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American Focus > Blog > Health and Wellness > A surprise opening for health care reforms
Health and Wellness

A surprise opening for health care reforms

Last updated: March 26, 2026 8:26 am
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A surprise opening for health care reforms
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Contents
How the ICE debate might lead to health reformsCDC all-hands meetingInsulin: A symbol of high drug costsFTC suggests settlement on insulin pricingMalone steps downCMS launches new payment pilotWhat we’re reading

This is the web edition of D.C. Diagnosis, STAT’s newsletter on health politics and policy, sent out every Tuesday and Thursday. Subscribe here for updates.

Before becoming a football tight end for the KC Chiefs, Travis Kelce conducted surveys for Obamacare. Share news tips and anecdotes about the unusual past jobs of famous individuals by contacting [email protected] or John_Wilkerson.07 on Signal.

How the ICE debate might lead to health reforms

Republicans are contemplating using the budget reconciliation process to fund the Immigration and Customs Enforcement agency independently of Democrats. This approach might allow them to pass legislation like President Trump’s Great Healthcare Plan without Democratic support.

The plan proposes moving away from the Affordable Care Act’s insurance model to emphasize individual health savings accounts. It also seeks to legally establish agreements with drug manufacturers to align U.S. prices with those of other countries and prevent pharmacy benefit managers from compensating large consulting firms that assist employers with benefit choices.

According to Natasha Murphy from the Center for American Progress, health savings accounts are more likely to be targeted through reconciliation than drug pricing, although the administration is advocating for the latter.

Initially, it seemed improbable for Republicans to use reconciliation for legislative goals. However, some now view it as a necessary strategy to bypass Democrats, who are pushing for ICE reforms opposed by Republicans after the Minneapolis protestor deaths.

See also  How Trump Could Weaken the Affordable Care Act

The parties are considering funding the Department of Homeland Security, excluding ICE’s deportation operations, separately. Then, Republicans might use reconciliation to fund ICE and potentially address the Iran conflict.

Republicans’ future attempts at reconciliation remain uncertain. They previously used it to pass tax legislation without Democratic backing, but with a slim House majority and existing tax cuts, achieving this again would be challenging.

“The only thing that unified us last year was the need for tax reductions,” stated Sen. Rick Scott (R-Fla.).

Health care policy has previously intersected with ICE debates. Earlier, HHS funding was entangled in ICE funding disputes. The impasse was resolved by separating DHS funding from other agencies, a strategy being reconsidered.

CDC all-hands meeting

On the day a permanent CDC director was anticipated to be named by Trump, acting Director Jay Bhattacharya convened his first all-hands meeting with agency staff, as reported by Helen Branswell.

Many attendees expected Bhattacharya to announce the new CDC director at the meeting. However, he indicated that the announcement would come later that day. (HHS later confirmed Bhattacharya would remain in a part-time leadership capacity at the agency, without specifying a timeline for the new appointment.)

Helen obtained a transcript of the meeting. Learn about the challenging questions Bhattacharya faced, his defense of health secretary Robert F. Kennedy Jr., and his plans following the attack on the CDC headquarters in Atlanta.

Insulin: A symbol of high drug costs

A bipartisan group of lawmakers has put forward legislation to cap out-of-pocket insulin expenses at $35 monthly for privately insured individuals and reduce costs for some uninsured people through a $100 million pilot program, according to Daniel Payne.

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This builds on a previous measure to cap insulin prices for Medicare patients, which was included in the Democrats’ Inflation Reduction Act.

The INSULIN Act of 2026, supported by Sens. Raphael Warnock (D-Ga.), Jeanne Shaheen (D-N.H.), John Kennedy (R-La.), and Susan Collins (R-Maine), intends to establish new rules for pharmacy benefit managers and boost competition from biosimilars and generics. Semafor first reported this effort.

In 2023, a similar bill was introduced but not enacted.

Insulin, though updated over time, has long represented high drug prices, being widely used despite its core ingredient being discovered about a century ago.

FTC suggests settlement on insulin pricing

In relation to the previous point, the Federal Trade Commission has proposed a settlement with CVS Caremark over claims that it artificially raised insulin prices, as reported by Ed Silverman.

Last month, the FTC finalized a settlement with Cigna’s Express Scripts on similar charges. These cases result from a September 2024 complaint against CVS Caremark, Express Scripts, and UnitedHealth’s OptumRx.

Read more.

Malone steps down

Robert Malone, a vocal doctor allied with RFK Jr., is withdrawing from a federal vaccine advisory panel, Chelsea Cirruzzo reports.

Malone was among the new members appointed to the Advisory Committee on Immunization Practices after Kennedy dismissed all previous members.

A federal judge recently issued a preliminary ruling stating that the reconstitution of ACIP and the changes to the childhood vaccine schedule made in January were likely illegal due to the manner in which they were implemented.

CMS launches new payment pilot

The CMS introduced a pilot program aimed at enhancing care for children with complex medical and behavioral needs by promoting cooperation and accountability among healthcare providers.

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CMS Administrator Mehmet Oz and Abe Sutton, director of the Center for Medicare and Medicaid Innovation, detailed the new initiative in a STAT First Opinion article. The program, known as ASPIRE (Accelerating State Pediatric Innovation Readiness and Effectiveness), aims to establish a more comprehensive value-based payment system, providing pediatric providers with an entry point to greater accountability and more significant rewards for quality care.

What we’re reading

  • California mulls a seal of approval for non-ultra-processed foods, STAT
  • ‘We’re on the inside now’: Meet the man building a political empire behind RFK Jr., The Boston Globe
  • The rise of an outsider in Eli Lilly’s top ranks and how they plan to advance the business, STAT
  • The meme-washing of RFK Jr., The Atlantic

 

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