12 January 2026 This Week in Health Policy for January 12 Congress is in session this week and lawmakers will continue to negotiate on the enhanced ACA premium tax credits and the looming government funding deadline. Senate Health, Education, Labor and Pensions (HELP) Committee will hold an executive session to consider several health-related bills
House passes enhanced ACA tax credit extension. On Thursday (January 8), the House voted 230-196 to approve a three-year extension of the enhanced Affordable Care Act (ACA) premium tax credits (PTCs) that expired at the end of December, pursuant to a Democratic discharge petition joined by four Republicans in late 2025. The bill (H.R. 1834 ) passed with support from 17 Republicans, who cited the financial hardship facing their constituents as the reason for their favorable vote. The measure isn't expected to pass the Senate, as 60 votes are required and only four Republicans voted in favor of a similar Democratic bill to provide a three-year extension in December. However, the House-passed bill could help propel a Senate agreement. A group of senators including Sens. Susan Collins (R-ME), Bernie Moreno (R-OH), and Angus King (I-ME) are reportedly looking to have a proposal in the coming days that could include a two-year extension of the credits with an income limit and minimum payment requirement, along with an extended open enrollment period (which currently concludes on January 15), according to press reports. Other proposals, including directing subsidy funds to an HSA style tax-preferred account, may still be on the table after President Trump on Tuesday (January 6) told Republicans to be "flexible" on the Hyde Amendment and consider the proposal, encouraged them to reach a deal to address health care affordability. FY 2026 funding and health extenders. Government funding for nine of 12 annual appropriations bills expires January 30 (with the other three, including funding for the FDA, having received full-year funding in the November continuing resolution). On Thursday, the House approved a three-bill package that will go to the Senate next week, while appropriators continue negotiations on the remaining six bills, which includes FY 2026 funding for Labor, Health and Human Services (L-HHS). Lawmakers must also decide in the coming weeks how to address a series of health extenders that are scheduled to expire on January 30, including Medicare telehealth flexibilities, the Acute Hospital Care at Home (AHCAH) waiver, funding for community health centers, and more. ASPR publishes new strategic plan. On Friday (January 9), the Administration for Strategic Preparedness and Response (ASPR) released a new Strategic Plan for 2026—2029 that outlines the agency's goals for the next four years, including plans to strengthen state and local readiness, secure the U.S medical supply chain, address emerging health security threats, advance "gold standard" science, and execute rapid and efficient federal response. Johnson & Johnson reaches MFN deal. On Thursday (January 8), Johnson & Johnson in a press release announced its voluntary agreement with the Trump Administration on US drug prices and domestic manufacturing. The agreement is similar in structure to Most Favored Nation (MFN) deals reached by 14 other drug manufacturers last year. As part of the deal, Johnson & Johnson agreed to make its drug products available at discounted prices on TrumpRx.gov and to provide its products to Medicaid at prices "comparable" to other developed countries. Johnson & Johnson also announced it will build two new domestic manufacturing facilities as part of its previously announced $55 billion investment in US manufacturing and R&D. In exchange, the drugmaker said it has received an "exemption from US tariffs." Federal court pauses 340B rebate model. On Wednesday (January 7), U.S. Court of Appeals for the First Circuit denied the federal government's motion to stay a lower court's preliminary injunction that blocked the Health Resources and Services Administration (HRSA) from implementing the 340B rebate model pilot, which was set to take effect on January 1. The Court of Appeals requested an expedited briefing schedule, but the program remains on hold while litigation continues. Trump admin updates dietary guidelines. On Wednesday (January 7), HHS and the U.S. Department of Agriculture issued new dietary guidelines and a revised food pyramid. The new guidelines place an emphasis on protein and dairy, fruits and vegetables, and whole grains, and discourage consumption of added sugars and processed foods. HHS and USDA also launched a new website, realfood.gov, published appendices for the Scientific Foundation, and created a chart detailing recommended daily servings by calorie level. Click here for the press release. Click here for the fact sheet. FDA guidance