Federal Government Remains in Shutdown: No deal has been struck between Congressional leaders, marking this the tenth day of government shutdown. On Thursday, two funding deals, essentially copies of the original proposals, failed again in the Senate. At a Thursday Cabinet meeting, President Trump said his team will look for ways to “cut some very popular Democrat programs” during the shutdown and announced that total furloughs now top 750,000. CMS Administrator Mehmet Oz said Democrats must pass a funding measure before negotiations on ACA tax credit policies.  

Senate Aging Holds Hearing on Medical Supply Chains: On Thursday, the Senate Special Committee on Aging held a hearing on pharmaceutical prices, supply chain issues, and shortages. Committee Chair Rick Scott (R-FL) called on the Trump administration to immediately impose tariffs on “poor-quality and unsafe” imported generic drugs, as the Administration considers rates on branded products. Two Republican witnesses called on members to pass the PILLS Act, which would offer large tax incentives for U.S. pharma production and sales.

CMS Releases IRA Drug Price Negotiation Guidance: Last week, CMS released final guidance for the third cycle of the Medicare Drug Price Negotiation Program for the year 2028. A key decision regarded combination drugs, and CMS stated it is will not make changes to its existing policy. CMS will also use spending within Medicare Advantage plans when determining negotiated drugs and rates.  

Senate HELP Holds AI in Health Hearing: On Thursday, the Senate HELP Committee held a hearing on AI’s promise and risks in healthcare; several hearings of a similar topic have been held this Congress. Committee Chair Bill Cassidy (R-LA) seemed to set his own priorities on the topic, seeming eager not only to regulate, but also to have government-developed oversight technologies.

HHS OIG Finds Inadequacies in Behavioral Health Coverage: On Tuesday, HHS Office of the Inspector General published a report on behavioral health challenges in Medicare Advantage and Medicaid managed care plans. OIG found that many plans do not offer adequate behavioral health options and often list providers that are inactive. OIG says providers pull their coverage because of low reimbursement rates.  

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