Issue #274
Sellers Dorsey Digest
February 19, 2026
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Leading the Nation's Child Welfare System: A Conversation with Children's Bureau Associate Commissioner
Federal News
HHS Publishes Bulk Medicaid Provider Claim Data
A large Medicaid claims dataset has been made publicly available through the Department of Health and Human Services (HHS) open data portal. The Department of Government Efficiency’s (DOGE) HHS team said the provider level billing data is intended to strengthen transparency and fraud detection efforts, pointing to alleged autism diagnosis fraud in Minnesota as an example of how the information could be used. The data includes provider-level Medicaid spending data from January 2018 to December 2024, aggregated to the provider-procedure-month level, and includes fee-for-service, managed care, and CHIP claims. HHS DOGE is seeking public research into the dataset, requesting that the “open-source community” assist in efforts to identify potential fraud, waste, and abuse. The release comes amid continued Republican scrutiny of Medicaid spending and oversight in certain states. HHS stated that privacy safeguards are in place and noted that the effort follows earlier federal initiatives to obtain and analyze state Medicaid claims data for oversight and utilization review (Inside Health Policy, February 13).
CMS Expands ACCESS Model Across Insurance Markets
The Center for Medicaid and Medicare (CMS) announced that its 10-year Medicare Advancing Chronic Care with Effective, Scalable Solutions (ACCESS) model, originally designed for traditional Medicare beneficiaries, is expanding across Medicare Advantage, Medicaid, and commercial insurance markets, potentially reaching 165 million additional Americans by 2028. The voluntary model supports the use of health technologies such as telehealth tools, wearables, and digital applications to manage common chronic conditions including hypertension, diabetes, musculoskeletal pain, and depression. It introduces outcome-aligned payments that reward providers based on results rather than service volume. Several major commercial insurers have pledged to adopt aligned payment approaches and collaborate with primary care providers. The reporting period begins July 5, and organizations must notify CMS by April 1, 2026, to participate. CMS is also developing standardized billing codes and reporting infrastructure to facilitate consistent implementation across payers (Fierce Healthcare, February 13).
HRSA Releases 340B Pilot Program RFI, Following HHS’ Decision to Withdraw Lawsuit Appeal
On February 13, the Health Resources and Services Administration (HRSA) released a public request for information (RFI) on the implementation of a 340B rebate pilot program. The RFI came shortly after the HHS’ statement earlier this month that it would withdraw its court appeal and revise its pilot to align with objectives laid out by the American Hospital Association, the lawsuit’s plaintiffs. The agency’s new pilot program was approved by the Office of Budget and Management on February 11. Included within the RFI are questions relating to expected workforce impacts, costs and impacts on rural safety-net hospitals or a community health center, and how entities collect, maintain and retain related data. Public comments are due on March 19 (Inside Health Policy, February 12; Inside Health Policy, February 13).
CDC Proposes $600M in Public Health Grant Cuts, Temporarily Stopped by Federal Judge
The Centers for Disease Control (CDC) last week announced over $600M in cuts to public health grants in California, Illinois, Colorado, and Minnesota. The Trump administration stated that the grants were being cut to better align with the CDC’s priorities. According to a webpage on the CDC, the agency’s new priorities include updating public health infrastructure, rebuilding trust in the institution, and aligning with the goals and priorities of the Trump administration. The webpage also explicitly calls out diversity, equity, and inclusion initiatives as well as any programs that promote medical services for transgender children as items that will be deprioritized. These grants that were set to be cut last week were included in the bipartisan HHS funding bill that was signed into law by President Trump on February 3. The grants fund a variety of public health issues including health equity, workforce initiatives and training, and sexually transmitted infection prevention efforts. However, the attorneys general in the impacted states filed suit against the administration in a federal district court in Illinois on Wednesday, February 11. The plaintiffs sought and were awarded a temporary restraining order late Thursday, February 12. According to the attorneys general, the cuts seemed to originate from the Office of Management and Budget before being proposed by the CDC on February 11 (Healthcare Dive, February 11; NPR, February 13).
Secretary Kennedy Makes Several Senior Advisor Changes Within HHS
The Department of Health and Human Services has made several shifts in high-level staff positions within the Food and Drug Administration (FDA) and other agencies. Grace Graham, FDA policy chief, and Kyle Diamantas, senior FDA food official, will serve Secretary Kennedy Jr. as joint senior FDA counselors while retaining their original roles. Notably, Graham brings with her deep expertise in congressional policy. She spent time in both chambers of Congress, working with the House Energy and Commerce Committee and, prior to that, the Senate Health Committee on health policy. According to Inside Health Policy, observers in the industry feel that Graham’s appointment in particular could improve and stabilize the agency’s actions. Currently, FDA Commissioner Marty Makary and his associate Vinay Prasad have found themselves at odds with the pharmaceutical industry over their intense scrutiny of vaccines, or in the case of Moderna’s mRNA influenza vaccine, refusal to review entirely. Graham and Diamantas’ new dual positions come as Deputy Secretary of HHS Jim O’Neill prepares to depart the agency. O’Neill also serves as acting director of the CDC and will step down from that position as well. Other shifts in staffing include CMS Deputy Director Chris Klomp taking on the role of chief counselor at HHS and CMS Deputy Administrator and chief policy and regulatory officer John Brooks as senior counselor of CMS. According to intel from FDA staff, federal employees are also preparing for staff restructuring (Inside Health Policy, February 13).
