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TrustWorks On Call Alert
January 21, 2026
 
Welcome to a special, emergency edition of TrustWorks On Call. One of our values is to respect our readers’ inboxes by limiting our correspondence to exactly what you signed up for—one email per week, delivered to you at 4pm ET each Tuesday—but the news does not always wait for our Tuesday publishing schedule. In this case, the House and Senate agreed to an omnibus healthcare package just as we were sending yesterday’s newsletter. To catch you up and try something new, we’re issuing our first-ever TrustWorks On Call Alert:

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Congress releases bipartisan health funding deal.

Yesterday afternoon, January 20, senior lawmakers from the House and Senate announced a bipartisan deal, one of three bills needed to fund the government through 2026, that includes important healthcare provisions. Here are highlights of what the bill does:

  • Prohibits pharmacy benefit managers (PBMs) from linking their payments to drug prices in Medicare; in Medicaid, bans PBMs from spread pricing, charging more to the plan than is paid to the pharmacy; and requires PBMs to pass through 100 percent of rebates to employer-sponsored health plans
  • Requires health systems to create a separate billing number for outpatient departments, a step toward site neutrality
  • Extends the Acute Hospital Care at Home waiver program through 2030, and Medicare telehealth flexibilities through 2027
  • Delays Medicaid Disproportionate Share Hospital (DSH) cuts until 2029, extends Medicare add-on payments for low-volume and rural hospitals until 2027, and allocates $4.6B to community health centers
  • Increases funding for the Department of Health and Human Services (HHS) by $210M, including boosts for the National Institutes of Health (NIH) and Centers for Medicare and Medicaid Services (CMS), while Centers for Disease Control and Prevention (CDC) funding remains flat


TrustWorks Take: The most notable aspect of this bill is what it does not contain: neither the affordability provisions of Trump’s “Great Healthcare Plan” wish list, nor any extension of the enhanced Affordable Care Act (ACA) subsidies. It also rejects the White House’s requests to further defund and reorganize biomedical research, instead preserving or increasing funding for HHS and its NIH, CMS, and CDC subagencies. By including some PBM reforms and taking a small step toward site neutrality, this bill goes beyond the bare minimum. However, it is still a stopgap measure meant to avoid this Congress’s second government shutdown and maintain continuity for popular policies like telemedicine payment and the Hospital-at-Home waiver program.
 
With time running out, we still face a shutdown risk from a few angles. The Senate is on recess this week, and the House is off next week, meaning it will be difficult to iron out any further changes to the bills. And while this healthcare measures in this bill should be relatively uncontroversial, it was paired with appropriations for the Department of Homeland Security. Senate Democrats could spike the deal over its lack of constraints on Immigrations and Customs Enforcement (ICE), even if that results in healthcare funding lapsing as well. Finally, President Trump has yet to weigh in on the bill, which he could interpret as a rebuke of his administration’s health policy vision. No one wants another government shutdown, but the path to avoiding one appears quite narrow. 
 


Best Regards,
Anthony D’Eredita and TrustWorks Collective


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