Health Care

As we’ve covered again and again over the past five years, providers are once more facing the prospect of a telehealth “cliff” if Congress does not take action to extend the Medicare flexibilities for telehealth services that have been in place since March of 2020.  While news is focused on the pending government shutdown, providers and Medicare beneficiaries who have come to rely on the COVID-era waivers and other flexibilities that greatly increased the availability of telehealth are facing the prospect of significantly reduced access to virtual care as of October 1, 2025.  Here is a quick review of what telehealth providers and their patients stand to lose if Congress does not act to extend coverage: 

Over the 2025 summer, the Department of Health and Human Services’ Office of Inspector General (OIG) issued four advisory opinions—two favorable and two unfavorable—that provide valuable guidance for medical device companies and pharmaceutical manufacturers navigating the federal Anti-Kickback Statute (AKS). These opinions address warranty reimbursements, vendor access fees, physician ownership, and exclusion screening costs. Below is a summary of each.

The September 2025 edition of FDA in Flux highlights significant developments shaping the regulatory landscape for medical, life sciences, and consumer product sectors.

PhRMA’s 2025 agenda pushes back on drug pricing reforms, calling for innovation-friendly policies, 340B reform, and PBM accountability.

On May 12, 2025, the Centers for Medicare & Medicaid Services (CMS) issued draft guidance for the third cycle of the IRA’s Medicare Drug Price Negotiation Program (Negotiation Program).

Federal courts continue to uphold the Medicare Drug Price Negotiation Program, with multiple rulings emphasizing the voluntary nature of manufacturer participation. Key legal challenges from AstraZeneca, Boehringer Ingelheim, PhRMA, and others face setbacks as the government remains undefeated.

CMS finalizes 2026 Medicare Part D changes under the IRA, including new cost limits, subsidy guidance, and updated creditable coverage rules.

President Trump issues executive orders and letters to curb drug costs, promote MFN pricing, and reform Medicare’s Negotiation Program.

States and manufacturers clash over 340B contract pharmacy laws as litigation mounts and courts weigh in on the future of pharmacy access protections.

While the pharmaceutical industry has reacted negatively to President Trump’s May 12 “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients” Executive Order (Executive Order), manufacturers appear to be leveraging one of Trump’s directives in the Executive Order, accelerating the industry’s shift toward a new model of drug delivery: direct-to-consumer (DTC) programs.

GLP-1 receptor agonists (GLP-1s) such as semaglutide, and dual agonists like tirzepatide, are transforming obesity treatment and reshaping the US health care landscape.

The CY 2026 Physician Fee Schedule Proposed Rule (PFS Proposed Rule) introduces significant changes to how drug manufacturers must treat Bona Fide Service Fees (BFSFs) when calculating Average Sales Price (ASP) for Medicare Part B drugs.

HRSA launches 340B rebate pilot tied to Medicare drug negotiations, signaling major program shifts amid legal rulings and stakeholder concerns.

CMS proposes OPPS payment cuts and a drug cost survey, signaling major 340B reimbursement shifts and renewed scrutiny of hospital payment rates.

Senate HELP Committee releases 340B report urging transparency, oversight, and reforms amid uncertainty over future federal legislative action.

In a move that underscores the growing urgency around healthcare cybersecurity, the U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) has released version 3.6 of its Security Risk Assessment (SRA) Tool.  The SRA Tool is a free resource designed to help covered entities and business associates conduct HIPAA-compliant risk assessments.  It is particularly focused on small and medium providers and can be a useful tool for any smaller entity subject to HIPAA.  Non-provider entities, including business associates, may need to make modifications to the tool to fit their operations and security infrastructure. 

In a cautionary tale for health care entities, the U.S. Attorney’s Office for the Eastern District of North Carolina recently announced the convictions of two health care executives who admitted to orchestrating a multi-year kickback scheme involving the use of gift cards to incentivize Medicaid patients to attend counseling sessions and submit urine drug tests. Although the Department of Health and Human Services’ Office of Inspector General (OIG) has issued multiple Advisory Opinions green-lighting other programs that include gift card distributions, these convictions underscore the importance of structuring patient incentives in strict accordance with OIG guidance.

The August 2025 edition of FDA in Flux highlights significant developments shaping the regulatory landscape for medical, life sciences, and consumer product sectors. Responding to President Trump’s executive order on reducing regulatory burdens, FDA announced the PreCheck program, with the goal of accelerating onshoring of drug manufacturing. FDA, HHS, and USDA have issued a joint request for data and information to develop a uniform definition of ultra-processed foods (UPF). FDA held a public meeting on August 4 to start negotiation for reauthorizing the Medical Device User Fee Amendments (MDUFA), providing a look at what stakeholders hope to achieve in terms of FDA commitments and performance goals. In July, FDA announced that it is revoking 52 individual “obsolete and unnecessary” food product standard-of-identity (SOI) regulations.

In follow-up to the May 12^th “Delivering Most Favored Nation Prescription Drug Pricing to American Patients” Executive Order, President Trump issued letters to seventeen manufacturers (Letters), reiterating the mandate for manufacturers to provide the United States with most-favored-nation pricing for drugs. 

As we previously reported, the Executive Order gave manufacturers 180 days to negotiate most-favored-nation drug pricing terms with the Department of Health and Human Services (HHS) before the Attorney General and the Chairman of the Federal Trade Commission (FTC) can bring enforcement action against manufacturers for anti-competitive practices. The Executive Order also warned manufacturers that the HHS Secretary and heads of other agencies would consider alternative measures to compel manufacturers to modify drug prices if “significant progress toward most-favored-nation pricing for American patients [was] not delivered.” These measures include, but are not limited to, issuing rulemaking to impose most-favored-nation pricing, certifying to Congress that importation is a viable drug cost-reduction strategy, and modifying or revoking existing drug approvals. 

In a significant legal development, a federal judge has temporarily blocked Arkansas from enforcing Act 624. Act 624 prohibits pharmacy benefit managers (PBMs) from owning or operating pharmacies in the state, effectively forcing vertically integrated companies to divest or shut down their Arkansas pharmacy operations. However, on July 28, 2025, U.S. District Judge Brian Miller granted a preliminary injunction to several major PBMs and affiliated entities, halting the law’s implementation pending final resolution of the case.