Thursday report

David Ermer–CDC, CMS, Congress, Medical / Rx research, Medicare, OPM, U.S. Healthcare–

From Washington, DC

  • Govexec reports,
    • “President Trump on Thursday said he plans to sign an executive order to pay all Homeland Security Department workers, after the House failed again to pass legislation ending the partial government shutdown, now in its 48th day.” * * *
    • “TSA workers were granted four weeks’ worth of back pay Monday following the signing of the more targeted edict last week, while ICE and CBP workers have been paid on time since the beginning of the department-wide appropriations lapse using funds from the One Big Beautiful Bill law. Still working without pay within the department are employees at the Federal Emergency Management Agency along with support staff and other non-immigration-related DHS components. 
    • “Observers had anticipated Thursday to serve as the potential end of the six-week impasse. After the House rejected a Senate-passed bill to fund DHS—minus ICE and CBP—through the end of September last week, senators again passed the bill with the expectation that the House would approve it via unanimous consent that morning. But when the House convened its pro forma session, lawmakers did not bring the measure up for consideration, reportedly due to pressure from conservative GOP members.
    • “The next possible opportunity for Speaker Mike Johnson to advance the DHS legislation would be Monday. The House is not set to return to Washington until April 14.”
  • Roll Call relates,
    • “President Donald Trump ousted Pamela Bondi as attorney general Thursday, closing out a tumultuous tenure punctuated by rolling controversies and attacks against the Justice Department’s traditional independence from the White House.
    • “Trump, who made the announcement in a social media post, said his former personal attorney, Deputy Attorney General Todd Blanche, would lead the department as acting attorney general. The president described Bondi as a “loyal friend.”
    • “Bondi, in a statement on social media, said that over the next month she would be working to transition the office of attorney general to Blanche “before moving to an important private sector role.”
    • “She said she would continue “fighting for President Trump and this Administration” in the new role.”
  • The Wall Street Journal tells us,
    • “The U.S. will impose tariffs of as much as 100% on branded pharmaceuticals, the White House said Thursday, though nations or drugmakers that strike deals with the Trump administration or commit to build manufacturing facilities in the U.S. can receive lower levies. 
    • “The 100% tariff will apply to patented imported pharmaceuticals from companies that haven’t committed to invest in the U.S. and haven’t entered into “most favored nation” agreements to match their U.S. prices to the lowest they charge in other developed countries, a senior administration official said Thursday.
    • “But the full 100% tariff might apply to only a few drugmakers or none at all. If a company pledges to invest in U.S. drug manufacturing in the coming years, its tariff rate will fall to 20%, the senior administration official said. The company would have to complete the factory by the end of President Trump’s term in the White House, the official said, or tariffs could be increased.
    • “Additionally, if a company that has made a U.S. manufacturing pledge also strikes a most-favored-nation agreement with the Trump administration, its tariffs can fall to zero, the official said.”
  • Lotsa Medicare news today. Bloomberg Law reports,
    • “The Trump administration announced changes to patient cost-sharing in Medicare’s prescription drug benefit and will update the methodology used to rate private Medicare Advantage plans.
    • “The final rule (RIN 0938-AV63), released Thursday by the Centers for Medicare & Medicaid Services, implements changes to Part D enacted under the Inflation Reduction Act in 2022 and will update the methodology used to calculate insurers’ “star ratings,” which are quality scores that determine bonuses and marketing privileges. The changes would take effect in 2027.
    • “The new rule finalizes the Inflation Reduction Act’s elimination of Medicare Part D’s coverage gap as part of a broader overhaul of how the program is financed. The law’s $2,000 annual out-of-pocket cap for prescription drugs took effect last year.
    • “The agency chose to hold off on finalizing a previous proposal that would have allowed Medicare Advantage members a special enrollment period when their doctor leaves their network.”
  • and
    • “The Trump administration proposed new transparency measures for hospices under Medicare amid a focus on fraud led by Centers for Medicare & Medicaid Services Administrator Mehmet Oz.
    • “The proposed rule (RIN 0938-AV78), released Thursday by the CMS, also includes updates to the hospice wage index, which adjusts daily Medicare hospice payments based on differences in labor costs across geographic regions. 
    • “The measure proposes a new analysis of non-hospice spending in an effort to better identify fraud and overutilization, as well as to require hospices to list for patients what services are not covered under Medicare’s hospice benefit.
    • “Hospices exist to help Americans die peaceful, dignified deaths, not to line the pockets of fraudsters,” Oz said in a statement. “These new transparency measures will make it easier for CMS and others to identify hospice providers that misuse Medicare dollars, cut off their funding, and refer them to law enforcement for criminal prosecution.”
    • “The proposal would also increase payment rates in fiscal year 2027 by 2.4%, or $785 million, and seeks comment on developing a hospice-specific wage index.”
  • The American Hospital Association News informs us,
