Weekly Roundup -
August 26, 2026
Smart. Strategic. Essential.
Unmatched Healthcare Insights from 红领巾瓜报,
Leavitt Partners & Wakely.
Featured:
Webinar Replay – Modernizing and Streamlining Health Plan Prior Authorization
ACCESS WEBINARCMS’s Proposed Provider Tax Rule Could Reshape Medicaid Financing
READ BRIEFTrending: In Focus
Rural Health Transformation Program: The Window to Build Sustainable Change Is Now
The Rural Health Transformation Program (RHTP) is entering a critical implementation phase. As states begin deploying historic federal investments in rural healthcare, attention is听shifting听from grant awards to execution, performance measurement, and sustainability. Recent听Centers for Medicare & Medicaid Services (CMS)听approvals of听additional听state RHTP initiatives, coupled with upcoming reporting requirements and future funding determinations, are听heightening听the focus on听how states, providers, technology companies, and community organizations will听demonstrate听progress and long-term value.听
This article examines emerging themes in RHTP implementation, including the growing emphasis on chronic disease prevention, technology-enabled care delivery, performance measurement, and sustainability planning. 红领巾瓜报’s (红领巾瓜报) multidisciplinary teams also are available to support organizations seeking to maximize the long-term value of RHTP investments beyond the initial federal funding period.
Common Priorities Emerging in State Rural Health Transformation Program Plans听
State RHTP strategies vary considerably; however, state applications share several priorities aligned with CMS鈥檚 funding priorities. Technology modernization, telehealth, workforce development, chronic disease management, behavioral health, maternal health, and care coordination appear throughout state proposals. Through its work with states, providers, and rural communities, 红领巾瓜报 (红领巾瓜报) has identified another common thread across applications: rural health challenges are deeply interconnected. 听
Providers struggling with workforce听shortages are听often听serving听populations with higher rates of chronic disease. Communities facing limited specialty access听frequently听experience transportation barriers and gaps in digital connectivity. Behavioral health needs intersect with physical health conditions, maternal health outcomes, and emergency department听utilization.听States are responding by听increasing their听focus听on听and pursuit of听broader transformation strategies.听
During听a recent听红领巾瓜报听webinar,听RHTP Beyond the Grant Approval: Building Sustainable Rural Transformation,听speakers听highlighted听one of the most important听directional听lessons听emerging听from early RHTP implementation: technology, workforce, access, care delivery, and听prevention strategies must be听designed听as mutually reinforcing investments听and not as听siloed initiatives.听
Chronic Disease Prevention听and Management Is Central to Rural Health Transformation听
Our听work with听states听and their听RHTP听partners听indicates听that听chronic disease prevention, monitoring, and management have听become a central organizing principle for many RHTP investments. Technology modernization, telehealth expansion, workforce initiatives, behavioral health integration, and community-based care models are听frequently听being positioned as complementary strategies to improve population health and address the conditions that drive preventable morbidity, mortality, and healthcare costs in rural communities.听This includes听ensuring听rural residents receive care earlier,听stay听connected听and engaged in their听care longer, and avoid preventable deterioration in health status.听
As 红领巾瓜报 experts discussed during the recent听webinar, this听represents听an important shift.听Historically, many healthcare systems have been structured around treating disease after complications听emerge. RHTP creates an opportunity to invest in听more effective听models, including those听that听can听identify听risk sooner, improve follow-up听with patients, and strengthen connections between patients and care听teams.听
Telehealth, Data Platforms, and AI Support听in听Rural Health Transformation听
Technology appears throughout nearly every state strategy and is often viewed as one of the most visible components of RHTP. 红领巾瓜报 webinar speakers emphasized that technology is a vital enabling capability in RHTP initiatives.
