Senate HELP Committee holds executive session. The committee met to consider 10 bills, one of which was health-related. The Health Information Privacy Reform Act (S 3097) would establish privacy, security, and breach notification requirements for identifiable health information held by entities that generally are not covered by the Health Insurance Portability and Accountability Act (HIPAA), and also contains provisions related to the confidentiality of substance use disorder records and patient notification requirements under HIPAA. The bill was approved by a vote of 22-0.
The committee also advanced two health-related nominations, which now move to the full Senate for a vote:
House Republicans release legislation to bolster healthcare fraud prevention. House Budget Chair Arrington (R-TX), House Budget Vice Chair Smucker (R-PA) and Health Care Task Force Chair Moore (R-UT), joined by Reps. Carey (R-OH), Grothman (R-WI), McDowell (R-NC), and Obernolte (R-CA), announced legislation to prevent fraud in federal programs. If implemented, HR 9811, the Anti-Fraud Fund Act of 2026, would invest $7 billion annually for fiscal years (FYs) 2027 – 2030 for a total investment of $28 billion in the joint HHS and US Department of Justice (DOJ) Health Care Fraud and Abuse Control Program.
According to the press release, the preliminary estimate from the Congressional Budget Office (CBO) found that the legislation would save at least $168 billion over 10 years. If that estimate holds, this significant healthcare savings figure could enable Congress to tackle a more significant health package in the lame duck session – if Members of Congress can agree to work together on bipartisan consensus policies. It could also prove a driver for inclusion in a reconciliation package if there is additional momentum on this front in this Congress.
Senate HSGAC holds hearing with Dr. Anthony Fauci. Having obtained and publicly released the private journal entries of former National Institute of Allergy and Infectious Diseases Director Fauci from the COVID-19 pandemic, HSGAC Chairman Paul subpoenaed Fauci to testify. Fauci pled the Fifth Amendment and did not answer questions. At the end of the hearing, Paul stated that the committee is planning to vote next week on whether to hold Fauci in contempt of Congress.
Senate Finance Ranking Member Wyden and 16 Democrats seek feedback on health coverage reforms. Finance Committee Ranking Member Wyden (D-OR) announced the release of a request for information (RFI) that seeks feedback on policy proposals related to private health insurance coverage. It calls for proposals to lower premiums and deductibles, expand coverage options, simplify enrollment, and reform practices that can delay or deny care, all toward the goal of achieving universal coverage. The RFI asks for written feedback by October 2, 2026, and follows similar feedback solicitations related to drug pricing and long-term care. Finance Committee Democrats intend to use this feedback as they draft comprehensive healthcare legislation in the next Congress.
CMS reports stoppage of $203 million in improper payments. CMS’s Medicare Fraud War Room, created in collaboration with the White House Task Force to Eliminate Fraud, announced that during its first 88 days it coordinated enforcement actions involving 50 high-risk Medicaid providers and more than $203 million in payments. The actions included 42 federal notices of intent to exclude providers from federal healthcare programs and 15 state enforcement actions against providers. Seven providers were subject to both federal and state action. The war room brings together CMS, the HHS Office of Inspector General, state Medicaid agencies, and federal law enforcement partners and uses data analytics to identify providers for potential investigation and enforcement.
CMS announces end of Part D Premium Stabilization Demonstration. The announcement covered preliminary technical Medicare Part D bid information for contract year (CY) 2027 to help plan sponsors finalize their Part D and Medicare Advantage offerings and prepare for Medicare open enrollment. In it, CMS noted the conclusion of the Part D Premium Stabilization Demonstration at the end of CY 2026. The demonstration, which was first implemented in CY 2025, was a subsidy that aimed to keep premiums down for Part D beneficiaries following benefit changes included in the Inflation Reduction Act. CMS stated: “For CY 2027, CMS bid analysis indicates that Part D plan sponsors had sufficient experience under the redesigned Part D benefit to support their assumptions in developing the prescription drug plan bids.” Given that this demonstration held down the cost of Part D premiums, the expectation is that there could be premium increases for CY 2027.
US district court judge issues ruling on Medicaid work requirements. The memorandum and order issued by a US district court judge in Massachusetts denied the plaintiffs’ motion for a preliminary injunction that would have blocked the new Medicaid work requirement rules from taking effect. The requirements will take effect January 1, 2027, while the case against the policy, brought by a number of Democratic-led states, can continue.
As of the time of publication, the Senate is scheduled to be in session next week before it begins its August recess. The Senate Finance Committee is scheduled to hold a hearing on biotechnology in healthcare. In his first hearing since becoming chair of the Senate Budget Committee, Sen. Johnson (R-WI) will hold a hearing entitled “Medicaid: the Reality.” The Senate Judiciary Committee is scheduled to hold a hearing on prescription drug costs.
On the regulatory front, we await the release of the FY 2027 final Medicare Inpatient Prospective Payment System rule, which is expected on or around July 31, 2026.
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