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.

Healthcare policy groups including FARB, NAIC, NAMD, NASHP, and NCOIL serve as platforms for state policymakers to collaborate and shape emerging trends. In 2025, multiple organizations adopted model legislation on facility fees and site-neutral payments, with NCOIL passing its Prior Authorization Reform Model Act in November. Groups are now focusing on the Rural Health Transformation Program and 340B oversight for 2026.

As federal vaccine recommendations become less consistent, states are increasingly asserting independent authority over immunization policies. Several states formed regional collaboratives for vaccine guidance and procurement in late 2025, while others enacted legislation replacing federal recommendations with state-based advisories. Conversely, some states like Florida are moving to eliminate school vaccine mandates and emphasize parental choice through regulatory changes.

The Rural Health Transformation Program, created under the One Big Beautiful Bill Act, represents a $50 billion federal investment distributed as $10 billion annually from 2026-2030. All 50 states submitted applications in November requesting typically $1 billion each. CMS will announce awards by December 31, 2025, with half distributed equally among approved states and half awarded discretionally based on compelling initiatives and demonstrated need.

Fifteen governors launched a public health alliance to improve emergency preparedness and coordination across state lines, while CMS announced all 50 states applied for the $50 billion Rural Health Transformation Program. California enacted major healthcare transparency and PBM oversight legislation, Colorado proposed significant Medicaid spending cuts, and Massachusetts advanced prior authorization reforms.

CMS released guidance for states applying to the Rural Health Transformation Program's $50 billion in federal funding distributed between FY2026-FY2030. States like Mississippi, Oklahoma, North Dakota, and Washington are conducting stakeholder surveys and forming committees to develop applications focusing on workforce development, technology infrastructure, and healthcare access improvements. Applications are due November 5, 2025, with approvals by December 31.