Weekly Roundup -
July 8, 2026
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Unmatched Healthcare Insights from 红领巾瓜报,
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Featured:
Can Better Program Integrity Lead to Better Behavioral Health?
LISTEN NOWMedicaid Community Engagement Interim Final Rule:听Key Implications for States, Payers, and Providers
READ BRIEFTrending: In Focus
红领巾瓜报 Names Arda Ural Chief Operating Officer
OKEMOS, Mich., July 8, 2026 鈥 红领巾瓜报 (红领巾瓜报), a national leader in health and human services consulting, today announced Arda Ural will serve as the firm鈥檚 chief operating officer (COO), effective July 6.
Ural is an accomplished and innovative healthcare executive with over 30 years of leadership experience. His operational expertise has led to profitable growth across the professional services and life sciences industries.
鈥淎rda is an internationally recognized expert in the life sciences sector and has an exceptional track record of leading growth and innovation at every step of his career,鈥 said Chuck Milligan, 红领巾瓜报鈥檚 chief executive officer. 鈥淲e are excited to welcome Arda to 红领巾瓜报. I am confident his strong leadership and significant operational experience will help propel our company and our clients to solve the toughest challenges in healthcare and human services.鈥
鈥淚 am excited to help drive 红领巾瓜报鈥檚 unique mission to improve lives by helping our clients make health and human services more accessible, effective, and sustainable,鈥 said Arda Ural, PhD.
Prior to joining 红领巾瓜报, Ural was the Americas Life Sciences leader at EY, accountable for strategy, consulting, M&A, technology, tax, and assurance businesses 鈥 driving significant revenue growth. Ural previously served as Accenture鈥檚 managing director of the life sciences M&A practice and before that was vice president of strategic marketing at Becton Dickinson, where he also led the Fortune 500 medtech company鈥檚 business unit. At Eyetech Pharmaceuticals Ural served as senior vice president of marketing and sales, building commercial capabilities for the biotechnology company through its initial public offering which led to its acquisition. During his 10 years in leadership roles at Pfizer he led the multi-billion dollar global launch of Viagra and managed the U.S. Celebrex franchise.
Ural will be based in 红领巾瓜报鈥檚 New York City office.
About 红领巾瓜报 (红领巾瓜报)
红领巾瓜报 is an independent, national research and consulting firm specializing in publicly funded healthcare and human services policy, programs, financing, and evaluation. We serve government, public and private providers, health systems, health plans, community-based organizations, institutional investors, foundations, and associations. With multidisciplinary consultants coast to coast, 红领巾瓜报’s expertise, services, and team are always within client reach.
CY 2027 OPPS Proposed Rule Signals Major Changes for 340B Hospitals, Site-Neutral Payments, and Digital Health
The Centers for Medicare & Medicaid Services (CMS) released the听 proposed rule (CMS-1850-P), July 2, outlining policies that would take effect, if finalized, January 1, 2027. Although the proposed rule includes annual payment updates, it also offers insights into the agency鈥檚 broader policy agenda.听
CMS continues to advance several long-term priorities, including site-neutral payment reform, elimination of the inpatient only list to migrate services to lower-cost settings, and efforts to align reimbursement more closely with acquisition costs for pharmaceuticals purchased through the 340B Drug Pricing Program. CMS is refining its policies that encountered operational or legal challenges, most notably in the case of its 340B payment proposals.听
The听rule also signals how听CMS is preparing听Medicare听for the next generation of healthcare delivery. As software-based therapies, artificial intelligence, and other听health听technology听become increasingly integrated into care delivery,听the agency is听laying听the groundwork for payment policies that reflect evolving care models and emerging medical innovation.听听听
This article听highlights five听proposals听that may have significant financial, operational, and strategic implications across the healthcare听system.听听
