AHA Sends Letter to HHS on AI Considerations in Healthcare

On February 23, the American Hospital Association (AHA) sent a letter to the Department of Health and Human Services (HHS) requesting that federal officials reduce regulations and allow clinician oversight of artificial intelligence (AI) within healthcare. Though supportive of AI in clinical care, AHA requests that HHS consider several guardrails as usage expands. This includes integrating new AI policies within existing regulations, implementing stronger federal privacy requirements, and promoting transparency of AI prior authorization algorithms. Additionally, AHA noted that AI implementation and operation are costly and time-intensive and are not accounted for in Medicare payment rates. The association warned against prioritizing AI over medical services. Finally, the letter encouraged HHS to extend privacy and security standards to third-party vendors and establish “risk-based post-deployment monitoring standards” for devices that use AI (Becker’s Health IT, February 23).

HHS Launches Health IT Challenge

On February 17, the HHS’ Assistant Secretary for Technology Policy (ASTP) launched the EHIgnite Challenge, in which participating health IT developers are tasked with creating tools, workflows, or platforms with the capability to transform raw electronic health information (EHI) into readable and actionable data that can be used by clinicians to make informed decisions for their patients. The agency will hold an informational webinar on March 11 at 2:00 pm (ET). Winners of the challenge will award the first phase winners with $10,000 and second phase finalists with $250,000, $100,000, and $30,000, respectively, with an additional award of $20,000 for the Most Innovative Use of AI. Those interested in participating must enter by May 13, 2026 (Beckers Hospital Review, February 24).

Stakeholders Urge Changes to 2027 MA Rates

CMS’ January 26 advance notice for the 2027 Medicare Advantage (MA) rate sets a 0.9% average payment increase (about 2.54% after coding adjustments), below the 4%-6% increase many insurers had anticipated. In response, the Better Medicare Alliance is circulating a sign-on letter to CMS Administrator Mehmet Oz requesting that the agency consider a higher final rate and take a measured approach to future policy changes in consultation with stakeholders. The proposal also includes updates to the MA risk adjustment model, including the exclusion of certain chart-review diagnoses not linked to patient encounters. Policy analysts describe the notice as reflecting broader federal fiscal considerations and oversight priorities. Insurers and ratings analysts have noted potential implications for premiums, benefits, and plan participation depending on the final rate. Comments on the advance notice are due February 25, and CMS is expected to issue the final rule by April 6 (Inside Health Policy, February 20).

HHS Delays ACIP Session Scheduled to Address Vaccine Program Updates

Health and Human Services (HHS) has postponed the February 25–27 meeting of the Advisory Committee on Immunization Practices (ACIP) after failing to publish the required Federal Register notice and amid a Massachusetts court case challenging HHS Secretary Robert F. Kennedy Jr.’s recent appointments to the panel. The meeting was expected to include discussion of whether to align the Vaccines for Children (VFC) Program with CDC’s January revisions to the vaccine schedule, including vaccines moved to “shared clinical decision-making” recommendations. Pediatric organizations have raised concerns that removing such vaccines from VFC could lead to differences in access between privately insured and VFC-eligible children. The delay also comes amid scrutiny of FDA’s handling of Moderna’s investigational mRNA influenza vaccine and ongoing leadership transitions at CDC (Inside Health Policy, February 19).

Second CDC Official Steps Down

On February 23, the CDC announced that Ralph Abraham, who began as the agency’s Principal Deputy Director in January, stepped down from his position citing unforeseen family obligations. The announcement comes soon after former NIH director Jay Bhattacharya was temporarily appointed to lead the CDC. Abraham, who was formerly the Surgeon General of Louisiana, has previously expressed anti-vaccination sentiments. This move comes as recent White House statements may signal a shift in HHS focus away from vaccines and toward food safety and pharmaceutical price reductions (Inside Health Policy, February 23).

Hospital Price Transparency Data Underutilized by Patients

According to KFF Health News, price transparency efforts from the federal government in recent years have not achieved their intended consumer impact. The first and second Trump administrations have pushed price transparency requirements for hospitals with the goal of allowing consumers to shop for more affordable healthcare. However, research has shown that hospitals have been slow to comply with the transparency rules. Moreover, other researchers did not find evidence that patients are using the price transparency data to make healthcare decisions. Despite efforts by both President Trump and President Biden, the data that is published is often sparse, inconsistent, or difficult for consumers to interpret or compare. Rather, the public data is utilized by the industry itself. Insurers have found the data to be a useful tool in identifying rate discrepancies and strengthening contract negotiation positions (Fierce Healthcare, February 18; KFF Health News, February 17).