McDermott+ Check-Up: May 15, 2026 - McDermott+

McDermott+ Check-Up: May 15, 2026

THIS WEEK’S DOSE


  • House Energy and Commerce Health Subcommittee advances bipartisan public health bills. Subcommittee members unanimously approved and advanced eight health-related bills to the full committee.
  • House Oversight Committee launches fraud task force. Chaired by Rep. Gill (R-TX), the task force kicked off with a letter to Ohio’s Medicaid director alleging fraud in a state Medicaid waiver program.
  • CMS pauses hospice and home health Medicare enrollment, defers California Medicaid funding. The Centers for Medicare & Medicaid Services (CMS) instituted six-month nationwide moratoria on new Medicare enrollments for home health agencies and hospice providers, and deferred $1.3 billion in federal Medicaid payments to California.
  • HHS announces maternal and fertility health initiatives. The initiatives include a public-private partnership to reduce maternal mortality, a proposed rule to expand employer-sponsored fertility benefits, and a maternal health resource platform.
  • FDA Commissioner Makary resigns. Current US Food and Drug Administration (FDA) Deputy Commissioner for Food Kyle Diamantas will serve as acting commissioner.

CONGRESS


House Energy and Commerce Health Subcommittee advances bipartisan public health bills. The subcommittee unanimously advanced the following bills to the full committee:

  • H.R. 4348 would reauthorize the Kay Hagan Tick Act and federal efforts to improve research, prevention, and education related to tick-borne diseases.
  • H.R. 4541, the Young Women’s Breast Health Education and Awareness Requires Learning Young Act (EARLY) Act Reauthorization of 2025, would reauthorize programs to educate young women and providers about breast health and early detection.
  • H.R. 3747, the Accelerating Access to Dementia and Alzheimer’s Provider Training (ADAPT) Act, would support provider training to improve early diagnosis and care for patients with dementia and Alzheimer’s disease.
  • H.R. 8209, the School-Based Health Centers Reauthorization Act of 2026, would reauthorize funding for school-based health centers to expand access to care for children and adolescents.
  • H.R. 5160, the Stem Cell Therapeutic and Research Reauthorization Act of 2025, would reauthorize and support cord blood and stem cell research and treatment programs.
  • H.R. 8205, the Accelerating Access to Critical Therapies for ALS Reauthorization Act of 2026, would reauthorize initiatives to support research and access to treatments for ALS.
  • H.R. 5347, the Healthcare Efficiency Through Flexibility Act, would modernize and amend quality reporting metrics for accountable care organizations.
  • H.R. 1703, the Choices for Increased Mobility Act of 2025, aims to clarify payment rules for manual wheelchairs under Medicare Part B.

House Oversight Committee launches fraud task force. On May 13, 2026, House Committee on Oversight and Government Reform Chair Comer (R-KY) announced a new Task Force on Defending Constitutional Rights and Exposing Institutional Abuses, chaired by Rep. Gill (R-TX). The task force will examine institutions, programs, and policies, including diversity, equity, and inclusion policies; immigration and social welfare programs; and matters related to program integrity and potential fraud. The task force is authorized for six months, will hold hearings, and includes Reps. Jordan (R-OH), Biggs (R-AZ), Cloud (R-TX), Donalds (R-FL), and Jack (R-GA). As an initial action, the task force sent a letter to Ohio’s Medicaid director requesting information about reported fraud in a state Medicaid waiver program, citing media coverage that alleges improper billing practices.

ADMINISTRATION


CMS pauses hospice and home health Medicare enrollment, defers California Medicaid funding. On May 13, 2026, CMS announced temporary nationwide moratoria on new Medicare enrollments of home health agencies and hospice providers, which CMS has identified as high-risk provider categories for fraud. The moratoria will remain in effect for six months and may be extended in additional six-month increments if CMS determines it is necessary. During this period, CMS plans to expand program integrity efforts, including more targeted investigations, enhanced use of data analytics, and faster action to remove providers suspected of fraudulent activity from the Medicare program. Notably, these actions apply only to Medicare, though CMS has encouraged states to consider similar targeted measures for Medicaid, where appropriate. The moratoria will apply to all applications for initial Medicare enrollment and certain changes in majority ownership, which CMS indicates are frequently used to obscure control by bad actors. Importantly, the moratoria do not affect currently enrolled providers, who may continue delivering services to Medicare beneficiaries without interruption.

This announcement follows CMS’s nationwide moratorium on certain durable medical equipment, prosthetics, orthotics, and supplies providers. The moratoria align with broader federal fraud, waste, and abuse initiatives, including Vice President Vance’s Anti-Fraud Task Force, and continues the administration’s push to prevent improper billing and limit entry of high-risk providers in Medicare.

The same day, the White House and CMS held an event to discuss anti-fraud efforts. Vice President Vance and CMS Administrator Oz announced the deferment of $1.3 billion in federal payments to California Medicaid, citing a lack of action in addressing fraud. Most of those funds relate to home- and community-based services that have already been provided. California refuted CMS’s allegation that the increase in these services indicates fraud.