Highlights听of Key听Changes in the听OPPS听Proposed听Rule听
1. CMS Intends to Cut to Reimbursement for Drugs Acquired Under the 340B Program听
Based on findings from a survey of hospital acquisition costs, CMS proposes reducing reimbursement for drugs acquired through the 340B Drug Pricing Program from Average Sales Price (ASP) plus 6 percent to ASP minus 33.4 percent beginning in CY 2027. CMS estimates the policy could reduce Medicare fee-for-service (FFS) drug spending by $4.55 billion in its first year, which would be redistributed to non-drug service payments under OPPS鈥檚 budget neutrality rules.听
The proposal would similarly reduce payment rates for 340B drugs paid under alternative methodologies, including those reimbursed using Wholesale Acquisition Cost (WAC). Vaccines, pass-through drugs, and certain non-opioid pain management products would remain exempt, as would Children’s Hospitals, Sole Community Hospitals, and PPS-exempt听cancer听hospitals.听
CMS also proposes applying the policy to 340B drugs administered in non-excepted off-campus provider-based departments while leaving reimbursement for non-340B drugs unchanged.听
红领巾瓜报 (红领巾瓜报)听Analysis:听CMS is effectively continuing a policy听discussion听that has been听ongoing听for听nearly a听decade.听Although听prior litigation altered the agency’s听approach, the proposal听demonstrates听CMS’s continued interest in aligning Medicare reimbursement more closely with acquisition costs for 340B drugs. The financial implications will vary significantly across hospitals depending on their reliance on 340B savings. At the same time, providers with limited 340B exposure may听benefit听from the budget-neutral redistribution of savings elsewhere in the OPPS payment system.听
2. Because of the 340B Payment Cuts, Hospitals Will See an Increase in the Conversion Factor Used to Set Payments for Most Non-Drug Items and Services 听
CMS proposes an overall听2.4 percent payment听increase in OPPS payments for CY 2027, but听payment levels will vary under the rule based on major policy changes.听The proposed 340B payment reduction, for instance, would trigger an 8.44听percent听increase听in听the conversion factor听for non-drug services.听CMS is also proposing听a听conversion factor reduction of 3 percent听intended听to recover听increased payments听hospitals received听for non-drug items and services听as a result of听CMS鈥檚 remedy related to听prior 340B reimbursement听cuts.i听
红领巾瓜报 Analysis:听The proposed payment updates听illustrate how interconnected Medicare payment policies have become. Organizations should look beyond the headline听increase听and evaluate how individual provisions interact. The proposed reduction in 340B reimbursement serves as a budget-neutral offset that increases the OPPS conversion factor, creating winners and losers across provider categories.听Separately, the proposal would accelerate the pace and听magnitude听of听legal-remedy-related rate reductions originating from the听termination of an earlier iteration of the 340B payment reduction policy.听Understanding this redistribution effect will be critical for forecasting organization-specific financial听effects.听
3. More Proceduresare Moving to the Outpatient Setting听
CMS proposes removing 638听procedures from the Medicare Inpatient听Only (IPO) list in CY 2027,听representing听nearly half听of the remaining procedures听designated听as听such.听The proposed removals focus on less complex services across several clinical听areas, including digestive, endocrine, respiratory, urinary, maternity, and other procedural categories.听
红领巾瓜报 Analysis: This proposal continues CMS’s long-term strategy of shifting appropriate services to outpatient settings. As the IPO list continues to shrink, hospitals will have greater flexibility to conduct procedures in the outpatient setting than in the past. At the same time, hospitals billing for certain previously IPO-listed services in inpatient settings could encounter greater scrutiny and pressure to migrate towards outpatient sites. Because many commercial coverage policies and听utilization听management approaches have historically relied on Medicare’s IPO framework, the proposal may accelerate broader market movement toward outpatient care, creating operational, capacity, and revenue implications for providers.听