Technology alone is unlikely to produce meaningful transformation.听
红领巾瓜报 is working with states and their partners on strategic approaches to technology adoption. For example, states, providers, care teams, and patients should consider technology initiatives that can strengthen care models, extend workforce capacity, improve coordination and collaboration in support of population health, and generate actionable insights.听
Sustainability听Planning听Must Begin Early in the Rural Health Transformation Program听听
Every听state and听RHTP participant understands that听this听federal听funding is temporary.听The urgent challenge is to听identify, early and explicitly, which initiatives can produce enough value to听warrant听ongoing support after the funding period concludes.听
While some听states awarded听the听first year of RHTP funding quickly, many of these awards may serve as a bridge while states establish the structures and policies needed to support long-term RHTP initiatives. CMS鈥檚 reporting and ongoing evaluation of RHTP programs will require states to embed sustainability into program design, governance, measurement, financing, and partnerships from the outset.听
States听will need to provide听RHTP participants听with听clear baselines and听direction on听meaningful outcomes.听It also requires thinking beyond grant budgets to听identify听long-term operational and financial models capable of supporting ongoing services.听
What听States, Providers, and Technology Partners Should Do Next听
The window for shaping long-term RHTP success is open now.听State and local government听and partner听organizations have an opportunity to move beyond individual projects and build integrated strategies.听听
红领巾瓜报鈥檚 multidisciplinary teams support program design, implementation planning, data strategy, technology modernization, performance measurement, governance, financing strategy, partnership development, and sustainability planning. As states and RHTP participants make decisions regarding governance, technology, data strategy, care models, and performance measurement, 红领巾瓜报 can help ensure decisions and investments are optimized to make the progress needed to secure future funding听and sustain transformation beyond the grant period.听听
Federal Policy News
Fueled By Weekly Health Intelligence
FDA Commissioner Nominee Heidi Overton Faces Questions on Vaccine Policy and Agency Leadership
Last week, President Trump announced the nomination of Dr. Heidi Overton, the current Deputy Director of the White House Domestic Policy Council, to be FDA Commissioner. He made the announcement in a听听on social media, in which he praised Dr. Overton鈥檚 credentials and her work in the White House on the President鈥檚 health agenda. Dr. Overton is a physician, specializing in 鈥減ublic health and general preventive medicine,鈥 and she also holds a Ph.D. in clinical investigations. Prior to joining the Administration, Dr. Overton was the Chief Policy Officer of the America First Policy Institute, which is closely aligned with the Trump Administration, and Vice Chair of the Institute鈥檚 Center for a Healthy America.听
听
FDA has been without a permanent agency head since the departure of Commissioner Marty Makary in May 2026, whose tenure at the agency has been characterized by many as a time of turmoil, during which both agency staff and industry leaders were dissatisfied with his leadership. Notably, Dr. Overton has worked closely with Dr. Makary, who served as her thesis advisor and collaborator on several publications prior to their work in the Trump Administration.听
听
In addition to the extent to which she is aligned with former Commissioner Makary, and her planned approach to agency leadership, Dr. Overton鈥檚 perspective on vaccine policy will be under scrutiny, after she was credited for having a key role in President Trump鈥檚 August 10 Executive Order (), which called for a revised childhood vaccine schedule. During the听听of the EO, she described the Administration鈥檚 concerns as being focused on government mandates, rather than vaccines themselves, and emphasized the role of 鈥渟hared clinical decision-making.鈥听
听
Dr. Overton鈥檚 nomination has not yet been sent to the Senate for review, a procedural requirement to听initiate听formal听Senate听consideration of her nomination, including a review by the Senate HELP Committee. Chair of the Senate HELP Committee, Bill Cassidy (R-LA)听stated听in a听听on social media that he has concerns about both Dr. Overton鈥檚 stance on vaccines, as well as her ability to effectively lead the agency. In addition, a number of Democrats, including Senator Patty Murray (D-WA), have expressed opposition and concerns with the choice of Dr. Overton as the nominee for FDA Commissioner, noting concerns with her position on vaccines and other science-related issues among others.听
听
Given the concerns expressed by policymakers thus far, Dr. Overton鈥檚 path to confirmation may prove to be difficult, with issues related to timing and Senate procedure creating听additional听complications. Senators Collins (R-ME) and Murkowski (R-AK), who could also have a significant impact on whether her nomination advances, have not yet publicly shared their views on her nomination. The Senate is in recess through September 14, and will be out again from October 1 through November 9, after the midterm elections. With uncertainty听regarding听her path through the Senate HELP Committee under Chair Cassidy鈥檚 leadership, there is a chance that Dr. Overton鈥檚 nomination is delayed until January, after his departure from the Senate, should Republicans听maintain听the Senate majority in November. Once Dr. Overton is formally nominated, current Acting Commissioner Kyle Diamantas may remain in the role past the December date that would have prevented him from doing so had there not been a nominee under the听.听
