carter (R-GA) and Debbie Dingell (D-MI) introduced the Telehealth Modernization Act of 2025, a bill to extend telehealth flexibilities for seniors on Medicare through fiscal year 2027. A Senate companion bill is being led by Sens. Tim Scott (R-SC) and Brian Schatz (D-HI). Read the press release here and the bill here.

 

Representative Van Duyne Leads Bipartisan Legislation to Protect Seniors’ Access to Long-Term Care Pharmacies

Last week, Representatives Beth Van Duyne (R-TX), Brad Schneider (D-IL), Buddy Carter (R-GA), Sharice Davids (D-KS), and Deborah Ross (D-NC) introduced the Preserving Patient Access to Long-Term Care Pharmacies Act, bipartisan legislation to protect access to essential medications and pharmacy services for seniors and other long-term care (LTC) residents in nursing homes, assisted living, and similar facilities. The legislation would ensure that long-term care (LTC) pharmacies can continue serving nursing home and assisted living residents by establishing a temporary supply fee for negotiated Part D drugs. Read the press release here and the bill here.

 

Representative Fitzpatrick Leads Bipartisan Bill to Expand Home Infusion Access Under Medicare

Last week, Representatives Brian Fitzpatrick (R-PA), Neal Dunn, M.D. (R-FL), and Darren Soto (D-FL) introduced the Joe Fiandra Access to Home Infusion Act of 2025, bipartisan legislation to expand Medicare coverage of home infusion therapies by ensuring that external infusion pumps and certain non-self-administerable drugs are covered as Durable Medical Equipment (DME). Read the press release here and the bill here

 

Executive Branch:


HHS Expands Access to Catastrophic Health Insurance Plans 

On Thursday, the Department of Health and Human Services (HHS) issued new guidance expanding access to catastrophic health insurance coverage for individuals who do not qualify for premium tax credits (APTC) or cost-sharing reductions (CSR). Starting November 1, 2025, with the start of open enrollment, consumers will be able to qualify for catastrophic health coverage based on need. Catastrophic plans generally have lower monthly premiums, are designed to protect consumers from very high medical costs in the event of serious illness or injury, and are required to cover three primary care visits pre-deductible. Read the press release here and the fact sheet here.


HHS Announces Crackdown on Health Data Blocking

On Wednesday, the Department of Health and Human Services (HHS) announced that Secretary Robert F. Kennedy, Jr. has directed HHS to increase resources dedicated to curbing information blocking. HHS will take an active enforcement stance against health care entities that restrict patients’ engagement in their care by blocking the access, exchange, and use of electronic health information. Read the press release here.


HHS Announces Final Rule Easing Approval of Physician-Approved Treatments and Informing Patients of Lowest Cost Prescription Drugs

On Tuesday, the Department of Health and Human Services (HHS) announced the Health Data, Technology, and Interoperability: Electronic Prescribing, Real-Time Prescription Benefit and Electronic Prior Authorization (HTI-4) Final Rule. Starting October 1, 2025, the final rule will require that patients have access to real-time prescription drug pricing information, including cost comparisons, expected out-of-pocket expenses, and prior-authorization requirements. The rule mandates that providers using certified health IT systems must be able to submit prior authorizations electronically, choose medications that align with a patient’s insurance coverage, and exchange e-prescription data with pharmacies and insurers. Read the press release here and the final rule here.

 

HHS Secretary Kennedy Sets CDC Priorities in Op-Ed After Leadership Shake-Up

On Tuesday, Health and Human Services Secretary Robert F. Kennedy Jr. outlined priorities in a Wall Street Journal opinion piece, stating that the Centers for Disease Control and Prevention (CDC) should return its focus to tracking infectious diseases and pandemic response. Kennedy wrote that priorities include “enhancing scientific rigor” through “ensuring America leads the world in safe, effective vaccines and trusted guidance.” The opinion piece comes a week after Kennedy fired CDC director Susan Monarez after a confrontation over vaccine policy. “The American people elected President Trump — not entrenched bureaucrats — to set health policy,” Kennedy wrote. Other priorities outlined by Kennedy in the op-ed include threat protection from infectious diseases through surveillance and the “Biothreat Radar Detection System,” which is currently not in place and is slated for inclusion in next year’s budget, as well as investing in disease detectives and epidemiologists. Kennedy cited the CDC’s response to the COVID-19 pandemic as the reason for the overhaul, including advocating for masks and social distancing. Read the opinion piece here

CONGRESSIONAL HEARINGS & EVENTS

House:


House Committee on Appropriations – Markup

“Fiscal Year 2026 Labor, Health and Human Services, Education, and Related Agencies Bill”

Tuesday, September 9, at 11:00 AM

 

House Committee on Oversight and Government Reform, Subcommittee on Health Care and Financial Services – Hearing

“Better Meals, Fewer Pills: Making Our Children Healthy Again”

Tuesday, September 9, at 2:00 PM

 

Senate:


Senate Homeland Security and Governmental Affairs, Subcommittee on Investigations – Hearing

“To examine how the corruption of science has impacted public perception and policies regarding vaccines.”

Tuesday, September 9, at 2:00 PM

ADMINISTRATION ANNOUNCEMENTS

Centers for Medicare & Medicaid Services

Food and Drug Administration

National Institutes of Health

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Washington, DC 20005
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