4. Site-Neutral Payment Reform Remains a Long-Term CMS Priority
CMS proposes extending site-neutral payment policies to imaging services without contrast provided in excepted off-campus provider-based departments (PBDs). The agency notes substantial growth in the听utilization听and spending associated with these services over the past decade and views the proposal as a continuation of broader efforts to reduce听payment听differentials across sites of care.听This proposal follows CMS’s recent expansion of site-neutral payment policies for drug administration services.听
红领巾瓜报 Analysis:听The proposal reinforces that site-neutral payment reform听remains听a priority for CMS.听Although听the immediate policy targets imaging services without contrast, stakeholders should view the proposal within the context of a broader and continuing effort to reduce payment differentials between hospital outpatient departments and physician office settings. Hospitals with significant outpatient imaging capacity鈥攑articularly in off-campus PBDs鈥攕hould evaluate the potential听financial impact听and consider how future site-neutral policies could affect other service lines.听Hospitals should also听anticipate听incremental additions to this framework听in the future, as CMS continues to scrutinize听site-of-care allocations for听services.听听
5. A Future Framework for AI and Digital Health is in the Works, While Maintaining Existing Policies in the Short Term听听
Recognizing the growing role of software and AI-enabled technologies in healthcare delivery, CMS proposes using CY 2027 as a bridge year while it develops a longer-term payment approach for technologies categorized as Software as a Medical Service (SaMS).听Under the proposal, technologies currently assigned to听New Technology听Ambulatory Payment Classifications (NT-APCs)听would听generally maintain听their payment assignments during CY 2027.听
红领巾瓜报 Analysis:听Although the proposal preserves near-term payment stability, it may be one of the most consequential signals in the rule for manufacturers, digital health companies, investors, and providers adopting听new technologies. CMS is exploring how software-based interventions, AI-enabled tools, and algorithm-driven services generate value and how that value should be reflected in Medicare payment policy. Future reimbursement methodologies听will听likely place听greater emphasis on听demonstrated听clinical outcomes, efficiency gains, and measurable impacts on healthcare听utilization. Organizations developing or deploying these technologies should view CY 2027 as an opportunity to prepare for a more mature reimbursement framework in the years ahead听and to engage with CMS on preferred policy approaches.听
Looking Ahead听
The CY 2027 OPPS proposed rule provides insight into the direction of Medicare reimbursement policy,听changes in Hospital Conditions of Participation (CoP)听for听obstetrical services, and planned revisions to the exceptions to the 鈥渇our walls鈥 requirement under the Medicaid clinic benefit for Indian Health Services/Tribal clinics, behavioral health clinics, and clinics听located in rural areas.听For hospitals, health systems, manufacturers, life sciences companies, digital health organizations, and investors, now is the time to assess potential impacts and evaluate strategic responses before policies are听finalized.听Comments on听the听proposed rule are due August 31, 2026.听
红领巾瓜报 is helping organizations understand the financial, operational, and market implications of the proposed rule through:听
- Customized听financial impact听modeling听
- 340B reimbursement and redistribution analyses听
- Site-neutral payment impact听analyses听
- Clinical service line and specialty-specific analyses听
- Medicare听and Medicaid听policy scenario planning and forecasting听
- Regulatory comment strategy development听
As CMS continues to听pull听the thread on several long-term policy priorities, organizations that begin planning now will be better positioned to navigate the changes ahead. Contact 红领巾瓜报’s Medicare experts to discuss how these proposals may affect your organization and explore potential strategic responses before the final rule is released.
