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The attack on Iran by U.S. and Israeli forces has brought foreign affairs back to the forefront of Washington’s attention. However, concerns about affordability continue to dominate domestic headlines, as Republicans and Democrats begin to refine their messaging for the November midterm elections. Health care is a critical part of that messaging, and both sides are trying to shape the narrative. How will they do it? Let’s get into it. Welcome to the Week Ahead!
The Administration
In response to the Supreme Court decision striking down most of his 2025 tariffs, President Trump imposed a new 10% tariff for the next 150 days. While there were carve-outs for some products, such as pharmaceuticals and pharmaceutical ingredients, there are still implications for the wider health sector. The impacts are still to be felt, but concerns have been raised by groups such as the Healthcare Financial Management Association about supply chain delays impacting the availability of personal protective equipment (PPE) and other medical equipment and supplies.
Meanwhile, March marks the start of much of the annual payment rules season, so the Office of Management and Budget (OMB) is busy. OMB has already received the Inpatient Psychiatric Facilities and Hospice Prospective Payment System proposed rules, and more are on their way, including IPPS and OPPS for FY 2027. We expect these proposed rules in March or April.
The Senate
There were fireworks during the Senate HELP Committee hearing to consider the nomination of Dr. Casey Means to be the next United States Surgeon General. Chairman Bill Cassidy (R-LA) and Sen. Lisa Murkowski (R-AK), along with many Democrats, expressed concerns about Dr. Means’ views on vaccines. While these concerns are not the same as voting against the nomination, they could make Dr. Means’ road to the office a bit bumpier. At the time of publication, Sens. Murkowski and Susan Collins (R-ME) were still undecided on the nomination. Dr. Means can only afford one Republican defection in order to avoid being rejected by the Committee.
Will HHS Sec. Robert F. Kennedy, Jr. be heading to the Hill any time soon? During an executive session on February 26, Sen. Christopher Murphy (D-CT) urged the Committee to hold future hearings on the impact of last summer’s Reconciliation bill on health care. While Chairman Cassidy did not comment on that request, he did express support for bringing Kennedy, Jr. to testify before the committee again, where the department’s changes to the Childhood Vaccination Schedule and the Advisory Committee on Immunization Practices are likely to be a hot topic.
Health Care Hearings This Week
- March 5: Senate HELP Committee hearing on transforming health care with data and improving patient outcomes
The House
Whispers of Reconciliation 2.0 are making the rounds, and Rep. Richard Hudson, Chair of the National Republican Congressional Committee, told an audience at a BGov event that his members have begun discussing what could potentially be included. According to Rep. Hudson, any potential 2nd reconciliation package would be smaller in scope and would need alignment from all Republicans, likely making it more difficult to get off the ground.
The House Appropriations Committee is getting started on FY 2027 funding, holding a Member Day hearing for Labor-HHS on March 5. The deadline for programmatic language has been moved up several weeks (now March 20). The Labor-HHS bill will allow earmarks for the first time in 3 years, specifically for the Health Resources and Services Administration’s community project funding. This would see funds allocated to rural clinics, hospitals, and Federally Qualified Health Centers. March 20 is also the deadline for members to get these community project funding requests submitted.
Other Health Care Hearings This Week
- March 4: House Oversight Committee hearing on fraud and misuse of federal funds in Minnesota
- March 4: House Veterans’ Affairs Oversight Subcommittee hearing on oversight of Veterans’ health care and benefits legislation
- March 5: House Veterans’ Affairs Health Subcommittee hearing on supporting Veterans with traumatic brain injury
There You Have It
The newly renamed Actor Awards were last night, with many worthy nominations. Were you surprised by the winners? Let us know. Make it a great week!
Lawmakers are headed back to DC after a short break, without a clear path forward for funding the Department of Homeland Security (DHS) and foreign policy on their minds. It’s shaping up to be another big week so let’s get into it. Welcome to the Week Ahead!
The Administration
President Trump will be offering his State of the Union address on February 24. On health care, we expect the President to continue message on affordability. And we know why – the midterms are fast approaching!
A recent KFF poll found that 66% of US adults worry about being able to afford health care for them and their family, placing health care concerns above housing, utilities, and groceries. We expect the President to tout the launch of TrumpRx and recent efforts to reduce waste, fraud, and abuse as evidence of his success.
