23 March 2026

This Week in Health Policy for March 23

This week (March 23-27)

The House and Senate are scheduled to be in session this week.

House Energy and Commerce Subcommittee on Health will hold a legislative hearing on "Policies to Protect Our Communities from Illicit Drug Threats."

  • Date: Thursday, March 26 at 2:00 p.m. ET
  • More information available here.

House Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies will hold a Member Day hearing.

  • Date: Thursday, March 26 at 10:00 a.m. ET
  • More information available here.

Last week (March 16-20)

Congressional Highlights

Senate Finance Democrats release framework for private insurance reform. On Wednesday (March 18), Senate Finance Committee Ranking Member Ron Wyden (D-OR) and 11 Democratic colleagues released a Dear Colleague letter outlining a framework to reform the private health insurance market, citing rising premiums, out-of-pocket costs, and administrative barriers that limit access to care. The letter calls for policies to rein in insurer practices that increase costs or delay care, improve consumer protections, ensure federal dollars prioritize patient care over profits, and address market consolidation and anticompetitive behavior.

Senate Judiciary Committee advances DOJ fraud division nominee. On Thursday (March 19), the Senate Judiciary Committee voted along party lines to advance President Trump's nomination of Colin McDonald to lead the Justice Department's newly established national fraud enforcement division. If confirmed, McDonald would oversee a unit focused on fraud in taxpayer-funded benefit programs, including Medicaid and SNAP. The nomination now heads to the full Senate.

Administrative Highlights

White House releases national AI legislative framework; House GOP signals intent to act. On Friday (March 20), the Trump Administration released a national legislative framework outlining priorities for federal AI policy across six areas, including child safety, consumer and small business protections, intellectual property, free speech, U.S. competitiveness, and workforce development. The framework also points to related executive actions focused on reversing prior AI policies, expanding AI education, promoting U.S. AI exports, accelerating domestic AI infrastructure and data development, and applying AI to pediatric cancer research. Following the announcement, House Speaker Mike Johnson, Majority Leader Steve Scalise, and the chairs of the Energy and Commerce, Judiciary, and Science Committees issued a joint statement committing to work toward implementing the framework.

CMS convenes first Rural Health Transformation Summit. On Wednesday (March 18), the Centers for Medicare and Medicaid Services (CMS) convened leaders from all 50 states for the first Rural Health Transformation Summit to advance implementation of the $50 billion Rural Health Transformation Program and support state-led innovation in rural health care. The summit brought together state officials, CMS leadership, and subject matter experts to align implementation priorities, share early lessons, and discuss strategies across the program's five strategic goals, including expanding access to care, strengthening the rural health workforce, advancing value-based and innovative care models, and modernizing health IT and telehealth infrastructure.

HHS launches investigations into state abortion coverage mandates. On Thursday (March 19), the Department of Health and Human Services (HHS) Office for Civil Rights announced investigations into 13 states over whether state insurance mandates unlawfully require health plans to cover abortion in violation of federal religious and conscience protections under the Weldon Amendment. The agency said it is conducting compliance reviews and has requested information from states on how abortion coverage requirements are implemented and enforced. The Administration framed the probes as part of broader efforts to strengthen federal conscience protections and oversight of state health policy compliance.

CMS Innovation Center announces MAHA ELEVATE funding opportunity. CMS announced a new notice of funding opportunity for MAHA ELEVATE, which will award cooperative agreements to up to 30 recipients that promote health and prevention for Original Medicare beneficiaries, including three set aside specifically for programs focused on dementia and cognitive decline. Awards will be made across two cohorts beginning in October 2026 and October 2027, with up to $3.3 million per recipient over three years, totaling up to $100 million. Letters of intent are due April 10, 2026.

CMS finalizes rule to modernize Medicare communications and claims processing. On Friday (March 20), CMS issued a final rule phasing out the use of fax machines and paper mail across Medicare administrative processes, shifting to electronic communications and standardized digital transactions. The rule adopts national standards for electronic health care claims attachments, replacing manual, paper-based workflows with automated data exchange to improve efficiency, reduce administrative burden, and speed claims processing. CMS estimates the changes will save taxpayers nearly $782 million annually.