    • The Centers for Medicare & Medicaid Services April 2 issued a proposed rule for the skilled nursing facility prospective payment system for fiscal year 2027. The proposal would increase aggregate payments by 2.4%, which reflects a 3.2% market basket update and a 0.8 percentage point cut for productivity. CMS also included in this proposed rule a request for information on how to address perceived case-mix upcoding. For the SNF Quality Reporting Program, CMS proposes to remove two measures focused on COVID-19 vaccination for patients and health care personnel. CMS also proposes to shorten the timeframe for data submission at the end of each quarter from 4.5 months to 45 days beginning with FY 2029. CMS suggests this change would reduce the lag in public reporting and give SNFs access to more timely data for quality initiatives. CMS will accept public comments on the proposed rule through June 1, 2026. 
  • and
    • The Centers for Medicare & Medicaid Services April 1 released the fiscal year 2027 prospective payment system proposed rule for inpatient rehabilitation facilities. The rule would increase payments by 2.8% overall, which includes a 3.2% market basket update, reduced by a 0.8 percentage point productivity adjustment. CMS is also proposing a slight decrease in the outlier threshold, which would increase payments by 0.4 percentage points. Further, CMS proposes changes and clarifications to the IRF coverage rules, including that all therapies must be initiated within 36 hours of admission to the IRF, current functional status be documented at admission, and the initial interdisciplinary team meeting occur on or before the fourth day of admission. Finally, CMS has also included a request for information on modernizing the IRF PPS, including more closely aligning methodologies with those used for skilled nursing facilities. 
  • and
    • “The Centers for Medicare & Medicaid Services April 2 issued a proposed rule for the inpatient psychiatric facility prospective payment system for fiscal year 2027. CMS proposes to increase IPF payments by a net 2.3%, equivalent to $50 million, in FY 2027. The payment update reflects a proposed market basket update of 3.1% minus a productivity adjustment of 0.8 percentage points. CMS also proposes to update the outlier threshold so that estimated outlier payments remain at 2.0% of total payments. 
    • “For the IPF Quality Reporting Program, CMS proposes to remove two measures focused on alcohol and tobacco use screening and treatment effective with the calendar year 2026 reporting/FY 2028 payment periods. CMS also proposes to implement the standardized IPF Patient Assessment Instrument that is mandated by the Consolidated Appropriations Act of 2023. IPFs would be required to collect IPF-PAI data on all patients age 18 years and older regardless of payer beginning Oct. 1, 2027. CMS will accept public comments on this rule through June 1.”
  • and
    • “The Centers for Medicare & Medicaid Services March 31 released a request for applications for its new accountable care organization model, the Long-term Enhanced ACO Design Model, or LEAD. The model is designed to accommodate a wide range of health care providers, including those who have not previously participated in an ACO and providers who care for specialized patient populations. CMS said ACOs interested in the voluntary, 10-year payment model must apply by May 17. The model will launch Jan. 1, 2027.” 
  • Tammy Flanagan writing in Govexec asks “Traveling soon? What federal health plans actually cover.”
    • “Peak travel season is here, but most federal workers don’t know what happens if they need care abroad. From upfront costs to medical evacuations, here is what your FEHB plan does and doesn’t cover when you are out of the country.”
  • Per an OPM news release,
    • “The US Office of Personnel Management (OPM) today announced a cross-government hiring action to recruit Project Managers for critical roles across federal agencies.
    • “Project management has long been identified as an area where the federal government faces a critical skills gap. OPM is tackling that skills gap with this cross-government hiring action. Selected candidates will lead major initiatives in areas such as artificial intelligence, healthcare, defense, energy, financial technology, and infrastructure, increasing on-time, on-budget delivery through professionalized project management practices. Applicants will be screened for qualifications and must complete project management and writing assessments to determine skills levels.
    • “Like the Tech Force program, OPM will use a shared certificate allowing several agencies to hire qualified candidates from the same pool for one year. The effort supports a goal to hire about 250 professionals in project management and data science roles across government.
    • “Delivering on complex national priorities requires strong project management at every level of government,” OPM Director Scott Kupor said. “This effort helps agencies identify and hire professionals who can drive execution, manage risk, and ensure results for the American people.”
    • “Click here to view the job posting and contact CrossGovHiring@opm.gov for more information.”
  • Per an ARPA-H news release,
    • “New STOMP program will uncover how microplastics build up in the body—and drive new ways to protect people from their potential health impact
    • “The Advanced Research Projects Agency for Health (ARPA-H), an agency within the U.S. Department of Health and Human Services (HHS), today announced STOMP: Systematic Targeting Of MicroPlastics, a nationwide $144 million program to create the definitive toolbox for measuring, researching, and affordably removing microplastics and nanoplastics (MNPs) in the human body. 
    • “Today, HHS is taking decisive action to confront microplastics as a growing threat to human health,” said HHS Secretary Robert F. Kennedy, Jr. “Americans deserve clear answers about how microplastics in their bodies affect their health. Through ARPA-H’s STOMP program, we will measure microplastic exposure, identify sources of risk, and develop targeted solutions to reduce it.”  