听
Ultimately, the next confirmed FDA Commissioner will take on leadership of an agency that has experienced听significant change, as well as several ongoing initiatives, including听听and the recently announced听. While Dr. Overton鈥檚 nomination itself may unlock appointments of other senior agency leaders, unlike many of her predecessors, Dr. Overton will not inherit a seasoned cadre of long-serving center directors, deputy commissioners, and senior career executives with decades of institutional knowledge. This will certainly increase the management challenges facing her as a first-time commissioner.听
HHS Seeks Public Input on Federal Vaccine Recommendation Categories
On August 21, HHS, through the Office of the Secretary,听听a听听(RFI) seeking public input on the categories used in federal vaccine recommendations and the role of 鈥渟hared clinical decision-making鈥 in the recommendation and administration of childhood vaccines. The Administration has recently renewed its effort to revise the childhood vaccine schedule through an Executive Order () that directed HHS agencies to take 鈥渁ny appropriate steps鈥 to advance the revised schedule, which reduces the number of vaccines recommended in total and shifts multiple vaccines from being recommended as routine for all children to being recommended based on 鈥渟hared clinical decision-making鈥 (SCDM). In the RFI, HHS seeks input on the three categories of routine, risk-based, and SCDM, as well as category assignments and whether听additional听categories should be adopted, including 鈥渞ecommended, but not during infancy,鈥 and 鈥渞ecommended with qualification.鈥 In the RFI, HHS also acknowledges certain challenges related to the SCDM category that have been听observed听over time, including听additional听time to implement SCDM recommendations and confusion听regarding听insurance coverage of SCDM vaccines. The RFI requests responses to several questions related to SCDM recommendations including how to ensure that patients understand the coverage requirements that apply to SCDM vaccines. It also asks whether the categories convey differences in the strength of the evidence for individual and population benefits.听听
HHS states in the RFI that responses will be reviewed by the Task Force on Safer Childhood Vaccines, which was听听by HHS in August 2025 and is tasked in the EO with advancing the new schedule. The RFI does not discuss the role of the CDC or the CDC Director in adopting potential changes to recommendation听categories听and it is unclear what level of input, if any, the new CDC Director had in the RFI. The RFI is open for public comment until September 20.听
CDC Director Erica Schwartz Delivers First Agency-Wide Address
On听August 20, CDC Director Dr. Erica Schwartz gave her first 鈥渁ll-hands鈥澨听to agency staff. As noted in her nomination hearing, Dr. Schwartz听reportedly shared听with staff her three听initial听priorities: 鈥渆arning trust through transparency and scientific rigor, strengthening CDC鈥檚 ability to detect and respond to health threats, and deepening partnerships with states and communities.鈥澨听
She also听听sought听to assure staff that she is comfortable disagreeing with Administration leadership when needed, and that they should feel safe doing the same with her. Dr. Schwartz鈥檚 confirmation as CDC Director coincides with the renewed听听from the Administration to revise the childhood vaccine schedule, which is recommended by CDC鈥檚 Advisory Committee on Immunization Practices and听ultimately requires听the signoff of the CDC Director. Disputes over this process听ultimately led听to the departure of the last CDC Director, Dr. Susan Monarez.
FDA Lays Groundwork for Generative AI Medical Device Regulation
On听August 18, FDA听听a discussion paper on considerations for the regulation of generative AI-enabled medical devices, in which it proposes to take a risk-proportionate approach based on the device鈥檚 intended use. In evaluating risk, FDA is considering drawing distinctions between patient-facing, informational functions versus healthcare provider-facing information functions, as well as distinctions between healthcare generalists versus specialists. The paper seeks public feedback on topics such as risk assessment, premarket evaluation, post–market monitoring, and other issues relevant to the regulation of these devices. FDA鈥檚 Digital Health Center of Excellence (DHCoE) is leading the effort as part of the agency鈥檚 broader work to advance regulatory frameworks for AI and digital health technologies. Throughout the document, FDA states it is committed to working collaboratively with stakeholders, including clinicians, 鈥渢o develop efficient, scientifically sound, and least burdensome approaches鈥 to regulating AI devices. The discussion paper is open for听听until October 19.
Ready to talk about your organization's challenges?
