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October 17, 2026

Takeaways from the most recent news in the technology and policies shaping healthcare.

Government

Stopgap Funding Bill Delays Grant Rule Opposed by Hospitals

By Healthcare Technology News ·

Congress has passed a short-term spending bill that keeps the federal government funded through Dec. 11 and temporarily blocks a proposed federal grant rule that hospitals warned could threaten their funding, according to Becker's Hospital Review. The House cleared the continuing resolution on Sept. 1 in a 370-48 vote after the Senate approved it 90-6 in August. The measure now heads to President Donald Trump.

The American Hospital Association had raised concerns about the proposed grant rule, and the stopgap language pauses it, at least until the new December deadline. That gives hospitals and their advocates a window to push back before the rule can take effect.

In practice, the reprieve is temporary. A continuing resolution funds agencies at existing levels without resolving underlying budget fights, setting up another deadline in December when the grant rule and broader appropriations questions return. Hospital finance teams should treat the delay as a pause, not a resolution.

Sources

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Government

CMS Targets PBM Fees and MA Directory Accuracy in New Rule

CMS proposed a rule on Oct. 16 that would publicly score Medicare Advantage provider directories and mandate flat-fee payment structures for PBMs, with comments due Dec. 15.

Why it matters: Public directory scores and flat PBM fees would reshape how Medicare Advantage plans and drug middlemen operate and get paid.

Government

Pennsylvania Sues Insulin Makers and PBMs Over Pricing

Pennsylvania's attorney general sued three insulin makers and several PBMs, alleging they colluded to manipulate insulin prices and raise patient costs.

Why it matters: The case adds to mounting legal pressure on insulin pricing and PBM rebate practices that determine what diabetic patients pay at the pharmacy.

Government

CMS Shaped AI Health Policy in a Private Slack

A KFF Health News investigation found CMS used a 1,700-member Slack of tech executives and investors to help shape federal AI healthcare policy outside public channels.

Why it matters: Federal AI rules will govern how healthcare algorithms are paid for and deployed, so who gets private access to shape them affects the entire industry.