CMS officials also reported sending letters to all 50 states requiring them to demonstrate how they are addressing and prosecuting Medicaid fraud. Failure to do so could result in restrictions on federal funding for state Medicaid fraud control units (MFCUs). The vice president noted that although MFCUs are well funded by the federal government, the funds are not always put to effective use to tackle fraud, waste, and abuse. He named Hawaii, New York, and California as states that do not collaborate effectively with the administration’s fraud efforts, and cited Maryland and Ohio as two states that work well with them. CMS officials also announced that the agency will create a Medicaid Fraud War Room to review claims in real time and assess their legitimacy prior to payment, and that it plans to partner with law enforcement, MFCUs, and other stakeholders.

FDA Commissioner Makary resigns. Following rumors of Marty Makary’s impending departure, President Trump announced on May 12, 2026, that Makary resigned as commissioner of the FDA. The administration named Kyle Diamantas as acting commissioner. Makary had been scheduled to testify on fiscal year (FY) 2027 priorities before the Senate Appropriations Agriculture-FDA Subcommittee on May 13, 2026. As acting commissioner, Diamantas may serve for up to 210 days under federal law before President Trump must put a nominee forward for Senate approval. At this moment, names have not been floated publicly for the role.

HHS announces maternal and fertility health initiatives. The US Department of Health and Human Services (HHS) announced a series of initiatives that it states will improve maternal health outcomes and expand support for fertility care and services.

  • HHS’s Office on Women’s Health announced a memorandum of understanding with nonprofit think tank Heartland Forward to advance maternal health outcomes nationwide. The partnership will focus on reducing maternal morbidity and mortality through data sharing and evidence-based initiatives spanning pre-pregnancy through postpartum care, including expansion of the HHS Perinatal Improvement Collaborative, which currently includes more than 220 hospitals.
  • HHS, the Internal Revenue Service, and the US Department of Labor’s Employee Benefits Security Administration issued a proposed rule designed to encourage employer-sponsored fertility coverage. The proposal would create a new category of limited excepted benefits, allowing certain fertility services to be offered outside many federal group market requirements. If finalized, the rule would apply to group health plans and issuers beginning in plan years that start on or after January 1, 2027. Public comments are due by July 13, 2026.
  • HHS unveiled Moms.gov, a new online resource hub for expecting mothers. The platform provides centralized access to information on pregnancy and postpartum care, including links to find locations of pregnancy centers (which typically do not provide resources related to pregnancy terminations) and federally qualified health centers (which typically provide more complete services). It also provides resources related to nutrition support, mental health services, adoption, and other tools intended to support maternal and family health.

COURTS


Supreme Court again extends telehealth mifepristone access ruling. On May 14, 2026, the U.S. Supreme Court issued an order that continues to block the 5th Circuit Court of Appeals ruling that would invalidate Biden-era FDA regulations expanding telehealth and mail access to mifepristone. The order maintains online and mail order access to mifepristone, without in-person dispensing requirements, while litigation continues in the lower courts.

QUICK HITS


  •  GAO releases report on reducing costs and improving services in federal programs. The US Government Accountability Office (GAO) report identified 53 recommendations that could result in federal financial benefits, 18 of which are health related. GAO recommends efforts to equalize Medicare payment rates across healthcare settings, which it estimates could result in savings of nearly $157 billion over 10 years.
  • Healthcare Advisory Committee to hold first meeting. The committee, designed to provide recommendations on improving Medicare, Medicaid, and the marketplace to HHS Secretary Kennedy and CMS Administrator Oz, will hold a public meeting on May 18, 2026. The agenda includes discussing the working group’s scope of work and bylaws, as well as time for public comment.
  • OIG releases report on CMS rehabilitation services program integrity. The Office of the Inspector General (OIG) report includes recommendations for CMS to improve program integrity around coverage of rehabilitation services, finding that unclear Medicare requirements for inpatient rehabilitation facilities have led to inconsistent documentation, coverage, and billing practices. CMS disagreed with three of OIG’s four recommendations.
  • FDA finalizes food chemical safety post-market assessment program. The FDA established a new proactive framework to monitor, prioritize, and reassess chemicals in the food supply. The agency also launched reassessments of common food additives butylated hydroxytoluene and azodicarbonamide, and issued requests for information to evaluate their safety and use in food products.
  • FDA requests information on drug repurposing to address unmet medical needs. The FDA invited public input on identifying new uses for existing drugs, particularly for chronic, rare, and underserved conditions, to support potential labeling updates and expand treatment options using existing safety and efficacy data.

NEXT WEEK’S DIAGNOSIS


The House and Senate are both in session next week, the last week before the Memorial Day recess. The Senate is expected to work toward advancing the reconciliation 2.0 package that is focused on immigration enforcement and other homeland security priorities, with possible floor votes before the week’s end. The House reconfigured its schedule to be in session on Friday, May 22, 2026, in case the reconciliation measure advances to the House.

The Senate Health, Education, Labor, and Pensions Committee is scheduled to hold a hearing on gender affirming care, and the Senate Appropriations Labor-HHS Subcommittee will hear testimony from National Institutes of Health Director Bhattacharya on the FY 2027 budget request. Across the Capitol, the House Energy and Commerce Health Subcommittee will hold a hearing on the Medicare Physician Fee Schedule, and there are rumors of a House Ways and Means Committee markup on several healthcare bills, although an official announcement has not yet been made.

On the regulatory front, we continue to await the federal independent dispute resolution operations rule and the final Notice of Benefit and Payment Parameters for 2027.


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