This week (February 9-13)

Both the House and Senate are in session this week.

House Energy and Commerce Health Subcommittee will hold a hearing on "Lowering Health Care Costs for All Americans: An Examination of the Prescription Drug Supply Chain."

• Date: Wednesday, February 11 at 10:15am ET
• More information available here.

Last week (February 2-6)

Congressional Highlights

President Trump signs into law HHS appropriations and extenders. On Tuesday (February 3), President Trump signed into law an appropriations "minibus" package (H.R. 7148) that ended a four-day government shutdown, funds the Department of Health and Human Services (HHS) for fiscal year (FY) 2026, and extends several health care programs, including Medicare telehealth flexibilities. The law does not include funding to revive the Affordable Care Act's enhanced premium tax credits that expired on December 31, and bipartisan negotiations in the Senate appear to have stalled, suggesting premium costs will remain unchanged for 2026. The law also does not include policies in President Trump's "Great Healthcare Plan" to expand tax-preferred accounts or codify his Most Favored Nations deals, however it does include additional transparency provisions for hospitals and pharmacy benefit managers (PBMs), including new commercial market PBM reporting requirements. Click here for WCEY's detailed alert on the health care provisions included in the package.

Senate Finance Democrats outline drug pricing policy priorities. On Wednesday (February 4), Senate Finance Committee ranking member Ron Wyden (D-OR) held a press conference and sent a Dear Colleague letter, outlining Senate Democrats' policy priorities to lower drug costs. The letter details Democrats' support for incorporating international pricing into the Inflation Reduction Act's Medicare drug price negotiation program, increasing the number of drugs subject to negotiation, lowering patient cost-sharing on drugs, and creating new tax incentives for drug development. Sen. Wyden said the Finance Committee minority staff would be working on legislative text in the coming weeks and months.

Cassidy probes 340B prime vendor. On Sunday (February 1), Senate Health, Education, Labor and Pensions Committee Chair Bill Cassidy (R-LA) sent a letter to the 340B prime vendor, Apexus, seeking information on the company's revenue drivers and business practices. The letter is part of Sen. Cassidy's years-long investigation into the 340B Drug Pricing Program and how revenue flows through various stakeholders.

Administrative Highlights

White House launches TrumpRx. On Thursday (February 5), the White House unveiled TrumpRx, a website that uses technology from GoodRx to display discounted cash prices for certain prescription drugs. A White House factsheet said the launch includes about 40 brand-name medications from the first five drug manufacturers who entered into Most Favored Nations deals with the Trump administration — AstraZeneca, Eli Lilly, EMD Serono, Novo Nordisk and Pfizer. President Trump said more drugs would soon be added. GoodRx said in a press release, "TrumpRx does not sell or dispense drugs. Instead, TrumpRx facilitates consumer access to the selected discount, and then the underlying partner platform executes the pricing." An FAQ included on the website explains the discounted pricing is only for cash pay patients and cannot be used with insurance. The website also clarifies that the discounts do not alter pharmacy arrangements with drug manufacturers.

HRSA backs off 340B rebate model pilot, for now. On Thursday (February 5), the Department of Justice and American Hospital Association filed a joint motion to vacate a hospital-brought lawsuit challenging the Health Resources and Services Administration's (HRSA) 340B rebate model pilot, which was scheduled to take effect on January 1, 2026. In the filing, both parties agreed to remand the case back to HRSA and agreed that HRSA would need to issue a new notice and drug manufacturer application process if it decides to move forward with a new rebate model pilot.

White House rescinds federal health funds from four blue states. On Thursday (February 5), the White House Office of Management and Budget (OMB) ordered the Centers for Disease Control and Prevention (CDC) to rescind over $600 million in funding from four Democratic-led states. The order, which impacts funding for Colorado, Illinois, California, and Minnesota, also directed the Transportation Department to rescind $943 million from those states. An OMB spokesperson told The Hill that the rescissions are targeting "states fraught with waste and mismanagement."

CMS publishes MFP explanations. On Thursday (February 5), CMS published the explanations of the maximum fair prices (MFPs) negotiated for the 15 Part D drugs that went through the second round of the drug price negotiation program. The MFPs for those drugs take effect January 1, 2027.

Trump Admin finalizes rule changing career staff designation. On Thursday (February 5), the Office of Personnel Management issued a final rule that will move some career federal employees into a new category called, "Schedule Policy/Career," which exempts them from certain job protections available to government workers. In the rule, OPM explains that the change will "allow agencies to quickly remove employees from critical positions who engage in misconduct, perform poorly, or obstruct the democratic process by intentionally subverting Presidential directives." The final rule takes effect on March 9. In a memo to agency leaders, OPM Director Scott Kupor clarified that no employee can be recategorized as Schedule Policy/Career without an executive order from the President.