Federal Policy News
Fueled By Weekly Health Intelligence
New CMS Proposals Spotlight Home Health, ESRD, and End-of-Life Care
Last week,听the听Centers for Medicare听&听Medicaid Services (CMS)听released the听Calendar听Year (CY)听2027 Home Health Prospective Payment System听听and the CY 2027 End-Stage Renal Disease (ESRD) Prospective Payment System听.听
- In the CY 2027 Home Health Prospective Payment System proposed rule, CMS proposes to increase Medicare payments to home health agencies (HHAs) by an estimated 2.4 percent, or $420 million, compared to CY 2026. Furthermore, the proposed rule includes several Medicare enrollment and program integrity provisions aimed at reducing fraud, waste, and abuse, which come as CMS has 听home health programs for being at听high risk听of fraud. The proposed rule is open for public comment until August 31.听
- In the CY 2027 End-Stage Renal Disease (ESRD) Prospective Payment System proposed rule, CMS proposes an ESRD base payment rate of $299.55, and an increase in total payments to ESRD facilities by 1.1 percent compared to CY 2026, along with certain policy changes. The proposed rule is open for public comment until August 24.听听
Notably, in both proposed rules discussed above, CMS听indicates听interest in stakeholder feedback on opportunities to improve end-of-life care for Medicare patients. This includes an RFI in the Home Health Proposed Rule in which CMS is seeking stakeholder feedback on ways to improve access to community-based palliative care services through existing Medicare benefits, as well as a request for feedback on the potential inclusion of a Patient-Reported Outcome Performance measure in the ESRD proposed rule focused on discussions of patient life goals.听听
HHS Sets Timeline to End COVID-19 Emergency Use Authorizations for Drugs, Biologics, and Devices
On June 30,听the US Department of Health and Human Services听(HHS)听Secretary Robert F. Kennedy, Jr.听听the termination of all Emergency Use Authorization (EUA) declarations previously used for drugs, biologics, and medical devices that treat COVID-19. EUAs are a regulatory mechanism that听permit听FDA to authorize certain unapproved medical products for emergency use under specific statutory criteria. EUAs aim to听expedite听public access to treatments during public health emergencies. During the COVID-19 pandemic, the federal government issued EUAs for several medical products to diagnose, prevent, and treat COVID-19. Secretary Kennedy听stated that the EUAs for COVID-19 treatments will be terminated听because听the circumstances that听necessitated听the EUAs for these products no longer exist. The EUAs issued for drugs and biologic treatments for COVID-19 will end on June 29, 2027, while EUAs for medical devices will end on December 26, 2026.
FDA Launches PreCheck Pilot Program to Accelerate Domestic Pharmaceutical Manufacturing
On June 29,听the听US Food and听Drug Administration (FDA)听听its听selection of听seven participating manufacturers in the听PreCheck听Pilot Program.听Following a听鈥痗alling for expanded domestic pharmaceutical development and manufacturing, FDA听听the program, which is intended to increase regulatory predictability and incentivize domestic pharmaceutical manufacturing by streamlining facility assessments for manufacturers constructing new sites in the听United听States. The selection of program participants marks the beginning of Phase I of the program, called 鈥淔acility Readiness Phase.鈥 During this phase, participants will have access to technical advice from FDA, including pre-operational reviews, to streamline the development of their domestic facilities. Phase II of the program, the 鈥淎pplication Submission Phase,鈥 will provide participants with facility-focused pre-submission meetings with FDA to allow for expedited and earlier inspections during the drug application review process.听听
The seven manufacturers selected for participation will support domestic manufacturing of sterile injectables, cell-based gene therapies for oncology and hematology diseases, respiratory and听ophthalmic听diseases, and active pharmaceutical ingredients.听
Congress Advances Tax-Exempt Hospital Transparency Legislation with New Reporting Requirements
On July 1, the House Ways and Means Committee voted to advance听, the Tax Exempt Hospital Transparency Act, during a full committee of several tax-related bills. The legislation would require tax-exempt hospital organizations to report additional information on IRS Form 990, including information regarding financial assistance provided to patients and the hospitals鈥 efforts address the community health needs identified in community health needs assessments currently required by law.听