The Advisory Committee on Immunization Practices (ACIP) February meeting has been cancelled, following a legal challenge from the American Academy of Pediatrics over the committee members. Health and Human Services Secretary Kennedy removed all 17 ACIP members in June 2025 and selected replacements who are more skeptical about vaccines.
The Senate
While foreign policy is making the rounds on the news with the discussion of the War Powers Resolution, what is happening with health care?
Casey Means, nominated to be Surgeon General of the United States, will testify before the Senate Health, Education, Labor, and Pensions (HELP) committee on February 25. Her pick stirred up some controversy from within the Make America Health Again (MAHA) movement last year. One of Means’ most vocal critics was Laura Loomer, who raised concerns about her lack of an active medical license.
The Senate Aging Committee is holding a hearing on the regulatory process for rare diseases at the Food and Drug Administration (FDA) on February 26. This just one week after Senate HELP Chairman Bill Cassidy (R-LA) released a report on the FDA review process and reorganization. With closer looks from two Senate committees, Senate action on pushing FDA to approve treatments faster may be in the near future.
The House
Hospitals and providers will be in the spotlight in March as the House Ways and Means Committee continues looking at broad constituencies in the health care sector. As campaign season begins, both Republicans and Democrats will want to show their constituents that they are working on improving health care affordability.
In the meantime, the Health Subcommittee is holding a hearing on advancing the healthcare workforce on February 24. While not the committee that typically talks about workforce, we expect Republicans to take credit for pushing out key workforce dollars from the $50 billion Rural Health Transformation Program. Health care providers are up in arms about the concerns the Department of Education’s proposed rule on graduate and professional student loans, which would greatly limit the amount of funding for medical and nursing students. This on top of visa approvals and renewals being stalled, with the lapse in DHS funding, will certainly be hot topics.
Also, the House is buzzing with the release of the draft Farm Bill. Don’t forget the Farm Bill includes telemedicine loans and grants and rural broadband improvements.
There You Have It
The Winter Olympics have officially ended with the US walking away with 33 medals, including 2 impressive overtime gold medal wins from the men’s and women’s hockey teams. What was your favorite event? Let us know. Make it a great week!
On February 11, 2026, the Senate Special Committee on Aging held a hearing to examine how regulatory challenges for physicians can create undue burdens. There was bipartisan support about the need to address the issues of physician burnout, administrative burdens, and prior authorization reforms.
OPENING STATEMENTS
WITNESSES
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Alma Littles, MD, Dean and Chief Academic Officer, Florida State University College of Medicine – Testimony
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Lee Gross, MD, Founder, Epiphany Health Direct Primary Care – Testimony
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Jeffrey Smith, CPA, MBA, FACMPE, CGMA, Incoming Board Chair of Medical Group Management Association (MGMA) and Chief Executive Officer Piedmont HealthCare, PA – Testimony
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Corey Fiest, JD, MBA, Co-founder and Chief Executive Officer, Lorna Breen Heroes’ Foundation – Testimony
MEMBER DISCUSSION
Sen. Ashley Moody (R-FL) expressed concerns that the exodus of providers from traditional practices to direct primary care will lead to care not being accessible to all patients. Sen. Moody asked what Dr. Gross would recommend to ensure that patients served by traditional practices continue to have access to quality and affordable care. Dr. Gross responded that, in his view, a physician who leaves practice completely would be seeing zero patients, but a physician who moves to a direct primary care model is still seeing patients.
Ranking Member Gillibrand (D-NY) requested that Mr. Fiest explain how the wellbeing guide developed by his organization reduces physician burnout. Mr. Fiest shared that clinicians who practice in systems that have implemented the guide have experienced a decrease in time spent outside of direct patient care and increased levels of wellbeing, both of which have decreased burnout symptoms. Ranking Member Gillibrand also asked what the expected impact of the Wasteful and Inappropriate Service Reduction (WISeR) Model will be on administrative burden and burnout. Mr. Smith expressed concerns that the model will increase the need for prior authorizations and lead to more patients seeing delayed or denied care. Mr. Smith continued that these effects would lead to sicker patients and contribute to physician burnout. Ranking Member Gillibrand was also interested in how a mismatch in medical training and actual practice can drive burnout. Dr. Gross argued that current medical education does not teach practice management skills, which are crucial for physicians who want to practice outside of a large hospital system.