removes regulatory barriers to certain health products. On Tuesday (January 6), the Food and Drug Administration (FDA) issued a guidance document that outlines the agency's plan to ease the regulation of certain clinical decision support software, including AI-enabled products. FDA also issued guidance on low-risk wellness products in which the agency says it will not regulate certain consumer wellness devices, such as those that measure blood pressure and oxygen levels. HHS updates childhood vaccine schedule. On Monday (January 5), the CDC issued a memo that revises the childhood vaccine schedule and reduces the number of recommended vaccines to 11. The vaccines removed from the list of recommended vaccines for all children include immunizations for respiratory syncytial virus (RSV), hepatitis A, hepatitis B, rotavirus, meningococcal disease, and influenza. The CDC now recommends some of those immunizations only for certain high-risk groups, while others will be provided based on "shared clinical decision-making" between a physician and the child's parents. CDC said that despite the change all immunizations recommended as of December 31, 2025 will continue to be fully covered by ACA exchange plans and federal insurance programs. Click here for the press release. Click here for the fact sheet. Appeals court strikes down indirect cost cap. On Monday (January 5), the First Circuit Court of Appeals upheld a district court ruling that blocked the NIH from implementing a policy to cap reimbursement rates for indirect research costs at 15% for grants. CMS makes Medicaid/CHIP vaccine reporting voluntary. On December 30, CMS sent a letter to state health officials said it will remove mandatory reporting requirements for pediatric and prenatal immunizations under Medicaid. DEA extends telehealth flexibilities. The Drug Enforcement Administration (DEA) issued a fourth extension of telemedicine prescribing flexibilities for controlled substances. The flexibilities, which are now extended through December 31, 2026, would have expired at the end of 2025. CMS awards RHT funding. On December 29, CMS announced that all 50 states received funding awards for 2026 under the Rural Health Transformation (RHT) Program. The awards ranged from $147 million to $281 million. States will not need to reapply for future funding years, but CMS may reallocate funding allotments if objectives are not met by states. CMS also announced the establishment of the Office of Rural Health Transformation within the Center for Medicaid and Children's Health Insurance Program Services. This office will oversee the RHT program, help states with implementation, provide technical assistance, and more. CMMI unveils GLP-1 drug pricing model. On December 29, CMS unveiled a new voluntary Innovation Center model that aims to increase access to GLP-1 medications and healthy lifestyle interventions. Under the Better Approaches to Lifestyle and Nutrition for Comprehensive hEalth (BALANCE) model, CMS will negotiate drug pricing and coverage terms between state Medicaid agencies, Medicare Part D plan sponsors, and GLP-1 manufacturers. The performance period for state Medicaid agencies is May 2026 to December 2031, and for Part D plans it is January 2027 to December 2031, although Part D beneficiaries are expected to have access to GLP-1s by July 2026 through a separate short-term demonstration that will serve as a bridge to BALANCE. CMS asked manufacturers and state Medicaid agencies and Part D plans to submit their intentions to participate by January 8. Click here for the request for manufacturer applications. Click here for the state Medicaid agency notice of intent. Click here for the Part D plan notice of intent. ASTP/ONC releases HTI-5 proposed rule. On December 29, the HHS Assistant for Technology Policy/Office of the National Coordinator for Health IT (ASTP/ONC) published the Health Data, Technology, and Interoperability: ASTP/ONC Deregulatory Actions to Unleash Prosperity (HTI-5) proposed rule. HTI-5 proposed rule proposes to remove or revise more than half of the current criteria for health IT certification, add new language related to information blocking, and revise conditions and maintenance of certification requirements for health IT developers. Comments are due February 27. The agency also issued a proposed rule to withdraw non-finalized provisions of the 2024 HTI-2 proposed rule. House Energy and Commerce Health Subcommittee held a hearing on "Legislative Proposals to Support Patient Access to Medicare Services." On Thursday (January 8), the Subcommittee held a hearing during which members discussed 10 bills, including bills to address Medicare reimbursement cuts to laboratory services and prohibit CMS from implementing the WiSER model testing prior authorization in traditional Medicare.
Document ID: 2026-0165 | |||