State News
Oklahoma to Establish State-Run Insurance Exchange by 2028
Oklahoma will phase out reliance on the federal health insurance exchange and establish its own marketplace structure by 2028, using web-based brokers for enrollment while the state assumes operational control over plan management and eligibility functions. The transition begins with the state operating on the federal platform in the interim and pursuing a reinsurance waiver to stabilize premiums. State leaders say the change will improve oversight, customer service, and access to enrollment data, while addressing concerns about federal exchange vulnerabilities. The shift was authorized under 2025 state legislation creating a dedicated funding mechanism for exchange operations (Inside Health Policy, February 13).
Delaware’s State Employee Health Insurance Weighs Future of GLP-1 Coverage
Delaware’s State Employee Benefits Committee (SEBC) met on Friday, February 13 to discuss potential coverage revisions to GLP-1s for plan year 2027. According to a report from 2024, weight loss drugs like GLP-1s were the most prescribed and most expensive drugs for state employees. Currently, employees pay $32 for a 30-day supply and $64 for 90 days. Committee members heard plans to increase copays to $120 and $200, revoke coverage of GLP-1s entirely, or remove prior authorization requirements for the drugs to generate increased drug rebates. When coverage for GLP-1s began in 2023, the state allocated $2M, only to have the cost reach $14M by the end of the fiscal year. According to estimates from the SEBC, if Delaware continues to provide coverage as-is, GLP-1s will cost the state approximately $211M by 2029 (Spotlight Delaware, February 15).
Connecticut Governor Unveils Health Plan for Small Businesses
With the recent expiration of enhanced tax credits, Governor Ned Lamont (D-CT) unveiled the “Connecticut Option” on February 4, a publicly designed and privately administered health plan program for small businesses. Included in his request was $1M to the Office of Policy and Management (OPM) to conduct a feasibility study and further explore how to maximize federal funding to both reduce premiums and healthcare costs for eligible enrollees. Additionally, Governor Lamont proposed a tax credit for small businesses with less than 50 employees that offer healthcare coverage through individual coverage health reimbursement arrangements (ICHRAs), allowing these businesses to file for a tax credit of up to $1,000 per year. Connecticut’s state-based exchange, Access CT, currently offers an ICHRA program. The state would reserve up to $5M for eligible businesses, on a first-come first-serve basis. The Governor hopes these proposals will make healthcare more affordable for residents (Connecticut; February 5; Health Payer Specialist, February 13; Becker’s Payer Issues, February 13).
Indiana State Legislators and Long-Term Care Providers Debate Bill On System Restructuring
House Bill 1277, which was sponsored by Rep. Brad Barrett (R-Richmond), calls for structural changes to the state’s Pathways for Aging program, which currently provides long-term services and supports for eligible older adults and disabled adults. Indiana has seen ongoing issues related to delays in provider payments and growing waitlist for services since the program’s 2024 launch. The program, which shifted enrollees to a managed care model from fee-for-service (FFS), intended to reduce Medicaid spending and improve care coordination. On February 12, the Senate Appropriations Committee heard from long-term care providers that spoke on their frustrations that the managed care program is exacerbating billing issues and increasing costs. However, many legislators are against a restructuring, citing that the system needs more time to be effective. If HB 1277 is passed and signed into law, Indiana would create a separate assisted living waiver to provide enrollees the option to be in managed care or FFS and require long-term nursing home residents to be under FFS. The committee did not vote to advance the bill on February 12, but the Chairman indicated that any amendments or advancement to the floor might happen this week. HB 1277 must pass a full Senate vote by February 19, before the short session concludes at the end of the month (Indiana Capital Chronical, February 13).
SPAs and Waivers
SPAs
- Services
- Alabama (AL-25-0015, effective October 1, 2025): In alignment with Section 1905(a)(29) of the Social Security Act, makes coverage of Medication Assisted Treatment (MAT) for opioid use disorders (OUD) permanent by removing the sunset date.
- Alaska (AK-25-0010, effective October 1, 2025): In alignment with Section 1905(a)(29) of the Social Security Act, makes coverage of Medication Assisted Treatment (MAT) permanent by removing the sunset date, and aligns language with ABP and state language.
- Delaware (DE-25-0001-A, effective March 2, 2025): Adds coverage for eligible juveniles who are inmates of a public institution following adjudication of charges.
- Kentucky (KY-24-0020, effective October 1, 2024): Continues coverage of over-the-counter COVID-19 at home test kits.
- Oregon (OR-26-0002, effective January 1, 2026): Expands the Family Connects Oregon nurse home visiting targeted case management (TCM) program into Multnomah County.
- Mississippi (MS-25-0002, effective October 1, 2025): Allows the Division of Medicaid (DOM) to incorporate automatic enrollment to MCOs, with exclusions for tribal members. Additionally excludes 1915(i) Community Support Program services beneficiaries from the Mississippi Coordinated Access Network (MSCAN).
- Montana (MT-24-0020, effective July 1, 2024): Aligns Alternative Plan Benefit (ABP) templates with state plan language.
- Wisconsin (WI-25-0025, effective October 1, 2025): In alignment with Section 1905(a)(29) of the Social Security Act, makes coverage of Medication Assisted Treatment (MAT) permanent by removing the sunset date, and aligns provider credentials with federal and state requirements.
- Payment
- Texas (TX-25-0025, effective September 1, 2025): Updates payment methodology of personal attendants providing primary home care by increasing the average hourly wage to $13.00. Also discontinues the attendant compensation rate enhancement program.