| Decreases: Florida will lose the most funding in dollar terms, with its award falling $6.1 million compared to fiscal 2026, to $203.8 million. New Jersey will see the steepest percentage decline, with its allocation dropping 3.3 percent to $142.3 million. Vermont and New Jersey will each see reductions of about $5 million. Unpacking the changes: Half of the program’s annual $10 billion is divided equally among the 50 states, giving each $100 million every year for five years. The remaining half is distributed based on factors including rural health needs, state initiatives and policy decisions. CMS said that it reviewed annual progress reports from all 50 states detailing how they implemented the first round of funding. The agency also considered states’ progress on certain policies favored by the administration, including bringing back the Presidential Physical Fitness Test in schools and requiring physicians to complete continuing medical education on nutrition. → The announcement is coming later than expected, and KFF Health News reported about the reasons for the delay last week. The outlet also reported that several states were concerned about the burdensome reporting requirements amid tight deadlines. Three biopharmaceutical industry groups are suing the Trump administration over its experimental model to tie prices for drugs in the Medicare Part B program to what other wealthy countries pay. The Biotechnology Innovation Organization, Biocom and California Life Sciences filed suit on Friday, challenging what’s known as the Global Benchmark for Efficient Drug Pricing (GLOBE) model. “For nearly a decade, Congress has considered — and repeatedly rejected — legislation tying American drug prices to foreign government price controls. Yet the Executive Branch now claims unilateral authority to impose the policy Congress refused to enact,” begins the new complaint from the biotech industry groups. CMS has previously said it doesn’t comment on pending litigation. → It comes a month after Pharmaceutical Research and Manufacturers of America (PhRMA), a major industry group for drugmakers, challenged GLOBE in the U.S. District Court for the District of Columbia. Like PhRMA, the lawsuit from this trio of biotech groups also raises constitutional objections to the GLOBE model, including arguing that CMS is making policy and spending decisions that belong to Congress. The groups, which also argue that the pilot program doesn’t benefit patients and would harm innovation, want the court to strike down GLOBE entirely. If it’s allowed to continue, the groups say, CMS could vastly expand this limited, seven-year pilot. “The agency’s decision to exempt particular products today supplies no enduring statutory limit on the power it asserts for tomorrow. The potential consequences of that broader authority are substantial,” the lawsuit reads. → In my October write-up on the PhRMA lawsuit, I pointed out the preemptive defense CMS made against the anticipated legal challenges when it finalized the GLOBE model. Revisiting this quote: “We acknowledge that manufacturers may disagree with the GLOBE Model’s rebate methodology and may believe that the rebate obligations are excessive,” CMS wrote in the final rule. “However, disagreement with payment policy does not establish a constitutional violation.” “White House staff gave Trump bad advice, treated him ‘like a baby,’ ex-aide says,” The Post’s Rachel Roubein writes. “Medicare Advantage premiums are getting cheaper — but there’s a catch,” John Csiszar writes for The Post. “RFK Jr. May Be Finding a Stronger Foothold in Trump’s Administration,” Paige Winfield Cunningham reports at the Washington Sun. “The hospital hiding in a strip mall: Mon Marion Neighborhood Hospital in West Virginia is part of a burgeoning trend of micro-hospitals, diminutive facilities with less than 50 beds.,” reports Healthcare Dive’s Sydney Halleman. Reuters’ Sneha S K reports that “FDA orders new eye risk warnings for Ozempic, Zepbound.” This newsletter is published by WP Intelligence, The Washington Post’s subscription service for professionals that provides business, policy and thought leaders with actionable insights. WP Intelligence operates independently from The Washington Post newsroom. Learn more about WP Intelligence. | 