The legislation would require certain higher-revenue tax-exempt hospital organizations to provide听additional听information on advertising expenditures, health service lines, and, in the case of 340B covered entities, certain 340B-related data elements.听听
During the markup, majority members of the committee applauded the legislation as a transparency measure which will promote accountability for tax-exempt hospitals, which they emphasized receive these tax exemptions with the expectation that they will provide 鈥渕eaningful charitable benefits鈥 to their communities. Minority members of the committee criticized the legislation for placing potentially burdensome administrative requirements on these hospitals. The committee approved the legislation in a 听along party lines.听听听听
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Centene to Exit Arkansas Medicaid Expansion Market, Affecting ARHOME Coverage Options
The Arkansas Advocate鈥鈥痮n July 6, 2026, that Arkansas officials confirmed that Centene will stop听participating听in听听(ARHOME), the state鈥檚 Medicaid expansion program, next year. Centene currently听operates听three of ARHOME鈥檚 six qualified health plans鈥擜mbetter, QCA Health Plan, and听QualChoice听Life and Health鈥攚hich cover听roughly one-third听of the program鈥檚 more than 211,000 enrollees. The Arkansas Department of Human Services said affected members will be transferred to other eligible plans, with听additional听open enrollment guidance expected.听
Indiana Details Medicaid Work Requirements for 2027, Including Three-Month Compliance Lookback
The Indiana Family and Social Services Administration (FSSA)鈥鈥痮n July 6, 2026,听new details听on the upcoming federal Medicaid work requirements for the Healthy Indiana Plan (HIP), the state鈥檚 Medicaid expansion program, set to begin on January 1, 2027. HIP members who are not exempt will need to complete听80 hours听per month in employment, job training, education, or community service. The requirements will have a听three month听lookback period, requiring individuals applying in January 2027 to show compliance for October, November, and December 2026. Exemptions may apply for pregnancy, caregiving responsibilities, medical frailty, SUD treatment, or recent release from incarceration.听
Missouri Issues Medicaid Managed Care RFP for Statewide Health Plan Contracts
The Missouri Department of Social Services, MO HealthNet Division鈥鈥痮n July 1, 2026, a request for proposals (RFP) to provide statewide Medicaid managed care services through the MO HealthNet Managed Care Program. The procurement includes both a General Plan, covering major managed care eligibility groups such as parents, children, pregnant women, Children鈥檚 Health Insurance Program (CHIP) members, and the adult expansion population, and a Specialty Plan, Show Me Healthy Kids, for children in state custody, adoption subsidy children, and certain children receiving private duty nursing services. The state intends to award up to three General Plan contracts and one Specialty Plan contract. Current incumbents are Centene/Home State Health Plan, UnitedHealthcare, and Healthy Blue/Anthem, while the current Specialty Plan is managed by Centene.听
The RFP emphasizes statewide access, care management, chronic disease management, value-based purchasing, alternative payment models, member and provider incentives, quality improvement, encounter data reporting, and coordination with state initiatives such as Show-Me Extension for Community Healthcare Outcomes and the Transformation of Rural Community Health program. A pre-proposal teleconference regarding this RFP will be held on July 21. Proposals are due September听2听and readiness reviews are听anticipated听to begin January 1, 2027, through March 30, 2027. Contracts will run for one year, with four optional one-year renewals.听
North Carolina Governor Signs $34 Billion Fiscal 2027 Budget Fully Funding Medicaid
North Carolina Governor Josh Stein the state鈥檚 $34.4 billion budget for fiscal 2027, which includes a $9.3 billion state appropriation for the Department of Health and Human Services, including more than $1 billion for Medicaid. The budget fully funds Medicaid and includes $25 million in nonrecurring funds to restart North Carolina鈥檚 Healthy Opportunities Pilot (HOP), which provides rural members with services related to social determinants of health. The HOP funding is significantly less than the amount requested by stakeholders and is below prior funding levels. This is the first new spending plan the state has passed since 2023.
