Marco's Morning Report

Saturday, August 8, 2026
Normal edition · Cape Coral, FL

Morning, Marco — hope the night was survivable. Quiet weekend for clinical guidelines, but Washington had a loud week before leaving town: the 340B fight now has two branches pulling in opposite directions, the CDC has a confirmed director for the first time in a year, and the Senate spent Tuesday arguing about the exact mechanism your hospital's Medicaid dollars travel through. Coffee, ten minutes, then sleep.

ATop Stories

Update: A bipartisan Senate bill would kill the 340B rebate pilot HRSA just restarted

Three days after HRSA published its revised 340B Rebate Model Pilot Program in the Federal Register (effective immediately, manufacturer plans due August 24), the Senate's bipartisan "Gang of Six" — Capito, Moran, Boozman, Baldwin, Kaine and Hickenlooper — introduced the SUSTAIN 340B Act, which would end the rebate pilot outright, codify covered entities' use of contract pharmacies (with audits for entities running large networks), and — for the first time in statute — define who counts as a 340B "patient."

Why it matters  This is the same policy question you read about here Tuesday, now being fought on two tracks at once: the administration moving by notice, Congress moving by statute, in opposite directions. Rebates change your pharmacy's cash flow (pay list price up front, get money back later); the "patient definition" question changes which of your discharges generate 340B savings at all. Both land on the same rev-cycle and pharmacy teams.

Talking point  When you ask pharmacy about the Aug 24 deadline, add a second question: are they modeling the pilot as permanent, or as something Congress may unwind? The answer changes whether this is a workflow build or a bridge. (McDermott+ Check-Up, Aug 7 · HRSA)

CDC has a confirmed director again — and that unblocks the vaccine pipeline you read about Wednesday

The Senate confirmed Dr. Erica Schwartz (MD, JD, MPH) as CDC director Wednesday on a 51–44 vote — all Republicans plus Sen. Kaine — filling a vacancy that had run nearly a year. Coverage landed through Thursday and Friday.

Why it matters  The CDC director is the person who accepts or rejects ACIP recommendations, and those recommendations are what trigger cost-sharing-free coverage in commercial plans and Vaccines for Children. That sign-off channel has been empty. It's precisely the bottleneck behind the mFlusiva problem from Wednesday's report — FDA approved the product, but there was no functioning path from approval to "your patient can actually get it covered." With a confirmed director, that path exists again, whichever way she uses it. Note also that during the vacancy HHS moved unilaterally on the pediatric schedule (including delaying the hep B birth dose); the authority now sits with a Senate- confirmed official.

Suggested action  Worth a note to pharmacy and infection prevention before September: the answer to "can we put this on the discharge order set?" may change in the next 4–6 weeks, and you want to be asking before flu season, not during. (STAT · NPR · CNN)

Congress is gone until September — here's what's parked, and what still has an August clock

The Senate finished its business Friday and left for recess; the House returns the week of Aug 31, both chambers the week of Sept 14. A continuing resolution funding the government to December 11 passed the Senate but still has to be reconciled with the House version. Nothing legislative moves on health policy for three weeks.

Why it matters  The regulatory clock, unlike Congress, does not take August off. Three deadlines run while the Hill is empty: Aug 24 — manufacturer plans for the 340B rebate pilot; Aug 31 — comments on the CY2027 OPPS proposed rule (which includes the survey-based 340B drug reimbursement proposal and price-transparency RFI); Sept 14 — comments on the CY2027 Physician Fee Schedule, where the temporary 2.5% update from CY2026 expires and most specialties see a net reduction.

Suggested action  If your group has ever wanted to file a comment as a group rather than let the hospital association speak for you, the PFS window (Sept 14) is the one that touches your paycheck most directly, and there's a full month of runway. (Holland & Knight summary)

BThe Debate

Should states be allowed to fund their share of Medicaid by taxing the very providers Medicaid pays?

Why it's live right now: The Senate Budget Committee held a hearing titled "Medicaid: The Reality" on Tuesday — its first under new chair Sen. Ron Johnson — and it turned contentious fast. Provider taxes and state directed payments, both being scaled back under H.R.1 and its implementing rules, were the core of it. Every Senate Democrat also signed a letter the same week calling for repeal of the Medicaid work-requirements interim final rule. Florida is directly in frame: Sen. Rick Scott led much of the questioning.

For — keep them

Andy Schneider, JD, Georgetown McCourt School / Center for Children and Families (witness)

Nearly every state uses provider taxes, and they do so under explicit federal authority with federal oversight and statutory limits — this is not a loophole anyone stumbled into, it is a financing tool Congress wrote and CMS polices. Strip it out and you are not removing an accounting trick; you are removing real dollars from hospitals, nursing homes, psychiatric facilities and maternity services that already operate on Medicaid margins. Democrats on the panel tied cuts already enacted to hospital closures in rural districts, and argued that pairing reduced financing with new work-reporting and redetermination requirements simply delays care until patients are sicker and more expensive. (Full written testimony, Aug 4)

Against — curtail them

Brian Blase, Paragon Health Institute (witness), with Sen. Rick Scott (R-FL)

The mechanism is circular by design, Blase argued: a facility pays money to the state, the state routes that same money back to the facility as a Medicaid payment, and the federal match multiplies it — so a state can grow its Medicaid spending without putting in additional state money. The federal government ends up funding a larger share than the statute intended, and the benefit flows disproportionately to government-owned providers. His example: California government ambulance providers paid more than three times what private ambulance providers get for the same Medicaid service. Co-witness Jonathan Ingram added that state program-integrity units are receiving more money than ever while investigations, indictments, convictions and recoveries have all declined. (Scott's hearing summary, Aug 2026)

Where it might land: No vote is scheduled — the provider-tax phase-down is already law under H.R.1, so the live question is how aggressively CMS writes the implementing rules. Congress returns Sept 14.

COn My Radar

DTrends to Watch

EIdeas & Opportunities

H · Background / Already Covered
📚 Archive · last 7 morning reports

That's the lot. Nothing on today's list needs you before Monday — sleep well, Marco.