Schedule a ConsultationState Policy News
CMS Awards New Rural Health Transformation Program Funding to Alabama, Alaska, North Dakota, Ohio, and West Virginia
The Centers for Medicare & Medicaid Services (CMS)鈥on August 24, 2026,听new Rural Health Transformation Program (RHTP) funding awards to Alabama, Alaska, North Dakota, Ohio, and West Virginia to strengthen rural healthcare access, expand behavioral health and maternal health services, support healthcare workforce development, improve care coordination, and advance health information technology initiatives. The awards highlight continued federal investment in addressing healthcare challenges facing rural communities through innovative delivery models and infrastructure improvements.听
Alaska Receives $160 Million for Rural Healthcare Innovation听
Alaska听听$160 million in CMS Rural Health Transformation Program funding to support 142 projects designed to improve rural healthcare delivery across the state. Investments include expansion of behavioral health services, workforce development initiatives, electronic health record modernization, and healthcare technology enhancements.听
Funded projects include robotic-assisted surgery capabilities in Southeast Alaska, development of a tribally led behavioral health and recovery campus, expansion of statewide health information exchange infrastructure, support for the Alaska Family Medicine Residency Program, deployment of AI-enabled imaging technology across 21 hospitals, and drone-based prescription delivery services for remote rural communities.听
North Dakota Funds Rural Care Coordination听
North Dakota听鈥$1 million in RHTP funding to launch the Coordinating and Connecting Care Initiative. The program听seeks听to improve rural care coordination by bringing together patients, healthcare providers, tribal organizations, community partners, and volunteer organizations to听identify听service gaps, improve communication, and strengthen healthcare delivery across rural areas.听
Ohio Expands Rural Pharmacy Connectivity听
Ohio听 $3.2 million in CMS rural health funding to enhance pharmacy connectivity and improve healthcare integration for rural providers. Nearly $1.2 million will support expanded access to the Ohio Automated Rx Reporting System (OARRS), while $2 million will improve pharmacist access to patient medical records, strengthen medication management programs, and reduce adverse drug events.听
West Virginia Improves Rural Medical Transportation听
West Virginia听听$4.2 million in Rural Health Transformation Program funding to expand medical transportation services and improve patient access to care. The initiative will increase transportation capacity, broaden service availability, and expand geographic coverage for patients in rural and underserved communities.听
Louisiana Medicaid Releases Dental Benefit Program Manager RFP for 1.5 Million Members
The Louisiana Department of Health (LDH)鈥鈥痮n August 21, 2026, a request for proposals (RFP) seeking up to two Medicaid Dental Benefit Program Managers (DBPMs). Selected contractors will听be responsible for听running the Medicaid dental program serving approximately听1.5 million individuals. Goals of the procurement include improved coordination of care, better dental health outcomes, increased quality of dental care, improved access to essential specialty dental services,听outreach听and education to promote dental health, and increased enrollee responsibility and self-management. Incumbent DBPMs are MCNA and听DentaQuest. Contracts will run from January 1, 2027, through December 31, 2030, with optional renewals for up to 24听additional听months. Proposals are due September 30.听
Maine Proposes Stricter Medicaid Provider Inspections, Payment Suspensions
Maine鈥檚 Department of Health and Human Services鈥鈥痮n August 19, 2026, new听MaineCare program-integrity rules in response to two citizen petitions. The proposal would require in-person inspections of provider locations during enrollment, audits, and fraud investigations; permit sanctions when providers deny access; and prohibit replacing fraud-related inspections with desk reviews or electronic document submissions. The rule would also require MaineCare to suspend and escrow payments when a provider receives notice of an alleged improper payment, overpayment, or billing violation of at least $1,000. Providers could challenge the order through informal review and an administrative hearing, but the payment suspension would remain in place during the appeal, and providers would听generally have听to continue delivering medically necessary services to existing听MaineCare听members. A public hearing is scheduled for September 10, 2026, and comments are due September 20, 2026.听
Virginia Launches 鈥楰eep Virginia Covered鈥 Initiative as Medicaid Work Requirements Take Effect
WTKR鈥鈥痮n August 25, 2026, that Virginia Governor Abigail Spanberger signed an executive order creating the 鈥淜eep Virginia Covered鈥 initiative in response to the federal budget reconciliation act (P.L. 119-21, OBBBA). The order directs state agencies to help residents听maintain Medicaid coverage, identify alternative health insurance options, and听participate in regional outreach workshops. State officials estimate that approximately 300,000 residents听are potentially at risk of losing coverage because of the new work requirements. Officials also warned that changes affecting the Supplemental Nutrition Assistance Program (SNAP) could put benefits for听roughly 7,000听residents at risk.听
Private Market News
Fueled By
Providence Health Plan Shutdown Highlights Mounting Pressure in Medicare Advantage Markets
Providence听Health Plan is shutting down entirely after negotiations with a national insurer to continue its Medicare Advantage business fell through, affecting more than 64,000 members. The closure follows Providence鈥檚 planned exit from its commercial, Medicaid, individual, and employer markets, amid high medical costs, regulatory pressures, and competition from national insurers.
Cityblock Health Acquires Homeward Health to Expand Medicaid and Medicare Advantage Services
Cityblock听Health听听that it has signed a definitive agreement to听acquire听Homeward Health in an all-stock transaction. The acquisition will pair听颁颈迟测产濒辞肠办鈥檚听urban Medicaid and dual-eligible care platform with听贬辞尘别飞补谤诲鈥檚听rural Medicare Advantage model, expanding the company鈥檚 reach across听government-sponsored healthcare populations in rural areas.听Cityblock听currently serves听nearly 200,000听members, while Homeward serves approximately 50,000 members through partnerships with health plans and rural providers.
