Confusion Surrounding the Rural Health Transformation Program Continues

On July 25, the White House issued a statement regarding the Rural Health Transformation Program (RHTP). Through the initiative, the federal government will provide $50B over the course of five years to eligible states to drive innovation and sustainability of healthcare in these areas. Soon after the White House announcement, Chuck Schumer (D-NY), Ron Wyden (D-OR), and other Democratic senators sent a letter to CMS administrator, Dr. Mehmet Oz, asking for the agency to provide states, rural hospitals, and healthcare providers with a staff-level briefing and provide clarity on access to funds and a written response to their questions by August 15, 2025. Information requested includes anticipated breakdowns of funds to rural health provider types, CMS’ intentions to create an award formula, appeals process, and a public facing website. There have also been challenges regarding how the agency plans to award funding, as some states (such as Ohio, Louisiana and Alabama) have announced they have already secured funds. The Senators requested CMS to provide information regarding which states have already been promised funding, how much has already been allocated, and to whom (White House, July 25; Inside Health Policy, July 25; Senate Democrats, July 25).

Trump Administration and CMS Announce Digital Health Data Transparency and Accessibility Standards

On July 30, the White House hosted a “Make Health Tech Great Again” event, aimed at modernizing the US digital health infrastructure and announced moves to garner support from leaders in the industry around making patient data more accessible to patients and physicians. CMS reports that 60 companies, including Amazon, Anthropic, Apple, Google, and OpenAI, have pledged their support and intend to work on this initiative in the first quarter of 2026. Additionally, 21 networks have committed to becoming CMS Aligned Networks, 11 health systems and providers have committed to participate, and seven Electronic Health Records (EHR) intend to aid in data exchange. CMS has also collected pledges from 30 companies that will work to promote health outcomes with technology through apps that include diabetes and obesity management, conversational AI assistants, and overhaul on-paper intakes and replace them with digital check ins. The “Make Health Tech Great Again” meeting follows a May 2025 RFI and the agency’s prior meetings with patients and doctors to gauge feedback on possible challenges and ideas. At the meeting, CMS provided a progress report on its efforts to enhance the digital health ecosystem:

• Actively building a National Provider Directory with approved and active providers, which is expected to launch later this year. Associated data networks will be asked to make data accessible through the Fast Healthcare Interoperability Resources (FHIR) Health Level 7 (HL7) standard.
• Plans to implement an enhanced Plan Finder for Medicare beneficiaries.
• Working on integrating modern digital identity into Medicare.gov and enhance security.
• Working on integration of digital identity and the National Provider Directory into Data at the Point of Care (DPC).
• Developing a framework to reduce the time between receipt of claims and when they become accessible through the Blue Button, to quicken data availability for both patients and developers.
• Will establish CMS-Aligned Networks to ensure that patients can access their own data, such as records, charts, imaging and labs, using modern identity solutions (Politico Pro, July 25; CMS, July 30; Fierce Healthcare, July 30; Beckers Health IT, July 30).

HHS Unveils Living HHS Open Data Plan to Enhance American Health and Wellbeing

On July 30, the HHS announced its updated HealthData.gov website and publication of the Living HHS Open Data Plan in alignment with President Trump’s Foundation for Evidence-Based Policy Making Act in 2019. Since President Trump took office in January 2025, HHS has increased the number of accessible data sets from 3,000 to 10,000. Through the Living HHS Open Data Plan, the agency looks to streamline data sharing processes, leverage data for innovative solutions across the healthcare and human services sectors, enhance operations, and maximize return on investment (ROI) for taxpayers. Additionally, the updates to the HealthData website offer the public new resources, including: the Living HHS Open Data Plan, HHS Metadata Standard, and HHS Data Inventory (HHS, July 30).

Federal Judge Temporarily Blocks Arkansas’s PBM Law

On July 28, a federal judge temporarily blocked Arkansas’s recently passed pharmacy benefit manager (PBM) law. The law was passed in April 2025 and was intended to prevent PBMs from owning or operating pharmacies in the state starting January 1, 2026, with the goal of assisting small, independent pharmacies. The judge in the US District Court for the Eastern District of Arkansas determined that the law likely violates the Commerce Clause and is likely preempted by TRICARE, the United States’ healthcare program for military members, retirees, and their families. However, the judge noted that Medicare and private employee health plans likely do not supersede the state law, casting doubt on some of the plaintiff’s arguments. He also remarked that Arkansas already has safeguards against PBMs in place. Judicial actions on state laws regulating PBMs have been mixed. For example, the Supreme Court upheld a 2015 Arkansas law regulating the rates PBMs must pay to community pharmacies.  These mixed indicators have left uncertainty about the allowable boundaries for PBM laws (Politico, July 29; Politico, July 1).

Bipartisan Bill Introduced to Create Payment Floor in Medicare Advantage

Last week, Representatives Doggett (D-TX) and Murphy (R-NC) introduced a bipartisan bill to require Medicare Advantage plans to “adequately reimburse” providers for services. The Prompt and Fair Pay Act (House Resolution 4559) was the lawmakers’ response to 27 healthcare providers pulling out of Medicare Advantage contracts in 2025 and estimates from Zimmet Healthcare Services that suggest Medicare Advantage plans underpay skilled nursing facilities. The bill would create a reimbursement floor for Medicare Advantage plans, tied to the Medicare Part A and B fee schedule. Several provider associations like America’s Essential Hospitals, the American College of Physicians, and LeadingAge support H.R. 4559 (Fierce Healthcare, July 23; Rep. Doggett, July 22).

CMS Explores Solution to Fix Insurance Listings

The Centers for Medicare and Medicaid Services (CMS) is considering a national, centralized directory of healthcare providers to address persistent issues with outdated and inaccurate insurance listings. The goal of the centralized directory is to create a shared, up-to-date resource that would improve patient access to care and reduce administrative confusion across health systems. Healthcare leaders and insurers are expressing concern over how such a system would be developed and maintained. Some worry that a national approach could introduce new complexities or reduce competitive advantages between health plans. Despite regulatory requirements for insurers to regularly update their directories, errors are common, sometimes leading to lawsuits over inaccurate provider information  (Modern Healthcare, July 28).

Judge Blocks Trump Administration’s Medicaid Cuts Targeting Planned Parenthood

A judge in the US District Court of Massachusetts blocked the implementation of a Trump administration law that sought to cut Medicaid funding to Planned Parenthood, finding it likely unconstitutional. The judge ruled that the law unfairly targeted all Planned Parenthood locations, even those that do not perform abortions, which potentially violates the organization’s First Amendment right of association. The judge also determined the law meets the definition of a “bill of attainder,” which prohibits punishing specific entities without a trial. Noting that the law excludes for-profit abortion providers and others not primarily focused on family planning, the judge questioned how defunding nonprofit providers in underserved communities helps reduce abortions, especially when it affects clinics that do not offer abortion services (PoliticoPro, July 28).