Weekly StateVitals Update: Volume 53 (January 26, 2026)

Connecticut

• Subsidies Still Planned for State-Based Exchange Enrollees. Despite an initial pledge in December to appropriate $115 million to partially fund lost subsidies from the enhanced Advance Premium Tax Credits, the state’s exchange still reflects premiums and costs that are untied to any state assistance. With that in mind, consumers have an extended deadline through January 31, 2026 to enroll in coverage on the state-based exchange, albeit they won’t see their specific subsidy information until the state releases the funds which may not happen until March of 2026. Another extension is possible given the premiums currently listed on the exchange may be dissuading consumers from enrolling. However, assuming the funds are dispensed, it’s expected that households with yearly income between 100 and 200 percent of the federal poverty level (FPL) would receive a state subsidy equal to 100 percent of the lost federal aid. For those between 400 and 500 percent of the FPL, the state assistance should equal half of the lost federal subsidy amounts. The Governor’s plan would also maintain full funding for coverage of 50,000 enrollees with incomes just above the level needed to qualify for Medicaid. There remains a possibility that enrollment in the exchange may be further extended beyond the January 31 deadline.

Florida

• Senate Committee Advances Bill Authorizing Lawsuits Against Drug Manufacturers and Advertising. This past week, the Senate Regulated Industries Committee voted 5 to 3 to advance SB 408. The measure would authorize consumers who are injured by vaccines to sue drug manufacturers that advertise those vaccines. Sen. Erin Grall (R-Vero Beach) opined that the decline in childhood vaccination rates is a result of trust with manufacturers and an ability to hold manufacturers accountable could improve trust with manufacturers. Most healthcare stakeholders were opposed to the measure. The measure now heads to the Senate Health Policy Committee for consideration.

Idaho

• House and Senate Health and Welfare Committees Consider $22 Million in Medicaid Cuts.  This session, Members of the House and Senate Health and Welfare Committees are faced with cutting $22 million in Medicaid spending to balance the budget put forth by Governor Brad Little (R).  Two weeks ago, Governor Little announced the budget as the ENDURING IDAHO plan during the State of the State address. His recommended $22 million cut comes on top of a previous $23 million cut implemented this fall, which reduced Medicaid reimbursements to providers by 4%. Any additional cuts made by the committee are expected to reach the Joint Finance and Appropriations Committee (JFAC) by early February. The JFAC is scheduled to meet with the state’s Division of Medicaid on January 22 to discuss proposed budget changes.

Illinois

• HHS OCR Sends Letter to Illinois Requesting Adherence to Federal Conscience Protections Laws.  This past week, the U.S. Department of Health and Human Services (HHS) Office of Civil Rights (OCR) issued a letter to Illinois that threatens to withhold both HHS grant and Medicaid funding from the state if the state doesn’t stop enforcing a state law requiring medical providers to refer patients for abortion services. A 2017 law enacted in Illinois allows providers to refuse to provide abortion care but instead requires that they provide information, refer or transfer a patient to a provider who would provide such care. OCR contends such a referral requirement violates federal conscience protections law. Illinois has 30 days to assure the federal government that they will follow federal law. Failure to comply could result in the state losing aforementioned HHS grant funding or Medicaid dollars, albeit no specificity is provided as to what that total penalty may look like. Governor JB Pritzker (D) has iterated that his office is reviewing the the letter and will respond appropriately.

Maine

• Claims of Medicaid Fraud Intensify in Committee Hearing. This past week, the Government Oversight Committee considered testimony provided by Republican lawmakers that cited concerns over fraudulent billing activity in the state’s Medicaid program. Citing a federal audit, the testimony urged the state to open a formal investigation into Medicaid expenditures, specifically reimbursements to providers. This testimony follows the release this past week by the U.S. Department of Health and Human Services (HHS) a report finding in excess of $45 million in improper payments related to providers of autism services for children enrolled in Medicaid in Maine. Notably, many of those services were related to rehabilitative and community support services beginning in 2023. The state had responded to those initial findings in late 2025 and agreed with them. Importantly, the audit released that found such findings was part of a periodic auditing process and was not triggered by any allegation against Maine. It remains unclear whether the committee will take any formal action. 

New Mexico

• State Legislators Introduce Healthcare Bill Package. This past Tuesday, New Mexico Senators introduced a package of 14 healthcare bills focusing on addressing the state’s physician shortage and improving access to care. Five of the 14 bills incentivize healthcare workforce development and establish additional protections for clinical autonomy. These include:

  • SB 1, which enacts the interstate medical licensure compact to create an expedited licensure process for physicians working across state lines. The bill would also prevent licensed physicians from being suspended for performing gender-affirming care or reproductive health services.

  • SB 12, which creates a $4,000 annual income tax credit for physicians who provide at least 1,584 hours of care.

  • SB 13, which expands a gross receipts tax deduction for health care practitioners to include coinsurance receipts and extends the deduction from 2028 to 2031.

  • SB 15, which requires health insurers to cover all types of healthcare providers working within their legal scopes of practice.

  • SB 16, which prohibits health care entities from interfering with providers’ clinical decisions.