FTC settles with PBM. On Wednesday (February 4), the Federal Trade Commission (FTC) announced a proposed consent agreement, resolving a lawsuit against the PBM Express Scripts over allegations that the company artificially inflated the price of insulin. As part of the settlement, Express Scripts agreed to cut insulin costs by $7 billion over a decade and to make several changes to its business practices, including: removing preferential formulary placement for drugs with high Wholesale Acquisition Costs (WAC), when lower cost versions are available; basing members' out-of-pocket costs on net drug prices, rather than list prices; delinking the PBM's compensation from a drug's list price; allowing plan sponsors to transition off of rebate guarantees and spread pricing arrangements; mandating new reporting requirements to plan sponsors; and reshoring the PBM's group purchasing organization from Switzerland to the United States. The settlement also includes a provision that would require payments through the TrumpRx platform to count toward a member's deductible and out-of-pocket cost caps. The agreement is open for public comment for 30 days. FTC has pursued similar legal action against CVS' Caremark and Optum Rx, but has not yet announced settlements.

BARDA launches $100M initiative to treat mosquito-born viruses. On Tuesday (February 3), the Biomedical Advanced Research and Development Authority (BARDA) launched a $100 million initiative, called SMART Antiviral Prize, to support the development of broad-spectrum, small-molecule antiviral therapies targeting viruses in the Togaviridae and Flaviviridae families, which includes dengue, Zika, West Nile, and Chikungunya. Applications can be submitted until May 11.

CMS updates guidance for HR 1 Medicaid SDP caps. On Monday (February 2), CMS released updated guidance on Medicaid state-directed payment (SDP) caps, clarifying how CMS will determine grandfathering eligibility and signaling that additional service categories may face similar limits. The guidance states that the agency will use business days, rather than calendar days, to calculate the 180-day window for programs that qualify for grandfathered status. CMS in the guidance also said it is preparing rulemaking on the policy and is "considering changes to the total payment rate limit for SDPs for other services beyond the four services mandated" by the statute.

HHS invests in substance use disorder treatment programs. On Monday (February 2), HHS unveiled new investments and actions to improve substance use disorder treatment and support services for those experiencing homelessness as a part of the Great American Recovery initiative. HHS said the $100 million "Safety Through Recovery, Engagement, and Evidence-based Treatment and Supports" (STREETS) initiative will target outreach, psychiatric care, medical stabilization and crisis intervention for homeless individuals. HHS also unveiled a $10 million Assisted Outpatient Treatment grant program that will work within the civil court system that promotes community-based treatment, and the Administration for Children and Families said it has added buprenorphine, methadone and naltrexone to its list of prevention services eligible for funding under Title IV-E, giving states and tribes access to a 50% federal match when the medications are prescribed to parents with opioid use disorder whose children are at imminent risk of entering foster care. The Substance Abuse and Mental Health Services Administration (SAMHSA) also announced it has distributed $794 million in block grant funding across the United States and territories to support community mental health services and substance abuse treatment and prevention.

FDA launches PreCheck pilot program. On Sunday (February 1), the FDA opened applications for its PreCheck pilot program, announced in August 2025. The program aims to bolster the domestic pharmaceutical supply chain by increasing regulatory predictability and facilitating the construction of manufacturing sites in the United States. The pilot implements a new two-phase approach designed to increase communication and information sharing during the facility readiness phase and streamline the application process.

Hearings, Markups, and Other Committee Activity

House Energy & Commerce Oversight and Investigations Subcommittee held a hearing on Common Schemes, Real Harm: Examining Fraud in Medicare and Medicaid. On Tuesday (February 3), the Subcommittee heard from a panel of witnesses representing health care fraud investigators, accountable care organizations, law experts, and state Medicaid fraud control units. During the hearing, several Democrats raised concerns about the Trump Administration's use of potential fraud as a justification for enforcement or other actions, while Republicans spoke of the reported growth in fraud schemes in Medicare and Medicaid and the need to increase enforcement activity.

• More information available here.

Senate HELP Committee held a hearing on Modernizing the National Institutes of Health: Faster Discoveries, More Cures. On Tuesday (February 3), the Committee heard testimony from NIH Director Jay Bhattacharya on his plans to improve NIH and reprioritize research funding to increase patients' access to needed treatments. During the hearing, Dr. Bhattacharya fielded questions from Democrats and some Republicans on NIH grant delays or cancelations impacting clinical trials. Democrats also pressed Dr. Bhattacharya on his position on vaccine safety and raised concerns about a lack of transparency within NIH, while Republicans spoke of the need to improve clinical trial processes and ensure that grant allocations are apolitical.

• More information available here.

Reports, Studies, and Journals

• HHS Office of Inspector General: Medicare Advantage Industry Segment-Specific Compliance Program Guidance. The report outlines voluntary compliance program guidance for Medicare Advantage that entities and individuals may use to help identify risks and implement compliance and quality programs.
• Federal Trade Commission: The FTC's Efforts in the Greater Fight Against Ransomware and Cyber-Related Attacks. The report provides an update on the FTC activity to prevent ransomware and cyber-related attacks, as well as enforcement actions across industries, including health care.
• Government Accountability Office: FDA: Oversight Responsibilities and Funding from Fiscal Years 2008 through 2024. The report found that while the FDA's funding and authorities increased from 2008 to 2024, the agency struggled to recruit, retain, and train its staff, as well as conduct certain oversight activities, such as facility inspections.