Weekly StateVitals Update: Volume 30 (August 4, 2025)

National

White House Announces New Patient Records System. The collaboration between the federal government and major technology companies is intended to allow patients to track and share their medical records and data among doctors, hospital systems, and health applications, according to the administration and participating companies. The federal government, specifically the Centers for Medicare and Medicaid Services (CMS), will maintain this system. It will consolidate health data from large tech companies like Amazon, Google, and Apple, as well as major healthcare entities such as the Cleveland Clinic hospital system and insurer UnitedHealth Group. CMS states that patient medical records and data will be kept secure, and patients will need to opt-in to participate in data sharing.

Three States Have Still Not Completed Their Budgets for FY25. In Pennsylvania, the Republican-controlled Senate removed almost $1 billion from the House-passed budget. While discussions remain ongoing, progress on a resolution has been slow. In Michigan, negotiations between the Republican-controlled House and the Democrat-controlled Senate appear to have fallen apart, with Republicans removing the Democrats' vice chair of the House Appropriations Committee after key Republican non-tax measures failed to pass. Note that Lansing has been deadlocked for most of the session, with only a single-digit number of bills passed so far this year. While North Carolina is moving a mini-budget to pay for key investments such as teacher pay, legislative leaders have still not reached an agreement on a full budget. Debates continue on personal income tax reduction, and may be concluded by the next time the legislature meets in late August.

Arkansas

Federal Judge Blocks PBM Law Prohibiting Pharmacy Ownership. On Monday, July 28 Federal Judge Brian Miller issued a preliminary injunction against the law restricting pharmacy benefit managers from obtaining pharmacy permits. HB 1150, now referred to as Act 624, was signed by Governor Sanders (R) in April and was to take effect on August 5, but wouldn’t require PBMs to relinquish pharmacy permits until January 1, 2026. Similar measures have been introduced in Indiana, Louisiana, and New York, but none have been enacted as yet. Attorney General Tim Griffin (R) announced he plans to appeal the decision.

California

Governor Newsom Issues Executive Order to Address Mental Health of Men and Boys. The order mandates that the state Health and Human Services Agency propose solutions to reduce suicide rates in young men. Additionally, it requires the agency to facilitate access to mental health services and connect them with educational and career prospects. Governor Newsom's (D) recent order requires state agencies to bolster male participation in community volunteer programs and cultivate pathways for men to enter teaching and school counseling professions. Furthermore, the order directs officials to recommend strategies for increasing young men's involvement in state career education and training initiatives, as well as an effort to improve student outcomes. An update on these directives is required within two months. 

Colorado

Special Session May Be Called to Address Federal OBBBA. Legislative leaders met on Friday, July 25 to discuss a possible special session to address potential budget implications as a result of the passage of the “One Big, Beautiful Bill Act” (OBBBA). The special session is expected to begin on August 18. The executive committee of the Legislative Council, the six-member group of legislative leaders, is expected to discuss the special session and meet with state economists, including from the governor's office, to go over the budget and determine if a special session is needed at this point. Most of the provisions of the OBBBA don’t take effect for many months which could give states time to adjust their budgets in their next regular session.

Maryland

PDAB Determines Two Diabetes Drugs are Unaffordable.  On Monday, the Maryland Prescription Drug Affordability Board unanimously determined that Jardiance and Farxiga, medications used to treat type-2 diabetes and other conditions, likely present an affordability challenge for Maryland and its state healthcare system. The PDAB passed two resolutions indicating that the state should explore options to reduce the costs of these prescription drugs. The PDAB staff will now draft a report and identify drivers of affordability challenges and policy options to address them, which could include Upper Payment Limits (UPL).