The following is an update of selected state health policy developments in Pennsylvania from July 11 – July 17 (Some of the language used below is taken directly from state documents). 

Budget Update

The General Assembly passed a comprehensive Fiscal Year (FY) 2026-2027 budget. The state Senate passed House Bill 2400 – the General Appropriations Act – by a vote of 44-6. The House of Representatives passed it by a vote of 167-35, sending the bill to Governor Shapiro who offered quick signature to conclude the process. Additionally, the Governor quickly signed the Fiscal Code Bill along with other budget-related bills, enacting the various pieces of legislation necessary to implement the FY 2026-27 budget agreement.

In the health and human services space, the $50.8 billion spending plan provides new spending for Medicaid supports under PA’s approved federal 1115 Waiver, an increase in the floor for the Budget Adjustment Factor (BAF) for nursing facilities under Medical Assistance, a rate increase for the LIFE Program, and offers $41 million in new behavioral health dollars to support the 988 crisis hotline, walk-in stabilization clinics and other transition supports to individuals reentering the community out of the criminal justice system or state hospital care, among other areas.

The budget was balanced through the utilization of “cycle rolls” – which will push Medicaid capitation payments into other fiscal years as well as utilizing $1.2 billion in lapsed funds. The Rainy Day fund remains untouched as legislators did not utilize any of its balance to help close a budget deal. 

General Assembly

The following are healthcare-related bills or cosponsor memos released by legislators this past week

• Rep. Liz Hanbidge released a co-sponsor memo for a comprehensive update to the Child Protective Services Law and a co-sponsor memo to update the Uniform Law Commission model law for advance healthcare directives.
• Rep. Dan Williams and Rep. Tina Pickett issued a co-sponsor memo to broaden the allowance of advanced practice professionals to provide on-site coverage for behavioral health care provided through telehealth.
• Rep. Sean Dougherty circulated a co-sponsor memo for a resolution directing a Legislative Budget & Finance Committee study on behavioral health care in county jails.
• Rep. Dan Frankel and Rep. Bryan Cutler introduced HB 2702, legislation to repeal the sunset date for the PA Health Care Cost Containment Council.

The state House will return on September 9^th and the state Senate returns on September 28^th.

Department of Human Services

In an ever-changing healthcare landscape, stay plugged in to DHS updates for managing HR 1, new rules and regulations, among others. DHS’ Human Services Helpers, on the Substack platform – a media platform for video, podcasts, etc. – covers DHS program updates, agency news, and how organizations and partners can help their communities.

The Department released its 2026 Healthcare Common Procedure Coding System (HCPCS) Updates, Fee Adjustments and Other Procedure Code Changes.

DHS issued its August 2026 Remittance Advice Date guidance for providers.

The Department shared a Medical Assistance Bulletin for Prior Authorization Guidelines for Standers.

DHS also shared a preview of their All courses | MyODP training portal, a new resource for self-paced learning designed to support families and caregivers as they navigate the complex and often challenging landscape of pediatric complex care.

Department of Health

The Department of Health has exercised its one-year extension of the temporary scheduling of Nitazene substances as a Schedule I substance.

DOH issued a Health Advisory Network alert regarding cyclosporiasis and provider considerations and testing recommendations.

The Department of Health launched a measles dashboard to keep Pennsylvanians better informed about cases and ongoing efforts to contain the spread among people who are unvaccinated.

PA Health Care Cost Containment Council

The Pennsylvania Health Care Cost Containment Council (PHC4) released the Cardiac Procedures Report today, displaying performance ratings and utilization data for several cardiac procedures performed in Pennsylvania acute care hospitals, hospital outpatient departments, and ambulatory surgery centers (ASCs) from Jan. 1, 2023 through Dec. 31, 2024. 

Independent Fiscal Office

The Independent Fiscal Office (IFO) released a budget brief that updates the General Fund financial statement based on the FY 2026-27 enacted budget.  The brief updates the IFO estimate of the FY 2026-27 structural deficit to $5.03 billion, down from $5.56 billion. 

Stakeholder Meetings

The Department of Health’s Newborn Screening & Follow-Up Technical Advisory Board will hold a public meeting on July 23^rd from 10am-Noon.

The Medical Assistance Advisory Committee (MAAC) will hold its monthly meeting on July 23^rd at 10am. Register here. The MAAC Consumer Subcommittee will meet on July 22^nd at 1pm. Register here.

The Office of Mental Health and Substance Abuse Services (OMHSAS) will host its quarterly stakeholder webinar at 3pm on July 23^rd. Register here.

The Department of Health’s Special Pharmaceutical Benefits Program Advisory Council will hold a public meeting on July 30^th from 10am-Noon.

DOH’s HIV Community Prevention & Planning Committee will hold public meetings on August 19^th from 9-12pm & August 20^th from 9-2pm.

The Department of Health’s Infant Hearing Screening Advisory Committee will hold a public meeting on Thursday August 20^th from 10am- Noon. 

Federal Update

Click here for a review of this week’s federal activities.