From the judicial front,

  • Thompson Reuters reports,
    • “Whittemore v. Cigna Health & Life Ins. Co., 2026 WL 777418 (1st Cir. 2026)
    • “The First Circuit has affirmed the dismissal of a lawsuit challenging a health plan’s exclusion of weight-loss drugs, holding that a participant did not plausibly allege she had a disability simply by stating she had been diagnosed with obesity and prescribed medication to treat it. The participant filed a proposed class action lawsuit against a health insurer, alleging disability discrimination under Affordable Care Act (ACA) Section 1557. The participant asserted that her obesity was a disability and that the insurer discriminated against her by designing and administering health plans that categorically excluded coverage for prescription weight-loss medications. (Section 1557 prohibits discrimination on grounds specified in several federal laws, including Section 504 of the Rehabilitation Act, which bars discrimination based on disability.) The district court dismissed the case, ruling that the participant had not plausibly shown that she was disabled merely as a function of her body mass index, nor that the insurer had ever regarded her as disabled.
    • “The First Circuit affirmed the dismissal, but on different grounds. The court explained that to state a disability discrimination claim, the participant had to show she was disabled as defined by the Americans with Disabilities Act (ADA). The ADA defines disability as a physical or mental impairment that “substantially limits one or more major life activities.” The participant’s complaint alleged that her obesity substantially limited her in major life activities such as walking, standing, and sleeping. The court, however, concluded that these allegations were conclusory “threadbare recitals of the elements of a cause of action.” The court also rejected the participant’s argument that any individual diagnosed with obesity and prescribed medication for it is, by definition, substantially limited in the operation of major bodily functions, reasoning that such general statements about obesity’s potential health impacts do not plausibly support an inference that every person in that category is disabled under the ADA.”

