Weekly StateVitals Update: Volume 35 (September 2, 2025)
National
HHS Releases MAHA Tracker. The U.S. Department of Health and Human Services (HHS) recently released a website platform that is tracking all state-level initiatives taken by states that the federal Administration considers to be aligned with the Make America Health Again (MAHA) initiative. Notably, the platform tracks federal reforms, in addition to state reforms, and is intended to illustrate the actions motivated by the MAHA movement and priorities. HHS is highlighting states in the current tracker that have taken action on SNAP waivers to reduce consumption of candy and sugary drinks, the banning of synthetic dyes and additives from school meals, requiring warning labels on products with unsafe ingredients, restricting cell phone use in schools, and restricting lab-grown meat.
Alaska
State Medical Board Provides Initial Approval Concerning Providers Rendering Gender Affirming Care. Recently, the Alaska State Medical Board held an initial vote to consider proposed rulemaking that would authorize the Board to discipline licensees under their jurisdiction for providing gender affirming care to youths. Notated under the Board’s regulations pertaining to unprofessional conduct, the newly approved rule would state that licensees rendering medical or surgical intervention to treat gender dysphoria or facilitate gender transition would qualify as unprofessional conduct. The draft language approved by the Board will now be sent to the Attorney General for review before it receives a 30-day public comment period. Once that comment period has concluded, the proposed rule may be finalized by the Board. Notably, Dr. Matt Heilala, the medical board member who proposed the rulemaking change also submitted his resignation from the board this past week as he prepares for a run for Governor.
California
Governor Vetoes Housing and Behavioral Healthcare Legislation. This past week, Governor Gavin Newsom (D) vetoed AB 1387. The bill would have authorized counties to establish a homeless adult and family multidisciplinary team with the intent to expedite linkage of homeless individuals to housing and other supportive services. Additionally, the bill would have also authorized counties to establish a behavioral health multidisciplinary personnel team to support the connection of justice-involved individuals diagnosed with a mental illness to supportive services while both incarcerated and upon release from county jail. In his veto message, the Governor iterated that the Department of Health Care Services already has an existing program, CalAIm JI, which authorize counties to form these multidisciplinary teams and authorize the sharing of confidential information among providers. The Governor contends it’s duplicative in nature and it would be appropriate to assess the existing program’s effectiveness before attempting to go through this legislative route. The Governor had previously vetoed similar legislation in 2024.
Colorado
Governor Freezes Provider Reimbursement Rates. This past week, Governor Jared Polis (D) issued an executive order that aims to cut $103 million in state spending from eight state departments over the current fiscal year. The executive order came after lawmakers had convened for a special session and ultimately gave Polis the decision where to make spending cuts and make the determination as to how much to borrow from state reserves. The Department of Health Care Policy & Financing will see $79 million of the expected cuts, with $38 million of that being a freeze on a recently enacted provider reimbursement rate increase that had been effective as of July 1, 2025. Other cuts the Governor made from the Department include but are not limited to:
$2.5 million from the Adult Dental Fund for Medicaid Services Premiums.
$1.62 million from the General Fund for Behavioral Health Capitation Payments.
$1.45 million for Adult Comprehensive Services.
The executive order and special session had come as a result, according to Governor Polis, as a result of the recent reconciliation package passed by Congress which was estimated to cause a $783 million deficit in the current fiscal year. The executive order runs through November 30.
Idaho
State-Level DOGE Panel to Explore Medicaid Expansion Repeal. At this past week’s meeting of the state’s DOGE Task Force, Sen. Todd Lakey (R-Nampa) called for the Task Force to investigate whether they should repeal or scale back Medicaid expansion. Considering the Governor’s recent announcement for a mid-year across the board 3 percent cut to most all agencies, there is belief by the Task Force that there may be further need in early 2026 to seek additional cuts. During the Task Force meeting, Rep. Josh Tanner (R-Eagle) noted that the Task Force could examine capping costs at a set amount as opposed to repealing expansion altogether. The Task force intends to meet again on September 29 and October 23.
Louisiana
State Releases Medicaid Dental Benefit RFI. The Louisiana Department of Health released a Request for Information (RFI) this past week that solicits feedback on the state’s current Medicaid dental benefit administration. Currently run by risk-bearing dental benefit program managers, the state is considering the prospect of transitioning administration of the program to a third party administrator within a non-risk bearing model. The RFI wants to hear from vendors specifically who may be able to accommodate such a transition and from vendors who believe they can implement their programming and solutions quickly.
Mississippi
Health Department Declares Public Health Emergency Related to Infant Mortality. Recently, the Mississippi Health Department declared a public health emergency due to the growing rate of infant mortality in the state since 2014. The most recent data illustrates that Mississippi is seeing an infant mortality rate of 9.7 deaths per 1,000 live births. The Department identifies a multi-pronged strategy in its declaration that seeks to curb the increased rate of infant mortality, inclusive of:
Standardizing and regionalizing maternal and infant care and improving transfer systems designating levels of care and expedites transfer via an Obstetrics System of Care.
Eliminating Obstetrics deserts by increasing opportunities via targeted county health departments.
Expanding community health worker programs.
Strengthening targeted care management and home visiting programs for expectant moms and infants at risk.
Partnering with hospitals and providers to reinforce the importance of prenatal visits.
Educating families on safe sleep practices.
North Carolina
Motion Requests Finding that CON Laws are Unconstitutional. This past week, an ophthalmologist in North Carolina at the center of a legal battle challenging the state’s certificate of need (CON) law filed a motion for partial summary judgment. In the motion, the ophthalmologist requests that the trial court find the state’s CON laws are unconstitutional as it grants exclusive or separate emoluments or privileges not in consideration of public services and instead grants monopolies to form.
Back in October 2024, the North Carolina Supreme Court issued a unanimous ruling requiring this trial court to undertake a broad trial to determine whether certificate of need laws in the state are unconstitutional. At issue is the ophthalmologist’s complaint that he could perform a certain cataract surgery for $1,800 while the local hospital charges $6,000 for the same procedure. However, the ophthalmologist contends he is prohibited from purchasing the equipment necessary to perform the procedure because certificate of need rulings have been issued iterating that only the hospital may perform such a procedure in the defined geographic area. The Supreme Court noted in its instructions back to the trial court that, “the complaint contains allegations that, if proven, could render the Certificate of Need law unconstitutional in all its applications.”
Oregon
Federal Court Reinstates Prescription Drug Price Transparency Law. Originally passed in 2018 but suspended shortly thereafter, HB 4005 (2018) as passed by the Oregon Legislature has now been authorized by the 9th Circuit Court of Appeals to move forward with implementation. The law requires drug manufacturers to provide annual price reports to the state for prescription drugs that cost more than $100 for a 30-day supply. As part of the report, manufacturers are required to provide a narrative description and explanation of the financial and nonfinancial factors influencing the drug price increases. Notably, failure to not report can land manufacturers with a $10,000 daily fine. In a 2 to 1 decision, the 9th Circuit iterated the state’s legislative intent was to “reduce information asymmetries in the pharmaceutical market and provide drug purchasers with leverage in negotiations with manufacturers.” The court found that the 2018 law advances that goal.
