GOP Reconciliation Bill Passes House: On Thursday morning, House Republicans passed their sprawling tax, immigration, energy, and health reconciliation package via a 215-214 vote. The package, which the Senate will now begin to fully consider, was passed after a 42-page amendment that the House Rules Committee approved after spending more than 21 hours on a markup. Revisions include moving up the start date of Medicaid work requirements from 2029 to 2026 and expanding the criteria for states that could lose a portion of their federal payments if they offer coverage to undocumented people. The late changes were also significant to Affordable Care Act plans, as new text would appropriate funding for the cost-sharing reductions as of January 1.

White House Unveils MAHA Report: On Thursday, President Trump was joined by HHS Secretary Robert F. Kennedy Jr. to release the first Make America Healthy Again Commission report. The report, quite expectedly, focused on rises of chronic disease in the U.S., prescriptions for children, and pharmaceutical company influence on health research and D.C. policy. A second report is expected later this year.

HHS Secretary Kennedy Questioned at Multiple Budget Hearings: In the last two weeks, HHS Secretary Kennedy appeared before the Senate HELP and House and Senate Appropriations Committees to answer questions regarding the FY2026 HHS budget request on ongoing reorganization at the department. Legislators on both sides of the aisle defended SAMSHA, NOISH, NIH, and Community Health Center funding that has either been disrupted or requested for cut in the new fiscal year. Leading Democrats also expressed frustration with the “skinny budget” documentation provided by the Administration, suggesting it pointed to incompetence or unseriousness.

HELP Committee Leadership Spar Over MFN Legislation: On Wednesday, Senate HELP Committee Ranking Member Bernie Sanders (I-VT) reintroduced his bill on “most favored nation” policy to link U.S. prescription drug prices to prices in other wealthy nations, asking to fast-track the measure through unanimous consent and consider his bill on the Senate floor. Sen. Sanders cited President Trump’s recent executive order on MFN policy as grounds for unanimous consent but was blocked by HELP Chair Bill Cassidy (R-LA), who said his office is formulating legislation and invited Sen. Sanders’ collaboration.  

CMS to Expand Medicare Advantage Audits: On Wednesday, CMS Administrator Dr. Mehmet Oz announced his agency will be auditing all newly initiated Medicare Advantage contracts and is taking significant steps to clear a backlog of risk adjustment data validation audits. The CMS team tasked with the data backlogs, which Oz said can easily lead to waste and fraud, will increase from 40 to over 1,000 employees. MedPAC estimates MA overbilling may cost CMS up to $43 billion annually.  

Court Rules HRSA Have Final Rulemaking Power on 340B Rebate Model: Last week, Judge Dabney Friedrich of the District Court for the District of Columbia ruled that HRSA has the right to demand drug companies seek approval from before launching rebate payment models. The decision, seen as a win for hospitals, halts drugmakers from replacing upfront 340B drug discounts with back-end rebates until HRSA makes a policy decision.

FDA Aims to Streamline State Drug Importation Approvals: On Wednesday, the FDA announced it will take additional steps to help states get drug importation programs approved so they can import cheaper Canadian pharmaceuticals, including helping with cost analyses and letting states submit draft plans for pre-review and meet with the agency. FDA’s actions follow up President Trump’s May 12 executive order calling the agency to expand use of drug importation programs.