WASHINGTON, D.C. — The Trump administration’s Centers for Medicare & Medicaid Services this past Monday launched a rapid-fire slate of policy moves spanning drug price negotiations, Medicare Advantage payments, organ procurement oversight, and a push to rebuild domestic supply chains for critical medical products, while also touting billions in taxpayer savings tied to crackdowns on marketplace enrollment abuse and Medicaid financing tactics.
In one of the broadest actions, CMS issued an advance notice of proposed rulemaking seeking public feedback on approaches to strengthen “American-made” supply chains for personal protective equipment and essential medicines, including the potential creation of a “Secure American Medical Supplies” designation for Medicare-participating hospitals that commit to domestic purchasing and new payment approaches meant to help offset procurement costs. Dr. Mehmet Oz said the COVID-19 era “exposed the dangers of depending on foreign countries for critical PPE and essential medicines,” and framed the proposal as part of the administration’s preparedness and manufacturing agenda. Comments are due within a 60-day period through the Federal Register docket at https://www.federalregister.gov/d/2026-01730.
CMS also released its Calendar Year 2027 Advance Notice of Methodological Changes for Medicare Advantage capitation rates and Part C and Part D payment policies, projecting a net average year-over-year payment increase of 0.09 percent, or more than $700 million, if the proposed policies are finalized. When CMS’ estimated risk score trend driven by coding practices and population changes is included, the expected average change in payments rises to 2.54 percent, the agency said. CMS set a public comment deadline of 11:59 p.m. Eastern Time on February 25, 2026, and said the final rate announcement will be published on or before April 6, 2026. The Advance Notice is posted at https://www.cms.gov/files/document/2027-advance-notice.pdf, and a related fact sheet is available at https://cms.gov/newsroom/fact-sheets/2027-medicare-advantage-part-d-advance-notice.
On Tuesday, CMS named 15 high-cost prescription drugs for the third cycle of the Medicare Drug Price Negotiation Program, marking the first time the agency selected drugs payable under Medicare Part B alongside Part D products, and also selected one previously negotiated drug for the program’s first renegotiations. Negotiations with participating manufacturers will occur in 2026, with negotiated and renegotiated prices set to take effect January 1, 2028. The 15 drugs selected were Anoro Ellipta; Biktarvy; Botox and Botox Cosmetic; Cimzia; Cosentyx; Entyvio; Erleada; Kisqali; Lenvima; Orencia; Rexulti; Trulicity; Verzenio; Xeljanz and Xeljanz XR; and Xolair. The selected drug for renegotiation was Tradjenta. CMS said the selected drugs accounted for about $27 billion in combined Medicare Part B and Part D spending and were used by roughly 1.8 million beneficiaries between November 2024 and October 2025. Fact sheets are posted at https://www.cms.gov/files/document/factsheet-medicare-negotiation-selected-drug-list-ipay-2028.pdf and https://www.cms.gov/files/document/factsheet-medicare-top-50-negotiation-eligible-drug-list-ipay-2028.pdf, with additional program information at https://www.cms.gov/priorities/medicare-prescription-drug-affordability/overview/medicare-drug-price-negotiation-program.
On Wednesday, CMS issued a proposed rule to tighten federal oversight of organ procurement organizations, with the agency citing more than 100,000 Americans waiting for a life-saving transplant, a new person added to the list about every eight minutes, and 17 deaths each day while patients wait. Robert F. Kennedy, Jr. said the proposal would strengthen accountability and safety expectations, while Oz said CMS is seeking stronger tools to remove underperforming organizations and reduce missed opportunities for donation. The proposal would refine performance measures, define and deter unsafe practices, and expand expectations for handling medically complex organs, CMS said. The rule is open for comment for 60 days after publication in the Federal Register, with a public inspection link provided at federalregister.gov/public-inspection/2026-01833/medicare-and-medicaid-programs-organ-procurement-organizations-conditions-for-coverage-revisions-to, and a fact sheet at https://www.cms.gov/newsroom/fact-sheets/organ-procurement-organizations-opos-conditions-coverage-revisions-cms-3409-p-proposed-rule.
The agency also highlighted a yearlong enforcement and systems push aimed at stopping unauthorized Affordable Care Act marketplace enrollments and plan switches, saying it ended premium subsidies for nearly 1.5 million people deemed ineligible for financial assistance or enrolled without authorization on the federally facilitated exchange platform and canceled unwanted coverage for an additional quarter million enrollees. CMS said those steps amount to nearly $10 billion in annualized savings, and it cited faster complaint resolution timelines for consumers who report unauthorized activity. Consumers who believe they were enrolled or switched without consent were directed to the Marketplace Call Center at 1-800-318-2596, and CMS also pointed to reporting channels through the HHS Office of Inspector General.
In separate marketplace enrollment data released Wednesday, CMS said 23.0 million consumers signed up for 2026 individual market coverage through the marketplaces since the open enrollment period began November 1, 2025, including 15.8 million plan selections in HealthCare.gov states and 7.2 million plan selections in state-based exchanges, including the District of Columbia. CMS said 3.4 million were new consumers, while 19.6 million were returning enrollees who actively selected plans or were automatically re-enrolled.
CMS additionally promoted a push tied to Medicaid community engagement requirements enacted under Donald Trump’s Working Families Tax Cut legislation, saying 10 health technology companies with existing state Medicaid eligibility and enrollment contracts pledged more than $600 million in no-cost and discounted products and services to support state implementation by January 1, 2027. The participating companies listed by CMS included Accenture, Acentra Health, Conduent, GDIT, Deloitte, Gainwell, Maximus, Curam by Merative, Optum, and RedMane, with an expanded vendor list and pricing details included in the agency’s release. CMS pointed readers to cms.gov/newsroom/fact-sheets/fact-sheet-pledges-medicaid-technology-companies-support-community-engagement-implementation-related and medicaid.gov/medicaidreforms.
Rounding out the week’s actions, CMS said it finalized a rule aimed at closing what it called a Medicaid “health care-related tax loophole,” describing it as a financing tactic used by some states to shift a larger share of Medicaid costs to federal taxpayers. CMS estimated the targeted arrangements generate $24 billion annually for states and said closing the loophole will save the federal government more than $78 billion over 10 years. CMS said transition periods vary by tax type and timing of prior approvals, with some arrangements allowed through the end of calendar year 2026 and others extending into state fiscal years 2027 or 2028. The final rule was posted via the Federal Register at https://www.federalregister.gov/d/2026-02040.
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