House Moves Closer to Passing Reconciliation Package. Key House committees worked through the night this week to pass their reconciliation language. The Energy and Commerce committee bill includes policies that will cut $715 billion in federal spending, primarily from the Medicaid program, by implementing work requirements, conducting more frequent eligibility checks, and other measures. The Energy and Commerce bill also includes a Medicare physician fee schedule payment provision providing a partial Medicare Economic Index update and eliminating the split conversion factor that was set to begin in 2026. As a reminder, the split conversion factor provided an incentive to participate in advanced Alternative Payment Models in the form of a higher update for advanced APM participants. This legislation removes that incentive and does not extend any form of advanced APM incentive. The impact of this provision would be to shift physician fee schedule resources from APM participating clinicians to non-APM participating clinicians. A4H released an issue brief expressing opposition to this provision and encourages A4H members to continue contacting Congressional offices to urge inclusion of an APM incentive. The full reconciliation package could be voted on by the House next week and then sent to the Senate, where further changes to the bill are expected. A4H will continue to weigh in with House and Senate offices to urge inclusion of incentives for accountable care this year.

HHS Secretary Kennedy Testifies on Budget Request. Health and Human Services Secretary Robert F. Kennedy, Jr., testified before the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies and the Senate Committee on Health, Education, Labor, and Pensions (HELP). Some exchanges between Sec. Kennedy and the lawmakers were tense, with lawmakers on both sides of the aisle questioning how reductions in force (RIFs) and funding cuts have impacted important programs and research. There were also moments of consensus, including agreement between the Secretary and lawmakers from both parties about lowering the cost of drugs and addressing direct-to-consumer drug advertising. Other topics of discussion included the HHS reorganization plan, vaccinations, nutrition, and management of chronic diseases. Value-based care was not discussed. A4H looks forward to reviewing the full Fiscal Year (FY) 2026 President’s Budget Request and will continue engaging with HHS to advance programs and initiatives important to value-based care.

New CMMI Strategy Centers on Producing Cost Savings and Improving Care Quality. CMMI released a white paper on the agency’s new strategic direction. CMMI will focus on three interrelated pillars: promoting evidence-based prevention, empowering people to achieve their health goals, and driving choice and competition in the market. A4H welcomes CMMI’s continued commitment to accountable care, detailed in the white paper’s focus on preventive care, continued testing and scaling of global risk and total cost of care models, and driving increased independent provider participation in accountable care. A4H is pleased that the strategy recommits to two-sided risk models and incorporates feedback from our members about the importance of stability and predictability in model implementation. We expect to see more detailed, model-specific information later this summer.

CMS Asks for Input on Empowering Medicare Beneficiaries Through Technology. CMS released a request for information (RFI) on advancing patient-centered digital infrastructure. Patients, caregivers, providers, payers, tech developers, and other stakeholders are invited to provide input to CMS on a range of technology and digital health goals, including reducing administrative burden and accelerating progress towards value-based, patient-centered care. Other areas CMS seeks feedback on include digital health management and care navigation tools, sharing health data across systems, and strengthening interoperability and secure access to data using standards-based technologies. Comments will be accepted until June 16, and CMS is hosting a Q&A session on the RFI on Tuesday, May 20, at 1:00 PM EST. Stakeholders are invited to attend and share their insight with the CMS Office of the Administrator team. 

Medicare Shared Savings Program ACOs Weigh in with Administration on Benchmarking Concerns. The letter, signed by 120 ACOs, urges CMS to address the Accountable Care Prospective Trend (ACPT) and to work with ACOs to improve MSSP benchmarking in the future. The letter explains two key issues with ACPT: the late timing of the adjustment essentially made it retrospective, and it significantly underestimated Medicare cost growth

Register for a Congressional Hill Briefing on Complex Populations on Wednesday, June 4. Join the Complex Care Alliance for a discussion with experts in health care, policy, and patient advocacy for a briefing on Improving Care for Patients with Serious Chronic Conditions. The meeting will take place at the Rayburn Office Building, Room 2045 from 12pm to 1pm. Register here.