Trump admin plans to send $500 rebate checks to some ACA enrollees

The Trump administration last week said it plans to issue $500 in rebates to some Affordable Care Act (ACA) enrollees, describing the rebates as payments for "overcharges" by the Biden administration.

"The Biden administration overcharged Americans through [ACA] plan exchange 'user fees' that were passed on to consumers in the form of higher premiums, funding the operations of the federal [ACA] exchange far in excess of what was needed to run the exchange," the White House said in a fact sheet. "As a result, the Biden administration accumulated a significant surplus of funds that were not used to benefit the Americans who paid these higher premiums."

Each year, the government charges health insurers a percentage of their ACA premiums to help cover the overhead of running the marketplaces and assisting people with enrollment. These user fees, which are typically less than 3% of premiums, are usually passed on by insurers through raised premiums.

The rebates will be sent to ACA enrollees who don't receive premium assistance from the federal government in the 30 states that use the federal government's ACA marketplace. According to the fact sheet, nearly 1 million Americans will receive the $500 rebate checks; however, it's unclear if just people with current coverage qualify for the rebates or if people who previously had plans could also receive them.

It's also unclear what legal authority the administration has to send out payments to a specific group of ACA enrollees and not others. "You need to have a really strong regulatory reason to say, 'We're picking this group and not that group," said Adrianna McIntyre, assistant professor of health policy and politics at Harvard University. "What if Trump said, 'I want to do these rebates, but only in states that voted for me in the last election?' What is stopping him from doing that, but not stopping him from doing this?"

(Caputo, Axios, 9/9; Abelson/Sanger-Katz, New York Times, 9/14; Herman/Bannow, STAT, 9/10)

HHS accelerates efforts to implement AI in medical care

HHS is accelerating its efforts to make AI part of medical care in the United States, putting resources and government support behind projects that deploy AI agents to diagnose and prescribe treatments to patients.

According to people close to the matter who spoke to the New York Times, Vinod Khosla, a billionaire Silicon Valley venture capitalist whose son owns a healthcare AI company, has been especially influential in conversations with HHS officials, including CMS Administrator Mehmet Oz. For over a decade, Khosla has pushed the idea that AI will largely replace doctors, saying at a July AI startup event, "It's over for doctors, human doctors. AI is just going to be better."

HHS awards over $383M in behavioral health grants

HHS last week awarded $383.4 million in grants to strengthen behavioral health treatment, prevention, and crisis response services in the United States.

Of the money being issued, $252 million will go towards the 988 Suicide and Crisis Lifeline, suicide prevention, and mobile crisis services. Meanwhile, $81.4 million will go towards substance use treatment and prevention, and $50 million will be awarded to mental health initiatives.

The grants are funded through HHS's Substance Abuse and Mental Health Services Administration (SAMHSA).

Christopher Carroll, principal deputy assistant secretary for SAMHSA, said in a statement that 988 has "become a critical front door to behavioral healthcare for millions of Americans," adding that "answering the call is only the beginning."

"These investments will strengthen access to treatment and recovery services while ensuring that people in crisis can get the immediate help they need," Carroll said.

(Gleeson, Fierce Healthcare, 9/8)

Trump admin names 4 permanent FDA division leaders

The Trump administration recently filled four leadership positions in FDA following the nomination of Heidi Overton to lead the agency.

Specifically, the administration has named:

• Michael Davis, a psychiatrist, as director of the Center for Drug Evaluation and Research
• Karim Mikhail, a former Merck official, as director of the Center for Biologics Evaluation and Research
• Bret Koplow, an attorney with FDA since 2011, as director of the Center for Tobacco Products
• Jared Seehafer, an entrepreneur and executive who founded a life science software company, as FDA's first deputy commissioner for technology and AI

In a statement, HHS said that the creation of Seehafer's position underscores the administration's commitment to accelerating AI innovation and ensuring an effective regulatory framework for emerging technologies.

"These selections are not just about filling leadership roles — they signal the direction we are heading," said acting FDA Commissioner Kyle Diamantas in a statement. He added the new leaders will help FDA "attract and retain best-in-class talent" while helping it build a workforce that will accelerate innovation across FDA's centers.

(Weixel, The Hill, 9/9)