Health and Human Services Secretary Robert F. Kennedy Jr. wrapped up a bruising round of Capitol Hill appearances this week as the Biden administration’s fiscal 2027 budget request continued to ripen into partisan flashpoints — even as the White House and federal agencies moved to accelerate access to novel mental health therapies and medical devices.
Kennedy testified before four committees this week, bringing his total to seven budget hearings since April 16, 2026. Lawmakers across the spectrum pressed him on a range of issues: Democrats criticized his handling of a recent measles outbreak, past statements on vaccines and proposed cuts to Medicaid and targeted research programs, while Republicans praised administration efforts to combat fraud, promote nutrition and unprocessed foods, and urged stronger action on abortion and rural health. Both parties, repeatedly, stressed the need to sustain robust funding for the National Institutes of Health (NIH).
On the policy front, two separate hearings produced focused debate. At a House Ways and Means Committee session on Medicare fraud, members and witnesses warned that the program’s traditional “pay-and-chase” model is outdated. Republicans urged CMS to modernize detection using advanced analytics and artificial intelligence and to strengthen eligibility verification before payments are made; Democrats warned that cuts to inspectors general and oversight staff have left gaps. The session coincided with a Government Accountability Office (GAO) report noting that CMS only began sharing information about provider payment suspensions with supplemental payers in December 2025 — a previous lack of transparency that allowed some supplemental insurers to pay beneficiary cost-sharing on claims now suspected to be fraudulent.
Bipartisan concern also surfaced at a House Education and Workforce Subcommittee hearing on pharmacy benefit managers (PBMs). Lawmakers and expert witnesses agreed on the need for reform, with Democrats highlighting hidden fees, spread pricing and potential kickbacks that may advantage manufacturers over patients, and Republicans pressing for greater transparency and data to regulate the market effectively. Witnesses urged lawmakers to craft legislation that would require clearer PBM reporting and give regulators the data needed to police pricing practices.
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Separately, President Donald Trump signed an executive order aimed at accelerating treatments for serious mental illness — notably including directives to fast-track psychedelic-based therapies. The order instructs the Food and Drug Administration to award national priority vouchers to psychedelic drugs that secure breakthrough therapy designation and calls on the FDA and Drug Enforcement Administration to establish Right to Try pathways for qualified patients. It directs HHS to allocate at least $50 million through the Advanced Research Projects Agency for Health (ARPA-H) to partner with states advancing psychedelic research, and asks the attorney general to review any Schedule I substance that completes Phase 3 trials for a serious mental disorder.
Implementation has already begun: ARPA-H announced a new initiative, Evidence-Based Validation & Innovation for Rapid Therapeutics in Behavioral Health (EVIDENT), which will fund up to $139.4 million to spur therapies for behavioral health conditions and will match at least $50 million in state investments as envisioned by the order.
In a related move to speed innovation into clinical use, CMS and the FDA unveiled the Regulatory Alignment for Predictable and Immediate Device (RAPID) coverage pathway. RAPID is designed to replace — and pause new candidates under — the Transitional Coverage for Emerging Technologies pathway and will apply to certain Class II and III devices designated as breakthrough products. Under the new approach, CMS will engage manufacturers earlier in development and will issue a proposed national coverage determination the same day an eligible device receives FDA market authorization, a step intended to shorten the delay between regulatory approval and Medicare beneficiary access.
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The flurry of hearings, regulatory launches and executive directives underscores a broader White House push to bring new therapies and devices to market more quickly even as Congress continues to grill HHS on budget priorities, vaccine policy and program integrity. Lawmakers will reconvene next week for additional oversight sessions, and regulators are expected to issue key rulemakings in the coming months, including final guidance on independent dispute resolution operations and the Notice of Benefit and Payment Parameters for 2027.
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