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State Health Policy Updates to Watch in August 2026

August 2026 state healthcare actions include Idaho launching a task force to study insurer performance issues, Illinois enacting 75 bills covering 340B protections and private equity oversight, Indiana implementing a 6-month moratorium on home and community-based services waiver providers, Massachusetts issuing 12 healthcare affordability recommendations with a directive to increase primary care spending to 12% by 2028, and South Dakota successfully defending its 340B law in federal court.

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State Healthcare Legislative Trends Emerge

States are advancing healthcare legislation across three key areas as legislative sessions conclude. Multiple states enacted insurance reforms targeting utilization management and prior authorization, with Iowa, Utah, South Dakota, Washington, and New Mexico leading efforts. Indiana, Wyoming, and Utah passed Medicaid eligibility verification measures responding to federal reforms. Several states expanded scope of practice for pharmacists and mid-level providers to qualify for Rural Health Transformation Program funding.

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What Are Governors Saying About Health Care? (2025 State of the State Addresses)

Over the past two months, governors across the country have laid out key policy priorities for the next year in their State of the State addresses. This year, the majority of governors have made healthcare a key issue with several highlighting behavioral health, workforce, and affordability as priorities.  

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