Weekly StateVitals Update: Volume 57 (February 23, 2026)

Colorado

• Medical Services Board Preliminary Approves Medicaid Cuts. Recently, the Medical Services Board of the Department of Health Care Policy and Financing voted 6 to 1 to preliminary approve an estimated $1.2 million in Medicaid cuts for the current fiscal year and $10 million for the following fiscal year. The cuts will come in the form of stricter caps on the number of hours that caregivers are paid to take individuals with disabilities on outings in the community eligible for reimbursement through a community connector program. The preliminary approval will also seek to cap the hours authorized for reimbursement for homemaker services, inclusive of cooking and cleaning services. The cost of the community connector program has increased by more  than $67 million per year, albeit originally estimated to cost $5 million per year when established. A final vote on the new limitations for the  two programs will happen in approximately four months following the first vote. 

Connecticut

• Administration Seeks to Implement Medicaid Payment Caps for Unioned Nursing Homes. Last week, it was reported that the Department of Social Services is drafting legislation that would seek to place a cap on the amount of Medicaid payments for unionized nursing homes whose owners hire family members at inflated salaries. Notably, the cap would be the average salary for the position occupied by the family members. In such a scenario, the nursing home would only be reimbursed for that individual’s positional services at a rate limited to the average salary for said position and not the actual salary the individual is making. Such a cap already exists for nonunionized facilities and staff members. A Co-Chair of the Senate Aging Committee has already indicated support for the concept and plans to include language into a bill for consideration  in the near future. The industry has expressed concerns that such caps may impact existing collective bargaining agreements that would need to be addressed. 

Kansas

• Senate Passes PBM Regulatory Bill. On Wednesday, the Senate voted 37 to 8 to pass SB 360, which creates a regulatory framework for Pharmacy Benefit Managers (PBMs) under the Kansas Consumer Prescription Protection and Accountability Act. This act would establish comprehensive requirements for entities conducting pharmacy audits, including registration, strict timelines, and limits on recoupments. Other components of the bill include:

  • Requiring PBMs to reimburse pharmacies at the national average drug acquisition cost plus a professional dispensing fee.

  • Mandating PBMs to pass through 100% of all drug rebates to reduce consumer cost-sharing at the point of sale.

  • Prohibiting PBMs from engaging in spread pricing, charging retroactive fees, and reimbursing affiliated pharmacies at a higher rate than non-affiliated ones.

  • Imposing new reporting requirements on PBMs to the Insurance Commissioner, Vicki Schmidt, regarding rebates, reimbursements, and pricing information.

  Insurance Commissioner Vicki Schmidt (R) expressed her support for the increased PBM regulation last month. The bill is now headed to the House and faces a consideration deadline of March 20th.

Minnesota

• Minnesota Court of Appeals Upholds Constitutionality of State 340B Contract Pharmacy Law. This past week, the Minnesota Court of Appeals affirmed a lower court’s decision that a 2024 bill prohibiting manufacturers from limiting the delivery of drugs to a 340B contract pharmacy is constitutional. Passed by the Legislature, the bill follows similarities from state legislation enacted across a myriad of states that manufacturers have faced challenges with in the Courts. Notably, in this most recent ruling, the Court of Appeals ruled that the state law is not preempted by federal law, does not engage in unconstitutional extraterritorial regulation, and does not violate Minnesota’s Single Subject and Title Clause. It’s unclear whether PhRMA will attempt to appeal the decision. 

New Hampshire

• House Votes Against Repealing All Vaccine Mandates. Last week, the House of Representatives killed legislation (HB 1811) to repeal school immunization requirements in a 155-192 vote, with 34 Republicans joining Democrats in voting against the bill. During floor debate, bill sponsor Rep. Matt Drew (R) proposed an amendment to only require the polio vaccine, but the amendment was rejected. Current law requires children to be immunized against diphtheria, mumps, pertussis, poliomyelitis, rubella, rubeola, tetanus, varicella, Hepatitis B, and Haemophilus influenzae type B to enroll in school. The House has considered several vaccine bills this year. Earlier this month, the House passed HB 1719 to remove the Hepatitis B vaccine mandate and HB 1584 to provide notices that medical and religious exemptions to vaccine mandates are available and to prohibit specific forms from being required to obtain exemptions. 

New Mexico

• Legislature Passes Legislation to Repeal Abortion Reporting Requirements. Last Monday, the House of Representatives passed legislation to repeal a state statute that requires induced abortions to be reported to the registrar. The state’s Health Care Authority has reported that reproductive health care providers have faced harassment, and such reporting requirements create increased risks and discourage providers from practicing in the state. The bill was passed earlier this month by the Senate and now heads to Governor Michelle Lujan Grisham (D) for her signature. 