FDA advances National Priority Voucher program with public input and fourth expedited approval. On Friday (March 19), the Food and Drug Administration (FDA) announced it will hold a public meeting in June to solicit stakeholder feedback on the Commissioner's National Priority Voucher (CNPV) pilot program, which provides expedited review timelines for drugs addressing designated national health priorities. The announcement follows the FDA's approval of a higher-dose formulation of semaglutide (Wegovy HD), the fourth product approved under the program, which was reviewed in just 54 days.

FDA releases draft guidance encouraging alternatives to animal testing in drug development. On Wednesday (March 18) the FDA issued draft guidance outlining how drug developers can validate and use new approach methodologies (NAMs) as alternatives to animal testing in preclinical drug development, in line with the agency's broader effort to reduce reliance on animal models. The guidance provides a framework for demonstrating scientific validity and regulatory relevance of methods such as organ-on-chip systems, organoids, and computational modeling.

Federal judge pauses changes to childhood vaccine recommendations and ACIP appointments. On Monday (March 16), a federal judge in Massachusetts temporarily blocked the Trump administration's changes to the national childhood vaccine schedule and stayed the appointment of 13 new members to the Advisory Committee on Immunization Practices (ACIP), halting implementation of HHS Secretary Robert F. Kennedy Jr.'s overhaul of federal vaccine policy. The ruling pauses recent actions that reduced recommended childhood vaccinations, including changes affecting COVID-19 and hepatitis B guidance, and prevents the reconstituted ACIP from meeting while the case proceeds.

Federal judge blocks HHS action limiting gender-affirming care for minors. On Thursday (March 19), a federal judge in Oregon halted Secretary Kennedy's effort to restrict access to gender-affirming care for minors, ruling that the administration exceeded its authority by declaring such care "neither safe nor effective" without following required rulemaking procedures. The decision grants summary judgment to a coalition of Democratic-led states challenging HHS's attempt to withhold Medicare and Medicaid funding from hospitals providing the care and prevents enforcement of a December declaration that sought to override medical standards.

Hearings, Markups, and Other Committee Activity

House Energy and Commerce Subcommittee on Oversight and Investigations held a hearing on "Protecting Patients and Safeguarding Taxpayer Dollars: The Role of CMS in Combatting Medicare and Medicaid Fraud." On Tuesday (March 17), the Subcommittee heard testimony from Kim Brandt, Deputy Administrator and Chief Operating Officer at CMS, on the agency's efforts to detect, prevent, and respond to fraud across Medicare and Medicaid. Republicans emphasized the scope of improper payments, vulnerabilities in state Medicaid programs, and the need for stronger program integrity tools, while Democrats raised concerns about ensuring fraud prevention efforts do not restrict access to care for eligible beneficiaries or disproportionately impact vulnerable populations.

  • More information available here.

House Energy and Commerce Subcommittee on Health held a hearing on "Lowering Health Care Costs for All Americans: An Examination of the U.S. Provider Landscape." On Wednesday (March 18), the Subcommittee heard testimony from hospital, physician, employer, and patient advocacy representatives on the role providers play in driving health care costs and affordability. Democrats focused on hospital consolidation, administrative burdens such as prior authorization, and the impact of recent Medicaid and ACA coverage changes on provider stability, while Republicans highlighted pricing transparency, competition, and payment incentives as key drivers of rising costs. Witnesses across panels discussed workforce pressures, administrative complexity, and misalignment between reimbursement and the cost of delivering care.

  • More information available here.

House Committee on Education and Workforce held a hearing on "Strengthening Federal Workers' Compensation Programs: Ensuring Integrity, Efficiency, and Access." On Wednesday (March 18), the Workforce Protections Subcommittee examined the administration and performance of federal workers' compensation programs, including benefit delivery, claims processing, and oversight. Republicans emphasized program integrity, efficiency, and the need to reduce fraud and administrative delays, while Democrats stressed maintaining benefit adequacy, protecting injured workers' access to care, and avoiding barriers that could limit eligibility or timely compensation. Witnesses discussed potential reforms to improve claims management while balancing cost control and worker protections.

