Federal lawmakers are back in Washington, D.C., this week with just over three weeks left to finish funding the government before current spending laws run out on Jan. 30.
With a thinner majority than in 2025 for Republicans in the House of Representatives, spending negotiations come shortly after Affordable Care Act subsidies expired on Jan. 1, with millions of Americans expected to see their monthly insurance premiums rise or forgo coverage entirely.
In this environment, there has been some welcome recent news, and a series of looming threats to health care that we are working to fend off.
First, the positive developments:
- In late December, the United States District Court of Maine granted a preliminary injunction, ruling in favor of the American Hospital Association, Maine Hospital Association and four safety-net health systems in their lawsuit to challenge the 340B Rebate Model Pilot Program. The ruling blocked implementation of the federal Department of Health and Human Services 340B Rebate Model Pilot Program from going into effect nationwide on Jan. 1, 2026, pending further orders from the court. In its ruling, the court noted that the Health Resources and Services Administration’s approval of the nine manufacturer applications that comprise the 340B Rebate Model Pilot Program likely violated the Administrative Procedures Act because it did not appropriately account for impacts on 340B entities. An HHS request to stay the injunction was rejected by the United States Court of Appeals.
- Just before the new year, CMS released the much-anticipated Rural Health Transformation Program (RHTP) award announcements, and California did well, with an award of $233 million in the first year, the third most of any state. We will be working closely with the state in the coming days to learn more about the specifics, what initiatives will be funded, and how the Department of Health Care Access and Information will approach next steps.
Second, the potential threats:
- As federal lawmakers work to provide appropriations to avoid another government shutdown on Jan. 30, CHA will continue to advocate for the extension of the delay in proposed cuts to Medicaid DSH, and extensions for the Hospital at Home and telehealth programs that also expire on Jan. 30. We will also continue to oppose expansion of site neutral Medicare payment policies. CHA is working closely with our congressional delegation, along with the American Hospital Association to protect these vital programs and the resources they provide for patient care.
Spending negotiations could move quickly to avoid another government shutdown, and your voice may be needed with your congressional representatives so they understand how their decisions will affect health care in their own districts. Keep an eye on your inbox should the need arise for hospital leaders to engage in the coming weeks (CHA’s federal resources, including messages, infographics, and more are here).