From the public health and medical / Rx research front,

  • The American Hospital Association News reports,
    • “Flu and COVID-19 vaccination rates among all health care workers for the 2024-25 respiratory virus season was 76.3% and 40.2%, respectively, according to a Centers for Disease Control and Prevention report released April 2. Coverage was higher for personnel whose employers offered on-site flu and COVID-19 vaccinations, at 73% and 42.9%. Lower figures were found among personnel with employers that did not offer on-site vaccinations, at 41.4% and 19.8%. The CDC said that increasing vaccination coverage by implementing workplace policies, including offering on-site vaccinations, could increase coverage and reduce flu- and COVID-19-related morbidity among health care providers.” 
  • The University of Minnesota CIDRAP adds,
    • “Respiratory syncytial virus (RSV) vaccination coverage among older US adults remained low through the end of the 2024–25 respiratory virus season, according to a new study published in Vaccine. In 2024, the Advisory Committee on Immunization Practices recommended RSV vaccination for adults aged 60 to 74 years who are at increased risk of severe RSV and for all adults aged ≥ 75 years.
    • “Analyzing data from approximately 64,000 adults surveyed from September 2024 through April 2025, researchers from the Centers for Disease Control and Prevention found that, by the end of the 2024–25 respiratory virus season, 38.3% of adults ages 60 to 74 who were at increased risk of severe RSV and 41.5% of those 75 and older had received an RSV vaccine.”
  • Cardiovascular Business shares “Key clinical takeaways from ACC.26” * * * “in New Orleans highlighted advances that will likely impact patient care for years to come. Key topics included pulmonary embolism (PE), lipid management and noninvasive coronary assessment.”
  • Genetic Engineering and Biotechnology News relates,
    • “The ALS Therapy Development Institute (ALS TDI), LifeArc, and Axol Bioscience launched the Patient induced pluripotent stem cell (iPSC)-based Research to Improve Sporadic ALS Modeling (PRISM) initiative, a collaborative effort to expand access to patient-derived stem cell models.
    • ‘ALS is a heterogeneous disease. While 10-15% of cases are linked to inherited mutations, nearly 85% are sporadic, according to a PRISM ALS official, who adds that much of ALS drug discovery has relied on models representing a limited number of rare genetic subtypes. This mismatch has constrained target discovery, limited therapeutic testing across patient populations, and contributed to the high failure rate of clinical trials, maintains the spokesperson.
    • “This initiative plans to provide a high-quality and accessible source of sporadic ALS/MND models for use in research. PRISM ALS aims to develop, evaluate, and make available a diverse panel of well-characterized, patient-derived induced pluripotent stem cell (iPSC) models that capture both genetic and sporadic forms of ALS.
    • “For researchers and drug developers, those standardized, human-relevant models are expected to allow them to better understand disease mechanisms, identify therapeutic targets, and evaluate treatments across distinct biological subtypes. For people living with ALS, it might lead to the development and testing of therapies in models that more closely mirror their own biology, increasing the likelihood that discoveries will translate into meaningful treatments.”
  • Per Healio,
    • ‘A short walk around the block, a 30-minute bike ride, or an intense 1-hour lifting session at the gym each can benefit patients with breast cancer undergoing chemotherapy.
    • “A meta-analysis of more than 20 clinical trials showed women randomly assigned to exercise interventions, whether aerobic, strength or a combination of both, during treatment had more than a 60% greater likelihood of reporting improved quality of life than those who received standard care alone.”
  • Per Fierce Pharma,
    • “Another green light appears increasingly within reach for AstraZeneca’s Emerald program after a combo regimen featuring the company’s immunotherapy duo, Imfinzi and Imjudo, showed benefit in certain liver cancer patients. 
    • “Results from the phase 3 Emerald-3 trial showed that the combination, paired with transarterial chemoembolizaton (TACE) and Lenvima, significantly improved progression-free survival (PFS) versus TACE alone in patients with unresectable locoregional hepatocellular carcinoma. Lenvima is a multikinase inhibitor sold by Merck & Co. and Eisai.
    • ‘But whether AZ has struck gold with Emerald-3 remains to be seen. Overall survival (OS), a secondary endpoint that will be a key consideration for the FDA, was immature at the interim analysis, although AZ highlighted a trend toward improvement in its April 2 announcement.”