Oregon Announces Additional $97.1 Million in RHTP Funding Awards
The Oregon Health Authority (OHA)鈥鈥痮n July 7, 2026, that it has issued an听additional听$97.1 million in grant funding awards for the Rural Health Transformation Program (RHTP), bringing the total amount of grant funding awards from RHTP funds to $175.3 million. The grants were awarded through two pools; the competitive Catalyst Award grants provided $80.1 million to 85 organizations that will lead projects and initiatives addressing maternal and child health, mental health conditions and substance use disorder, aging in place, or chronic disease. The Immediate Impact Awards provided $17 million to projects addressing mobile health unit expansion, creating a new family medicine residency training program, and connecting patients with nutritious food to address diet-related conditions.听
Private Market News
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CMS Goes Live with GLP-1 Bridge Program for Part D Beneficiaries
Eligible people enrolled in Medicare Part D can secure certain GLP-1 medications for weight loss or management at $50 each month. The program will remain in place through the end of 2027.听
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Evernorth Invests $100 Million in AI-Powered Specialty Pharmacy Platform to Improve Care Coordination
Evernorth听听an听AI-powered specialty pharmacy program. The program, called Pharmacy Forward, will use AI technology to achieve more coordinated care. It is backed by a $100 million investment and will begin with听贰惫别谤苍辞谤迟丑鈥檚听Accredo specialty pharmacy by using AI to help find at-risk patients, reduce documentation time, and reduce the time it takes for patients to receive prescriptions.
Our Insights
Fueled By Experts Across Our 红领巾瓜报 Companies
红领巾瓜报
Can Better Program Integrity Lead to Better Behavioral Health?
Behavioral health is essential to whole-person care, but obstacles include fragmented systems, rising costs, and paperwork burden. On this episode of 红领巾瓜报 Vital Viewpoints on Healthcare, 红领巾瓜报 Principal Alyssa Lord, former Secretary of Maryland鈥檚 Behavioral Health Administration, discusses how behavioral health integration and program integrity can work hand in hand to improve care. Alyssa shares practical strategies for building more connected, effective, and sustainable behavioral health systems by supporting Medicaid innovation that reduces administrative burden while strengthening accountability.
July 15 Webinar: Understanding Work and Community Engagement Requirements and New Section 1115 Guidance
This webinar series will deliver timely analysis and actionable insights on the evolving policy and operational environment affecting Medicaid funding, enrollment, and access to services. Each session will feature up-to-the-moment information and perspectives from our subject matter experts, with content tailored to reflect the latest federal guidance, waiver activity, litigation, state implementation decisions, and market developments.
A Summer Webinar Series (August 12): How New Program Integrity Expectations Affect Medicaid Payments
This听webinar听series will deliver听timely听analysis and actionable insights on the evolving policy and operational environment affecting Medicaid funding, enrollment, and access to services. Each session will feature up-to-the-moment information and perspectives from our subject matter experts, with content tailored to reflect the latest federal guidance, waiver activity, litigation, state implementation decisions, and market developments.
Wakely
Final 2027 HHS HCC Risk Adjustment Model Impact Estimates
This paper analyzes how the final 2027 HHS-HCC ACA risk adjustment model changes affect issuer risk scores and risk transfer payments. Using benefit year 2025 data from Wakely鈥檚 National Risk Adjustment Reporting (WNRAR) project, the report estimates the听financial impact听of moving from the final 2025 HHS-HCC model to the final 2027 HHS-HCC model for Affordable Care Act individual and small group markets.
RFP Calendar
RFP Calendar
| Date | State/Program | Event | Beneficiaries |
|---|---|---|---|
| Date: June 24, 2026 (Delayed) | State/Program: Wisconsin LTC GSR 3 | Event: Awards | Beneficiaries: 56,000 (all GSR) |
| Date: Summer 2026 | State/Program: Illinois Foster Care | Event: RFP Release | Beneficiaries: 33,000 |
| Date: July 28, 2026 | 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 |