  • More information available here.

House Appropriations Subcommittee on Labor-HHS-Education held an oversight hearing on the NIH. On Tuesday (March 17), the Subcommittee heard testimony from National Institutes of Health (NIH) Director Jay Bhattacharya during his first public appearance since also assuming duties as interim director of the Centers for Disease Control and Prevention (CDC). Democrats raised concerns about Bhattacharya's dual leadership roles, recent disruptions to NIH grant funding, and efforts to cancel or restructure research tied to diversity, equity, and inclusion. Republicans focused on restoring public trust in federal health agencies following the COVID-19 pandemic, with Bhattacharya emphasizing improved treatments, cures, and disease prevention as central to rebuilding confidence. The hearing came as Congress increased NIH funding in the most recent spending package and as the agency launched public input on its FY 2027—2031 strategic plan.

  • More information available here.

House Ways and Means Health Subcommittee Hearing on "Improving Kidney Health Through Better Prevention and Innovative Treatment." On Wednesday (March 18), the House Ways and Means Health Subcommittee held a hearing examining the growing burden of chronic kidney disease (CKD) and end-stage renal disease (ESRD), with a focus on prevention, early detection, and innovation in treatment and care delivery. Members discussed the significant impact of kidney disease on Medicare spending, the role of underlying chronic conditions such as diabetes and hypertension, and the need to modernize Medicare payment and coverage policies to better support innovative therapies, home dialysis, and improved patient outcomes.

  • More information available here.

House Select Committee on China held a hearing on "From the Science Lab to the Medicine Cabinet: How China is Cornering the Market on Our Medicines." On Wednesday (March 18), the Committee heard testimony from industry, investment, and policy experts on U.S. reliance on China for pharmaceutical ingredients, manufacturing capacity, and emerging biotechnologies. Members from both parties raised concerns about supply chain vulnerabilities, national security risks, and the potential for economic coercion, while discussing policy options to strengthen domestic drug manufacturing, diversify supply chains, and incentivize U.S.-based innovation. Witnesses highlighted risks tied to antibiotics, critical medicines, and advanced therapeutics

  • More information available here.

Reports, Studies, and Journals

  • HHS Office of Inspector General: Medicaid Fraud Control Units Annual Report, Fiscal Year 2025. The report, which summarizes FY 2025 activity across 53 state Medicaid Fraud Control Units (MFCUs), found that MFCUs recovered nearly $2 billion in criminal and civil recoveries and returned $4.64 for every $1 spent by states and the federal government. In FY 2025, MFCUs reported 1,185 convictions, including 856 fraud convictions and 329 convictions related to patient abuse or neglect, and generated 900 exclusions from federal health care programs.
  • Health Affairs: US National Spending on Mental Health and Substance Use Disorder Treatment Driven by Case Growth, 2000-21. This study finds that mental health and SUD spending more than tripled from 2000 to 2021, with nearly 90% of growth driven by more people receiving treatment rather than higher costs per case, indicating expanded access as the primary driver of spending increases.
  • KFF / Peterson-KFF Health System Tracker: Eight Trends Shaping 2026 Health Care Costs. This analysis outlines eight major forces shaping health care costs in 2026, including rising premiums and out-of-pocket costs, prescription drug spending, market consolidation, price transparency, artificial intelligence, and potential Medicaid funding changes. The report highlights health care affordability as a top concern for consumers and policymakers heading into the 2026 policy and election cycle.
  • Commonwealth Fund: When Barriers May Be Beneficial — What We've Learned About Telemedicine and Low-Value Care. Analyzing 2019—2022 Medicare claims data, this blog finds that higher telemedicine adoption was associated with reduced use of certain low-value tests and lower per-person spending, even as total visit rates increased slightly. The authors suggest that virtual care may introduce productive "frictions" that discourage low-value services while preserving access and efficiency.
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Contact Information

For additional information concerning this Alert, please contact:

Washington Council Ernst & Young

Document ID: 2026-0694