In this update:
- Administration Updates
- Trump Administration Rescinds Biden Covid-Era EO
- President Trump Fires Democratic Appointees to FTC
- Federal Agencies
- HHS Reportedly Begins Significant Reorganization
- HHS Removes Public Health Advisory on Gun Violence
- Trump Administration Files for Summary Judgement in 340B Cases
- Other Updates
- MACPAC Releases March 2025 Report
- MedPAC Releases March 2025 Report
- Real Time Medical Systems Wins Information Blocking Suit
- New York State Updates
- NYS to Increase Reimbursement for Physical and Behavioral Health eConsults
Administration Update
Trump Administration Rescinds Biden Covid-Era EO
On March 14th, President Trump rescinded President Biden’s Executive Order (EO) 13394 (which was titled “Ensuring a Data-Driven Response to COVID-19 and Future High-Consequence Public Health Threats”). The EO, established on Biden’s second day in office, directed the Department of Health and Human Services (HHS) to spearhead pandemic-related data issues including analyzing interoperability of public health data systems, as well as to deter the spread of misinformation. The EO noted that it was the policy of the Biden Administration to “respond to the Covid-19 pandemic through effective approaches guided by the best available science and data, including by building back a better public health infrastructure.”
The EO recission was issued among a larger group titled “Additional Recissions of Harmful Executive Orders and Actions.” Since assuming the White House, President Trump has taken a number of actions to dismantle Biden-era Covid-19 infrastructure, including firing an inspector general tasked with Covid-19 relief effort oversight and terminating an advisory committee on long Covid.
The rescission announcement is available here.
President Trump Fires Democratic Appointees to FTC
On March 18th, the two remaining Democratic appointees to the Federal Trade Commission (FTC), Alvaro Bedoya and Rebecca Kelly Slaughter, announced their removal from the Commission, a traditionally independent agency. The firings, confirmed by the White House, will face legal scrutiny and action, as the FTC joins a growing list of agencies stripped of Democratic commissioners, including the Privacy and Civil Liberties Oversight Board, the Equal Employment Opportunity Commission, the Federal Election Commission, and the National Labor Relations Board. FTC Commissioner Andrew Ferguson endorsed the firings in a statement, saying “I have no doubts about his [Trump’s] constitutional authority to remove commissioners.” Bedoya and Slaughter plan to sue the Administration over their firings.
Bedoya posted a statement on X here.
Federal Agencies
HHS Reportedly Begins Significant Reorganization
On March 13th, Politico reported an imminent reorganization at the Department of Health and Human Services (HHS), including a dramatic drop in workforce. Since President Trump assumed office, HHS agencies have been directed to submit budgetary plans with contingent workforce reductions. According to those briefed, cuts are expected department-wide, but the Office of the National Coordinator for Health Information Technology, the Agency for Healthcare Research and Quality, the Health Resources and Services Administration, and the Administration for Children and Families are noted as targets. Roles that center on electronic health record (EHR) certification and AI policy are particularly vulnerable as the Trump Administration moves to unwind this work.
The Politico report is available here.
HHS Removes Public Health Advisory on Gun Violence
On March 18th, the Department of Health and Human Services (HHS) confirmed the removal of former Surgeon General Vivek Murthy’s advisory naming gun violence a public health crisis. The advisory was issued last June in response to a surge of firearm-related injuries and deaths. Firearms have been the leading cause of death for children and teens since 2020. An HHS spokesperson defended the move, explaining that “HHS and the Office of the Surgeon General are complying with President Trump’s Executive Order on Protecting Second Amendment Rights.” This Order directs the federal government to halt any policies or programs deemed to be in conflict with the constitutional right to bear arms.
Trump Administration Files for Summary Judgement in 340B Cases
On March 17th, the Department of Health and Human Services (HHS) filed for summary judgement in its favor in lawsuits over a planned 340B rebate model piloted by pharmaceutical manufacturers, aligning itself with the Biden Administration’s position. The model in question would have replaced long-standing upfront drug discounts with after-the-fact rebates in an effort to cut alleged misuse of the program. After immediate pushback from the Biden Administration, manufacturers abandoned the model but began filing lawsuits against HHS. In its filing, the Trump Administration noted that the program would “upend the way the 340B program has operated for more than thirty years,” supporting the Biden Administration’s pushback against the program as “lawful.”
