Happy New Years Readers!  

In this January edition of Health Policy News, we turn our attention to the early trends and decisions impacting health policy this year. We highlight the factors shaping nationwide discussions, including significant funding actions, emerging state‑driven approaches, and the legislative dynamics that may guide priorities in the year ahead. 

This month’s edition continues our coverage of the Rural Health Transformation Program. We highlight the recent funding awards as states turn toward implementation. We also have a final article in our Section 1332 Waiver series, different approaches to state innovation through the waiver authority. Finally, we examine how legislative calendars shape EMS payment policy. Together, these pieces offer a comprehensive look at the factors influencing health policy decision‑making as the year gets underway. 

 Rural Health Transformation Program Applications Awarded: Overview of State Funding 

In December 2025, the Center for Medicare and Medicaid Services (CMS) announced funding awards for all 50 states that applied to the Rural Health Transformation Program (RHTP). The $50 billion initiative will distribute funds over five years to support state‑led efforts to assess and strengthen rural health care delivery. PCG subject matter experts have been monitoring the program since its launch and has compiled a summary of funding outcomes reflected across state applications. To read more, Click Here.

And, as states gear up for the Rural Health Transformation Program, evaluation has never mattered more. With the $50 billion at stake nationwide and heightened CMS accountability, states must design evaluation and monitoring strategies that prove impact, ensure financial sustainability, and support compliance reporting. In next month’s HPN, we will explore how advances in AI, public dataset integration, and modern evaluation methods can help states accelerate insights, de‑risk compliance, and demonstrate lasting improvements in rural health—while meeting the demands of a new era of federal health evaluation. 

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Section 1332 Waiver Series: Unique Waiver Approaches 

In the final installment of our Section 1332 Waiver Series, we take a closer look at how states are leveraging these waivers beyond state-based reinsurance programs. While the majority of approved waivers focus on reinsurance, Hawaii, Washington and New York have implemented innovative approaches that expand coverage, lower costs, and maintain federal compliance in unique ways. To read more, Click Here. 

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How 2026 Legislative Calendars Shape EMS Medicaid Rates 

The 2026 statehouse calendar is the clock that sets EMS reimbursement strategy. Most legislatures convene early, which creates short windows to advance Medicaid rate‑setting, treatment‑in‑place (TIP), alternative destination transports, and balance‑billing protections. This article explains which states are in session, how bill deadlines and budget cycles shape EMS options, and how federal guidance fits into fee‑for‑service and managed care changes. Tighter FY 2027 budgets may influence rate negotiations, while rural health funding and recent state reforms may create new opportunities for EMS sustainability. To read more, Click Here 

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