On January 20, congressional leaders released legislative text of a bipartisan, bicameral compromise that would fund the Department of Health and Human Services (HHS) for fiscal year (FY) 2026 and extend several health care programs, including Medicare telehealth flexibilities. The agreement does not include funding to revive the Affordable Care Act's enhanced premium tax credits that expired on December 31. It also does not include policies in President Trump's "Great Healthcare Plan" to expand tax-preferred accounts and codify his Most Favored Nations deals, however it does include additional transparency provisions for pharmacy benefit managers (PBMs) and hospitals.

The HHS appropriations and health extenders bill was released as part of a deal that includes funding for the departments of Defense; Labor and Education; Transportation, Housing and Urban Development; and Homeland Security. Congress has until January 30 to pass the package to avoid a partial federal shutdown. House leaders are expected to hold a vote on the package later this week. If passed, the Senate would then be expected to take up the package next week when it returns from recess.

Additional information is available in the WCEY Health Alert, attached below.