  The remaining nine bills appropriate over $2.255 billion for Medicaid ($1 billion) and behavioral health trust fund ($650 million) support, and other healthcare workforce development investments ($605 million). New Mexico operates on a relatively shorter legislative session, where the bills will have until February 19th to progress before the session ends.

• House Committee Advances Licensure Compacts. This past week, the House Health and Human Services Committee passed nine bills related to medical licensure compacts. Following similar efforts in the Senate, there was broad bipartisan support in the House to increase the number of compacts under consideration by the Legislature this session. The focus on licensure compacts came after licensure reciprocity was included as a scoring criteria in the Rural Health Transformation Program that provides added weight to states’ applications if included. This past week, the following licensure compacts were pushed out of committee: 

  • HB 10, which would enact a physician assistant interstate compact.

  • HB 11, which would enact an audiology and speech-language pathology compact. 

  • HB 12, which would enact a physical therapy licensure compact.

  • HB 13, which would enact an occupational therapy licensure compact.

  • HB 14, which would enact a dentist and dental hygienist compact.

  • HB 31, which would enact an EMS personnel licensure interstate compact.

  • HB 32, which would enact a counseling licensure compact. 

  • HB 33, which would enact a psychology interjurisdictional compact.

  • HB 50, which would enact a social work licensure interstate compact.  

  The measures will now head to the House Judiciary Committee for consideration. 

New York

• Governor Hochul Announces State Budget Proposal. Last Tuesday, Governor Kathy Hochul announced her $260 billion budget proposal for FY 2027. Despite federal Medicaid cuts, the budget notably stabilized Medicaid funding to $38.2 billion without increasing income taxes. This funding, in part, comes from $1.2 billion in savings generated by centralizing the administration of the state’s Consumer Directed Personal Assistance Program (CDPAP) to reduce overhead costs. Overall, the proposal marks a 0.7% increase in funding and comes a week after the announcement of several proposals to strengthen health care access and the state’s care delivery system. Despite the initial offset in the next FY, it’s expected that long-term, the state will have to realize lost revenue from lost federal revenue when enrollment is expected to drop in earnest beginning in 2027 and 2028. 

North Dakota

• Special Session Commences to allocate Rural Health Transformation Funds. On Wednesday, North Dakota Legislators began a 3-day special session to appropriate the $199 million in funding awarded for the first year of the Rural Health Transformation Program. Governor Kelly Armstrong (R) began with an address to legislators detailing four key objectives: promoting healthy lifestyles to address physical and mental health, expanding access to health services through technology, strengthening the rural health workforce, and using data “to create a healthcare system that is smarter, faster, and more responsive.” Aligned with these goals are four pieces of proposed legislation:  

  • HB 1621: Requires student participation in the Presidential Physical Fitness test.

  • HB 1622: Enters the state into the Physician Assistant Licensure Compact, allowing physician assistants licensed in member states to practice in North Dakota.

  • SB 2401: Requires physicians to complete 1 hour of continuing education on nutrition.

  • SB 2402: Expands pharmacists' scope of practice to order laboratory tests, replace prescribed drugs with therapeutic equivalents, and prescribe additional drugs and devices.

  During this session, legislators will also consider SB 2403, to provide emergency loans for hospitals in the State. The legislators have until Friday to pass the special session bills.

Oregon

• Governor Directs $25 Million to Maternity Care. This past week, the Oregon Health Authority and Governor Tina Kotek (D) announced a $25 million investment in hospital-based settings to support access to maternal health services. As part of that investment $15 million will provide stabilization payments to smaller, rural hospitals that offer maternity services, inclusive of hospitals with less than 50 beds. An additional $10 million will be invested in larger hospitals through DRG rates and reflected in the 2026 Medicaid rates, with the intent to draw down a federal match for greater impact. The intent is to determine whether such specific investments like this will prevent rural and safety net settings from cutting their labor and delivery units. 

Texas

• OIG and HHSC to Investigate Medicaid Fraud. Recently, Governor Greg Abbott (R) announced that his office would be directing the Texas Office of the Inspector General (OIG) and the Health and Human Services Commission (HHSC) to investigate the potential of any fraud arising within the state Medicaid system, given fraud uncovered in other states. Part of the investigation is specific to Medicaid managed care organizations and ensuring that they have fully staffed special investigation units and are conducting mandatory investigative activities to root out fraud. The lone specific covered benefit that was called out by the Governor’s office was a direction to complete a targeted utilization review of autism services and provide a report of any activities arising from that review by June 2026. The first progress report is due to the Governor’s office by OIG and HHSC by March 15, 2026.

• Attorney General Launches Investigation into Financial Incentives and Childhood Vaccine Recommendations. This past Friday, Attorney General Ken Paxton opened an investigation into whether medical providers have been illegally incentivised to recommend certain childhood vaccines. Notably, the investigation will look at whether pediatric medical providers, insurance companies, vaccine manufacturers and other entities engaged in deceptive or unlawful conduct as a result of financial incentives connected to administration of childhood vaccines. As part of the investigation, the Attorney General is issuing more than 20 Civil Investigative Demands to interested parties in the coming weeks. It remains unclear who will be part of those 20 demands, beyond two named companies in the press release. 

For additional information and updates on state activity this past week relative to state COVID-19 vaccine guidance, StateVitals Subscribers can check out our guidance tracker.