• Lawmakers Wrap-Up Session and Send Bills to Address Healthcare Affordability and Malpractice Reform to the Governor. To close out the session, the New Mexico legislature passed several healthcare measures last week. To address rising premium costs due to expiring ACA tax credits, lawmakers passed HB 4 to increase funding to the Health Care Affordability Fund, which is used to reduce premiums for the state’s Health Insurance Marketplace and for small businesses and their employees. The legislature also passed medical malpractice reforms with HB 99. The bill establishes tiered caps on punitive damages and raises the evidentiary standard to clear and convincing. Lawmakers have contended that malpractice reforms are needed to attract more physicians to the state. Finally, the Legislature enrolled HB 306, which prohibits hospitals and associated health systems from charging facility fees directly to patients for preventative outpatient care, vaccination services, and telehealth services. The bills now head to Governor Michelle Lujan Grisham (D), who has expressed support for signing all three. 

Oklahoma

• Department of Mental Health Purchases Vacant Hospital to be OKC Behavioral Health Campus. Recently, the state Department of Mental Health and Substance Abuse Services finalized the purchase of a vacant hospital in Oklahoma City to become a new Behavioral Health Campus. The Campus will serve as the state’s largest psychiatric facility and replace Griffin Memorial Hospital. The facility still needs renovation, but the state plans to complete renovations of the 32-bed Annex building in March, with further renovations in the main hospital continuing through 2026. The state bought the complex for $18.5 million, and renovations are expected to cost $41.5 million.

Texas

• Federal District Court Prohibits Implementation of Key Provision of Texas Law for Vision Care Plans. This past week, the U.S. District Court for the Northern District of Texas issued a ruling that prohibits Texas from implementing a key provision in HB 1696 (2023). The provision in play would have prohibited vision care plans for encouraging, recommending or trying to influence consumers to obtain covered or uncovered services and products from network providers that provide said services or products at a rate that is less expensive than another network provider. The District Court ruled that such communications with consumers are protected as “truthful and nonmisleading” commercial speech about care and options for vision-care patients in granting the judgment before trial. It’s unclear whether the state will attempt to appeal the decision.

Virginia

• House Recently Passes Bill to Establish PDAB. Similar to recent action by the Senate on their own version, the Virginia House opted to pass HB 483. The bill establishes a Prescription Drug Affordability Board (PDAB), with the authority to conduct drug cost affordability reviews and set upper payment limits (UPLs) by leveraging the Medicare Maximum Fair Price (MFP). The House Republicans continue to argue that the administrative costs of the Board and the lack of meaningful progress in mitigating drug cost increases by states already utilizing PDABs should deter Virginia from moving down this path. The bill was passed with a vote of 61 to 33 and is now under consideration in the Senate. The bills passed by both chambers have identical language, and now go to the opposite chamber for passage before one is sent to the Governor for consideration.

Wisconsin

• General Assembly Passes Postpartum Medicaid Expansion and Breast Cancer Screening Legislation. On Thursday, the General Assembly passed bipartisan legislation to expand postpartum Medicaid eligibility to one year after pregnancy (SB 23) and to require insurance and Medicaid coverage of diagnostic breast examinations and supplemental breast screening examinations without cost-sharing (SB 264). Both measures have been raised in previous sessions, but have been blocked due to opposition by Assembly Speaker Robin Vos (R). However, on Wednesday, eight Republicans in swing districts announced that they had reached a deal with the Speaker to move the bills forward. Wisconsin and Arkansas are currently the only two states that have not expanded postpartum Medicaid eligibility to one year. The bills now head to Governor Tony Evers (D), who is expected to sign them. 

Wyoming

• Abortion Ballot Measure Fails Senate Introduction. Last month, the Wyoming Supreme Court struck down two state laws restricting abortion access. In the ruling, the Court relied on the state’s constitutional right of health care access, which includes the individual right to make health care decisions. The right was approved via ballot measure in 2012 in response to the Affordable Care Act. Following the ruling and during his State of the State address, Governor Mark Gordon (R) called for the legislature to pass a constitutional amendment this session to put before voters. In February, Senator Tim Salazar (R) introduced SJ 7 to propose a constitutional amendment to voters, granting the legislature authority to define “health care” as it relates to the right of health care access and to enact laws regulating health care that are reasonably related to protecting public health and general welfare. However, the bill failed Senate introduction, as Wyoming is currently meeting for a budget session, and non-budget bills require a two-thirds vote for introduction. The bill fell one vote short in a 20-11 vote, with some lawmakers describing the measure as too broad. 

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.