From the U.S. healthcare business and artificial intelligence front,

  • Modern Healthcare reports,
    • “Henry Ford Health is adding to its rapid expansion across Southeast Michigan with the acquisition of Clinton Township-based Cornerstone Medical Group. 
    • “Terms of the deal were not disclosed, but Cornerstone’s 25 locations across the region will be rolled into Henry Ford Medical Group, which employs 3,400 physicians and researchers.
    • “The locations — which include family and internal medicine, pediatrics, endocrinology, hospitalist care, podiatry and colorectal surgery — have been renamed Henry Ford Cornerstone.”
  • Radiology Business point out.
    • nterventional radiology vendor Merit Medical is acquiring a rival imaging-focused firm for $140 million, the two announced Wednesday. 
    • The South Jordan, Utah-based company plans to merge with View Point Medical, which manufactures the OneMark Detection Imaging System. Cleared by the U.S. Food and Drug Administration in 2024, the device uses ultrasound guidance to detect and remove cancer. 
    • Merit Medical—a leading manufacturer of disposable devices such as catheters and guide wires—said it made the move to help expand its portfolio of therapeutic oncology products. 
    • View Point’s ultrasound-based technology is “highly innovative,” it noted, allowing physicians to localize more lesions at the time of biopsy. This represents a market opportunity of 1.3 million procedures annually in the U.S. alone, Merit estimated. 
  • and
    • “The chief executive of America’s largest public hospital system says he is prepared to start replacing radiologists with artificial intelligence in some circumstances, once the regulatory landscape catches up. 
    • ‘Mitchell H. Katz, MD, president and CEO of NYC Health + Hospitals, recently spoke during a panel discussion held by Crain’s New York Business. The trained internal medicine specialist noted how AI is increasingly being used to interpret mammograms and X-rays. 
    • “This presents an opportunity to save on how much hospitals spend on radiologists, who have become more costly amid rising demand for imaging, Crain’s reported Thursday. 
    • “We could replace a great deal of radiologists with AI at this moment, if we are ready to do the regulatory challenge,” Katz said at the forum, held on March 25.” 
  • Healthcare Dive relates,
    • “Community Health Systems has closed the sale of another hospital as the for-profit health system makes progress paying down its debt.
    • “On Wednesday, nonprofit Huntsville Hospital Health System acquired Huntsville, Alabama-based Crestwood Medical Center from CHS for $459 million.
    • “The purchase price is higher than the initial $450 million deal proposed in January, when the two health systems signed a definitive agreement. The final amount was subject to a post-closing working capital adjustment, according to a release, an amount that can fluctuate based on the acquisition target’s assets and liabilities.”
  • Beckers Hospital Review tells us,
    • “Oakland, Calif.-based Kaiser Permanente has broken ground on a new hospital tower at Kaiser Permanente Sunnyside Medical Center in Clackamas, Ore.
    • “The seven-story, 615,000-square-foot tower is slated to open in 2029 and will be Oregon’s first fully electric hospital, according to an April 2 health system news release. The facility is also targeting LEED Gold certification and will become Kaiser Permanente’s 87th LEED-certified building.
    • “Features will include private patient rooms; in-room telemedicine capabilities, advanced robotics and image-guided surgical equipment; expanded emergency department capacity to reduce wait times; and green spaces, walking paths and healing gardens.”
  • and
    • “Farmington, Conn.-based UConn Health has shared plans to integrate Middletown, Conn.-based Solnit Hospital, a children and adolescent psychiatric facility, into a satellite location of its UConn John Dempsey Hospital in Farmington.
    • “This collaboration reflects our shared commitment to delivering exceptional, high-quality, and specialized care for Connecticut’s youth while optimizing resources across agencies,” UConn Health CEO, Andrew Agwunobi, MD, said in an April 2 statement shared with Becker’s. 
    • “Solnit Hospital is a state-administered psychiatric facility for children ages 13 to 17. It offers care to children and adolescents with “severe mental illness and related behavioral and emotional problems who cannot be safely assessed or treated in a less restrictive setting,” according to  the state’s website.” 
  • Fierce Healthcare informs us,
    • “Sunfish, a family-building software platform, is launching what it says is the first AI-powered egg-freezing success program in the fertility space.
    • “The goal of the program is to solve the uncertainty that comes with fertility preservation, from a lack of financial transparency to outcomes that are unknown and not guaranteed. Based on a patient’s biodata, Sunfish’s proprietary algorithm predicts the optimal amount of matured eggs that should be frozen as well as the cost of the cycle. 
    • “Sunfish is really focused on helping people to navigate the full fertility journey,” Angela Rastegar, co-founder and CEO of Sunfish, told Fierce Healthcare in an advanced interview. “Patients shouldn’t have to be an unpaid project manager for their own family planning.” 

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