Our Insights
Fueled By Experts Across Our 红领巾瓜报 Companies
红领巾瓜报
Webinar: Modernizing and Streamlining Health Plan Prior Authorization (Sept. 9)
During听this webinar,听leaders听from 红领巾瓜报 and NTT DATA will explore the common sources of friction and inefficiency in prior authorization (PA) processes and discuss how modern technology, including artificial intelligence (AI), can help streamline PA operations, improve compliance, and enhance the experiences for health plans, providers, and members. Attendees will gain insights into the evolving regulatory landscape, the root causes of PA administrative burden, and practical strategies for听leveraging听IT modernization to create more efficient, transparent, and effective prior authorization workflows.
CMS鈥檚 Proposed Provider Tax Rule Could Reshape Medicaid Financing
The Centers for Medicare & Medicaid Services (CMS) has proposed significant changes to how鈥疢edicaid provider taxes鈥痑re structured, reported, and听monitored. Issued in response to the鈥疻orking Families Tax Cut Act (WFTCA), the proposed rule would affect provider tax grandfathering, hold harmless thresholds, reporting requirements, and permissible tax classes, with important implications for states, Medicaid agencies, health plans, providers, and other healthcare stakeholders.听
In this brief, our听红领巾瓜报听team听breaks down听the proposal into practical, actionable insights. It highlights what is changing, what听remains听uncertain, and the operational and financial considerations organizations should evaluate as CMS moves toward a final rule.
Webinar Replay: Rural Health Transformation Program: Beyond the Grant Approval Phase 鈥 Implementing for Sustainability
In听this听webinar,听our听红领巾瓜报听team听explored听how the implementation of RHTP initiatives can drive sustainable improvement in the health status of the citizens of rural communities. They听discussed听approach听to听help ensure听RHTP implementation听can create a more financially听viable听healthcare provider.听听model in rural communities.听
Wakely
ACA Supplemental Claims Are Reshaping Risk Adjustment Strategy
Supplemental claims have become a critical driver of ACA risk adjustment accuracy, financial performance, and RADV preparedness for health plans. According to Wakely鈥檚 2025 ACA Supplemental Claims Impact white paper, supplemental claims increased average Plan Liability Risk Scores (PLRS) by 7.3% in the individual market and 3.3% in the small group market, with results varying听considerably across听issuers and states.听
For healthcare executives, actuarial leaders, and risk adjustment teams, the findings underscore the need for a strategic approach to supplemental claims.听In this new听brief,听our听Wakely听team听addresses why healthcare organizations that invest in a comprehensive ACA risk adjustment strategy are better positioned to improve reimbursement accuracy, reduce audit exposure, and strengthen long-term financial performance.听
红领巾瓜报 Conference 2026
Signals, Signs & Flashing Lights | October 5-7 | New Orleans
RFP Calendar
RFP Calendar
| Date | State/Program | Event | Beneficiaries |
|---|---|---|---|
| Date: Summer 2026 | State/Program: Illinois Foster Care | Event: RFP Release | Beneficiaries: 33,000 |
| Date: July 28, 2026 (Delayed) | State/Program: Nevada Children's Specialty | Event: Awards | Beneficiaries: NA |
| Date: August 2026 | State/Program: Indiana | Event: RFP Release | Beneficiaries: 1,400,000 |
| Date: January 1, 2027 | State/Program: Illinois | Event: Implementation | Beneficiaries: 2,400,000 |
| Date: January 1, 2027 | State/Program: Nevada CO D-SNP | Event: Implementation | Beneficiaries: 88,000 |
| Date: January 1, 2027 | State/Program: Wisconsin LTC GSR 3 | Event: Implementation | Beneficiaries: 56,000 (all GSR) |
| Date: January 1, 2027 | State/Program: Illinois Tailored Care Management Program | Event: Implementation | Beneficiaries: 22,400 |
| Date: July 1, 2027 | State/Program: Nevada Children's Specialty | Event: Implementation | Beneficiaries: NA |
| Date: September 2, 2026 | State/Program: Missouri | Event: Proposals Due | Beneficiaries: 1,000,000 |
| Date: Fall 2027 | State/Program: Oregon | Event: RFP Release | Beneficiaries: 1,200,000 |
| Date: January 1, 2028 | State/Program: Wisconsin LTC GSR 4,6 | Event: Implementation | Beneficiaries: 56,000 (all GSR) |
| Date: 2028 | State/Program: North Carolina | Event: RFP Release | Beneficiaries: 2,200,000 |
| Date: 2029 | State/Program: California | Event: RFP Release | Beneficiaries: NA |
