Healthcare Preview for the Week of: July 7, 2025 - McDermott+

Healthcare Preview for the Week of: July 7, 2025

Reconciliation aftermath


Last week, President Trump signed H.R. 1, the One Big Beautiful Bill Act, into law after months of work on the reconciliation package. This week, things will slightly cool down in Washington, DC. After House passage of H.R. 1, Republican leadership announced that the House will be out this week, postponing any hearings or floor action. Congressional focus now mostly turns to reconciliation implementation and fiscal year (FY) 2026 appropriations.

The health provisions in H.R. 1 have varying effective and compliance dates, ranging even as far as 2028, and will need to be implemented by the administration through guidance or regulation. This gives stakeholders and lawmakers some time to assess whether changes to the statute are necessary or if specifics are needed in guidance or regulation for proper implementation. That work will begin this week but will continue over the next few years as effective and compliance dates approach.

The Senate will begin its FY 2026 appropriations markups this week as it considers three funding bills, including the bill that funds the US Food and Drug Administration. The House Appropriations Committee previously approved that bill by a party line vote. The deadline to fund the government for FY 2026 is September 30, 2025, although, like most years, Congress is unlikely to complete all 12 appropriations bills by then. That means that another continuing resolution (CR) for government funding or an omnibus funding bill may be coming down the pike.

Because September 30, 2025, is very soon when you look at the congressional calendar, Congress likely will pass a short-term CR in September, and debate will continue toward the end of the year. Health extenders are also likely to be discussed in this context. Key items in that category include telehealth, disproportionate share payments to hospitals, rural Medicare hospital provisions, funding for community health centers, and funding for Medicare beneficiary low-income education and enrollment efforts.

The Senate also faces a statutory deadline of July 18, 2025, to act on the White House rescissions package that the House passed in mid-June. The package would rescind more than $9 billion of previously appropriated funding, including for various global health efforts. Senate Appropriations Committee Chair Collins (R-ME) has expressed concerns about the package. If the Senate does not approve the package by July 18, the money will not be rescinded.

On the administration front, the calendar year 2026 proposed Medicare physician and outpatient department payment regulations are expected as early as this week. The proposed regulations could include key administration priorities, including policies related to the Make America Healthy Again movement. The physician fee schedule likely will be revised to take into account the 2.5% increase to the conversion factor for 2026, as passed in H.R. 1.

Today’s podcast


In this week’s Healthcare Preview, Debbie Curtis and Rodney Whitlock join Maddie News to discuss what Congress will be focusing on after the passage of the reconciliation package.