Sen. Raphael Warnock (D-GA) questioned what the effect of additional workforce shortages will have on health professionals. Mr. Fiest shared that reductions in staff will impact access, quality, and cost of health care as physicians need to take on greater amounts of administrative work. Sen. Warnock wondered if increasing the number of residency spots, through bills such as S.2439, could be part of a solution. Mr. Smith said that yes, any increase in slots would help, but they also need to incentivize residents to practice general primary care. Sen. Warnock questioned if the costs associated with medical school are dissuading students from entering the profession. Dr. Littles shared that costs are a large factor for students as they must support themselves through schooling. Dr. Littles also stated that students will make decisions on what type of medicine to practice based on salaries for different specialties.
Sen. Angela Alsobrooks (D-MD) asked what impactful, preventive system reforms could address the root causes of burn out. Mr. Fiest noted that reducing administrative burden, improving nursing safety, and preventing acts of violence would make the workload more manageable for providers. Sen. Alsobrooks then asked how the current prior authorization system contributes to physicians’ burdens and impacts the delivery of care. Mr. Smith explained that prior authorizations are delaying care, with more patients seeking care in urgent care or emergency rooms. Mr. Smith also highlighted that many administrative workers are experiencing high levels of burnout due to the workload and addressing administrative burdens would reduce turnover.
Chairman Rick Scott (R-FL) questioned how increased documentation requirements may reduce the desire to work in underserved areas. Dr. Littles shared that rural communities often do not have access to many electronic health record systems due to the high costs, and for systems that do have them, the complexity and lack of interoperability have a negative impact on the practice experience. Chairman Scott wanted to understand the general structure of Dr. Gross’s day. Dr. Gross shared that he has a greater capacity for same-day patients, which reduces his need to refer patients to the emergency room or specialists. Dr. Gross also has more time to manage his practice.
On February 11, 2026, the House Energy and Commerce Health Subcommittee held a hearing to consider how to reduce health care costs by examining the prescription drug supply chain. This hearing was the Subcommittee’s second on health care affordability, and reports indicate there will be additional hearings focusing on other parts of the health care sector. Overall, Republicans and Democrats both agreed that prescription drug costs are too high and that there is too much consolidation in the prescription drug industry, especially among pharmacy benefit managers (PBMs). However, Republicans and Democrats on the Committee also focused on familiar partisan arguments regarding the impact of the Inflation Reduction Act and recent actions by the Trump administration, including TrumpRx, on prescription drug costs. Unsurprisingly, witnesses from different parts of the pharmaceutical industry sought to highlight actions they have taken to reduce costs and to place blame on other stakeholders, including hospitals and insurance companies, as well as on programs such as the 340B program.
OPENING STATEMENTS
WITNESS TESTIMONY
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Lori M. Reilly, Esq., Chief Operating Officer, PhRMA – Testimony
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John F. Crowley, President and CEO, Biotechnology Innovation Organization – Testimony
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John Murphy, President and CEO, Association for Accessible Medicines – Testimony
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David Marin, President and CEO, Pharmaceutical Care Management Association – Testimony
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Angie Boliver, President and CEO, Healthcare Supply Chain Association – Testimony
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Chester “Chip” Davis, Jr., President and CEO, Healthcare Distribution Alliance – Testimony
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James Gelfand, President and CEO, The ERISA Industry Committee – Testimony
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Douglas Hoey, CEO, National Community Pharmacists Association – Testimony
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Rachel E. Sachs, Professor of Law, Washington University in St. Louis – Testimony
MEMBER DISCUSSION
PBM Consolidation and Vertical Integration
Multiple Health Subcommittee members on both sides of the aisle expressed concerns about reports that the 3 largest PBMs control 80% of the market and about PBMs’ frequent vertical integration. Members expressed skepticism about Mr. David Marin’s arguments that there is competition within the industry and that this competition leads to lower prices for patients. Other witnesses who did not represent PBMs were also highly critical of certain PBM practices. A number of Subcommittee members praised the inclusion of PBM reforms in the recently passed appropriations legislation, but others said more needed to be done.
