Healthcare Preview for the Week of April 6, 2026 [Podcast]

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Despite Congress being in recess this week, there is still activity around funding for the Department of Homeland Security and the release of the president's fiscal year 2027 budget proposal, which includes a 12.5% reduction in discretionary funding for the Department of Health and Human Services. The budget proposal also reorganizes some HHS agencies and emphasizes program integrity efforts to combat fraud, waste, and abuse in healthcare programs.

Why it matters

The proposed cuts to HHS funding and the reorganization of some agencies could have significant impacts on healthcare policy and programs, while the focus on program integrity efforts could lead to changes in how Medicare and Medicaid are administered.

The details

The president's FY 2027 budget proposal requests $111.1 billion in discretionary funding for HHS, a $15.8 billion (12.5%) reduction from FY 2026 levels. The budget also includes a reorganization of some HHS agencies to create the Administration for a Healthy America (AHA), which would include agencies such as the Health Resources and Services Administration and the Substance Abuse and Mental Health Services Administration, as well as some functionalities of the Centers for Disease Control and Prevention. The budget emphasizes program integrity efforts to combat fraud, waste, and abuse in healthcare programs, with $976 million in discretionary funding for these efforts in FY 2027, an increase of $35 million over FY 2026.

• The House is expected to take up the Senate-passed DHS funding measure this week.
• The president's FY 2027 budget was released on April 3, 2026.
• Budget hearings are expected to begin next week, with HHS Secretary Kennedy anticipated to testify before multiple congressional committees.
• The final Medicare Advantage (MA) final rate notice on MA payments for 2027 is expected tonight.
• The federal independent dispute resolution operations rule and the Notice of Benefit and Payment Parameters for 2027 are also expected soon.

What’s next

Budget hearings are expected to begin next week, with HHS Secretary Kennedy anticipated to testify before multiple congressional committees in support of the president's budget proposal. Additionally, the final Medicare Advantage (MA) final rate notice on MA payments for 2027 is expected tonight, and the federal independent dispute resolution operations rule and the Notice of Benefit and Payment Parameters for 2027 are also expected soon.