Other Updates
MACPAC Releases March 2025 Report
On March 15th, the Medicaid and Children’s Health Insurance Program Payment Advisory Commission (MACPAC) released its annual March 2025 Report to Congress. The report consists of three chapters: 1) improving external quality review (EQR) processes for managed care plans; 2) improving access to home- and community-based services (HCBS) through provisional plans of care; and 3) streamlining waiver authorities for HCBS. The Commission offers three recommendations for EQR oversight and accountability, including further data points in annual technical reports, updated protocols to minimize duplication, and more transparent access to the reports.
The report is available here, and the announcement is available here.
MedPAC Releases March 2025 Report
On March 13th, the Medicare Payment Advisory Commission (MedPAC) released its annual March 2025 Report to Congress. The report covers the Medicare fee-for-service (FFS) payment system, Medicare Advantage (MA), Part D plans, and overall payment adequacy across a range of specialties. For hospitals, the Commission recommended the 2025 Medicare base payment rates for general acute care hospitals be updated by the amount specified in current law plus 1 percent in 2026. For physicians, the Commission recommended Congress replace the current-law updates with a single update equal to the projected increase in the Medicare Economic Index minus 1 percentage point, while also establishing safety-net add-on payments under the physician fee schedule in 2026. The Commission also made recommendations on access to outpatient dialysis services, skilled nursing facilities (SNFs), home health care services, and inpatient psychiatric facilities. The report also included status reports for the MA and Part D Programs.
The report is available here, and the announcement is available here.
Real Time Medical Systems Wins Information Blocking Suit
On March 12th, a federal appeals court ruled in favor of analytics firm Real Time Medical Systems in a suit over their access to electronic health records (EHR) held by PointClickCare (PCC). Real Time Medical Systems sought access to EHR data spanning thousands of long-term and post-acute care providers and hospitals, as part of its analytics services offered to skilled nursing facilities. PointClickCare denied such access based on its security protocols – since Real Time uses automated users (“bots”) to access the records – noting that the security practice protects patient data and performance integrity of its systems.
As a result, Real Time filed a lawsuit against PointClickCare, alleging that information blocking practices interfered with their business operations, harmed patients, and enabled unfair competition. The Fourth Circuit Court of Appeals agreed with Real Time, noting that PointClickCare “failed to articulate a specific security risk posed by Real Time’s bot access, instead gesturing very broadly to the potential malicious use of bots.” The case opens the door for companies to sue directly for information blocking violations rather than relying on the government to intervene via regulation and oversight.
The decision is available here.
New York State Update
NYS to Increase Reimbursement for Physical and Behavioral Health eConsults
Effective June 1st, the New York State (NYS) Medicaid program will enhance reimbursement rates for a period of five years for eConsultations (“eConsults”) between eligible physical health and behavioral health practitioners. The State intends for this enhancement to support comprehensive evaluation of treatment options that address both the mental health needs and medical complexities of patients. For example, a primary care physician may seek a consultation with a psychiatrist to determine the most appropriate antidepressant medication for a patient.
During the first two years of the enhanced reimbursement period, eligible eConsults will be reimbursed at 200 percent of the established rate, with both participating providers receiving the enhanced rate. After this two-year period, reimbursement will drop to 150 percent and then to 125 percent of the established rate for the remainder of the five-year period.
The following practitioners may engage in eConsults: physicians (including psychiatrists), physician assistants, nurse practitioners (NPs) (including psychiatric NPs), and midwives. Article 16, Article 28, Article 31, or Article 32 Hospital Outpatient Departments or freestanding Diagnostic and Treatment Centers, and Federally Qualified Health Centers (FQHCs) that have opted into the Ambulatory Patient Group (APG) reimbursement methodology may submit an APG claim to NYS Medicaid for eConsult services, provided that either the treating/requesting provider and/or the consulting provider is an eligible practitioner employed by the clinic.
Additional information is available in the Medicaid update here.