Medicare Negotiation Vs. Most-Favored Nation Deals and TrumpRx
The biggest partisan divide centered on whether Medicare negotiation, as passed under the Inflation Reduction Act, or the most-favored-nation deals negotiated by the Trump administration and presented on TrumpRx, represented the better way to address concerns about drug costs. Republicans, including Health Subcommittee Chair Morgan Griffith (R-VA-9) and Rep. Michael Rulli (R-OH-6), praised the Trump administration for its efforts to secure lower drug prices for the American people through TrumpRx. Republicans, including full Committee Chair Brett Guthrie (R-KY-2), criticized the Inflation Reduction Act for disrupting the Medicare Part D marketplace.
On the other hand, Democratic members, including full Committee Ranking Member Frank Pallone (D-NJ-6) and Health Subcommittee Ranking Member Diana DeGette (D-CO-1), argued that the deals from the Trump administration lacked transparency. As a result, they argued, there is no way to verify how effective they are at lowering drug costs. These members asked Subcommittee Chair Guthrie if he would be willing to work with them to determine the details of these deals. He said he would as long as that didn’t blow up the deals in question. Democrats such as Rep. Marc Veasey (D-TX-33) criticized TrumpRx for listing drugs that could actually be found for cheaper using manufacturer or other coupons. Democratic members such as Reps. Pallone and Jennifer McClellan (D-VA-4) criticized Republicans for including carve-outs for orphan drugs from the Medicare negotiation program in the reconciliation bill and called for expanding Medicare price negotiation to the commercial market.
Federal Government’s Role in Drug Development and Approval
Members on both sides of the aisle expressed interest in the federal government’s role in drug development and approval. Rep. Dan Crenshaw (R-TX-2) asked Ms. Reilly about efforts to modernize the regulatory framework when it comes to the approval of new therapies. She responded that a transparent regulatory environment and strong IP protections are necessary to support the development of innovative therapies, including gene and cell therapies. On the other side of the aisle, Democratic members questioned witnesses about the impact of reductions in force (RIFs) at the Food and Drug Administration (FDA) and concerns about reports of politicalization within the agency. All of the witnesses who were asked about the impact of RIFs and politicization expressed concerns about the negative impact on drug development and approval. Democratic members such as Reps. Pallone and Kim Schrier (D-WA-8) expressed specific concerns about the FDA not reviewing Moderna’s flu vaccine due to vaccine skepticism. Other Democratic members criticized Republicans for not speaking out about cuts to basic research at agencies such as the National Institutes of Health (NIH). Rep. Guthrie countered that the NIH received a half-billion-dollar increase in the appropriations legislation.
Other Topics
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Rep. Griffith asked Mr. Crowley if they should start looking at insurance companies as fiduciaries and hold them liable for harm they cause to patients. Mr. Crowley agreed that this is a good idea to provide more protection for patients.
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Reps. Gus Bilirakis (R-FL-9) and Kevin Mullin (D-CA-15) asked Mr. Crowley about rare disease drug development. In response to a question from Rep. Bilirakis on how we can continue to encourage investment in finding cures for rare diseases without burdening patients, Mr. Crowley said we need to reduce the complexity of the clinical trial system, modernize the FDA, and ensure medications are affordable and accessible.
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Rep. Troy Balderson (R-OH-12) asked Mr. Hoey to elaborate on specific challenges rural pharmacies face when negotiating with PBMs, specifically with take-it-or-leave-it contracts for reimbursements. Mr. Hoey explained that PBMs hold all the leverage, forcing pharmacies to accept contracts that pay them less than it costs to acquire the drug; as a result, 5,000 pharmacies have closed in the last 4 years.
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Rep. Cliff Bentz (R-OR-2) asked Ms. Sachs how AI might help analyze the pharmaceutical space. She noted the FDA’s approval of AI-enabled medical devices and the use of AI to streamline clinical trial enrollment. She also suggested using AI to help the subcommittee look through and summarize the vast amounts of information in the pharmaceutical space. She also warned of an AI arms race between providers and insurers that could deny care through prior authorization.
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Rep. Rick Allen (R-GA-12) asked Mr. Gelfand if his proposed bill, H.R.5509, the Safe Step Act, would help hold insurers accountable for increasing the use of step therapy, leading to nonadherence and access issues. Mr. Gelfand explained that reforming step therapy makes sense and that it should be electronic, timely, and aligned with medical management.