Weekly Roundup -
February 11, 2026
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Webinar Replay – 2027 ACA Considerations: Proposed NBPP and Other Key Changes and Trends
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Tending the Embers: Staying Ready for Medicare Advantage RADV Audits
The Centers for Medicare & Medicaid Services (CMS) issued a memo January 27, 2026, with updates on the agency’s approach to checking whether Medicare Advantage (MA) plans are being paid correctly. These reviews are conducted through Risk Adjustment Data Validation (RADV) audits, which help CMS confirm that the diagnoses MA plans report are supported by medical records.
The January 2026 memo signals that CMS intends to honor its commitment to strengthen oversight of MA payments, including accelerating and expanding the use of RADV audits and using AI (artificial intelligence) to streamline human coding reviews. MA organizations must now prepare to respond to the RADV audit notice within the required five-month window, while balancing their other risk-adjustment programs.
In this article, we explain the rapidly evolving landscape affecting RADV audits. Wakely, an HMA company, addresses what these changes mean for MA organizations and key considerations to ensure they are prepared for the upcoming enhancements to federal program integrity initiatives.
Overview of CMS’ RADV Refresh
CMS announced a major shift in May 2025: All MA plans will undergo RADV audits—not just a small sample as before. These audits look for cases in which diagnosis information submitted by a plan does not match the documentation in the patient’s medical record. When this happens, CMS may decide the plan was overpaid and require repayment. Historically, CMS audits have identified widespread diagnosis-code documentation errors, resulting in significant revenue recoupment from MA plans.
The 2025 announcement creates a framework for additional risk for MA plans, which could shift to risk-bearing provider groups. As we explained in an earlier article, key components of that announcement include:
- All MA plans will be audited starting with Payment Year (PY) 2018.
- CMS committed to accelerating audits by adding more staff and using new technology.
- CMS planned to use “extrapolation”—meaning if errors were found in a small sample of records, the error rate could be applied to the full population, which could lead to much larger repayment amounts.
- CMS also planned to eliminate the fee-for-service (FFS) adjuster—a policy that previously helped reduce the amount a plan would have to repay. This proposal would increase financial risk for plans.
Both the use of extrapolation and the removal of the FFS adjuster were later challenged in court.
Legal Challenge
In September 2023, Humana sued CMS in federal court, arguing that the 2023 RADV final rule, which allowed extrapolation and removed the FFS adjuster, was put into place without following proper federal rulemaking procedures. On September 25, 2025, the court agreed with Humana and vacated certain parts of this final rule, meaning certain parts of the rule are no longer in effect.
CMS appealed the ruling on November 1, 2025, which has created uncertainty about how RADV audits will work in future years.
Navigating the Legal and Regulatory Changes in Early 2026
The court did not say that extrapolation or elimination of the FFS adjuster is illegal—only that CMS did not follow the required process for changing the rules. Hence, the 2023 RADV final rule cannot take effect unless CMS wins its appeal or reissues the policy using the proper steps.
In its January 2026 Health Plan Management System (HPMS) memo, CMS stated that it will comply with the order while it is in effect.
The pending litigation does not diminish CMS’s broader commitment to increased audit activity and heightened scrutiny of MA risk-adjustment practices.
Effect of the Ruling. During RADV audits, CMS selects a sample of enrollees and requests corresponding medical records from the MA plan. These records are reviewed to confirm that the documented diagnoses meet CMS requirements. If unsupported diagnoses are found, CMS may recalculate payments and recover overpayments from the health plan. This audit process maintains program integrity and ensures accurate payments.
Plans that submit incomplete records could owe significant repayments to CMS.
CMS’s January 2026 memo clarifies how the agency plans to roll out additional RADV audits starting with PY 2020. CMS also addresses the agency’s plans to:
- Reduce burden on plans and providers, for example by extending the submission window
- Balance the volume of medical record submissions needing review by using smaller sample sizes where appropriate
- Use AI to further accelerate the review process
Preparing for What’s Next
Given CMS’s stated direction and the still unsettled litigation environment, MA plans should remain vigilant and audit ready.
Key steps include:
- Prioritizing timely and complete chart submission processes
- Strengthening internal criteria to identify and prioritize charts most likely to support diagnoses
- Improving documentation and coding accuracy through provider engagement
- Conducting proactive self‑audits to identify potential vulnerabilities
- Partnering with expert RADV consultants to navigate audit strategy, documentation, and submission readiness
Connect with Us
Wakely assists plans with their RADV initiatives and development of robust RADV playbooks. For more information about Wakely’s RADV playbooks, contact Debbie Conboy.
Federal Policy News
Fueled By Leavitt Partners Weekly Health Intelligence
HHS Funding Secured for FY 2026 as Attention Turns to FY 2027
On February 3, President Trump signed H.R. 7148, the Consolidated Appropriations Act, 2026 (Public Law 119-75) into law, enacting fiscal year (FY) 2026 appropriations for the Department of Health and Humans Services (HHS), as well as extenders for key Medicare, Medicaid, and public health programs and several reforms focused on pharmacy benefit managers (PBMs). The PBM changes, which had been under consideration by Congress for several years, will institute certain oversight and reporting measures for PBMs in Medicare Part D and the commercial health insurance market.
Except for funding for the Department of Homeland Security, which was extended through February 13, Congress has completed the FY 2026 appropriations process, and will now look to begin work on FY 2027 appropriations. Congressional appropriations leaders have indicated that they are working to schedule key hearings with agency leadership, tentatively slated to begin as soon as this month with markups anticipated in the House in May. Additionally, in the coming weeks, President Trump is expected to submit the FY 2027 budget request to Congress. As hearing and markup schedules develop, stakeholders should anticipate that there will be deadlines announced for submission of FY 2027 funding and policy priorities to appropriations committees in the coming weeks.
FDA Expands Flexibility for “No Artificial Colors” Labels
On February 5, US Food and Drug Administration (FDA) announced a shift in approach to relax how it enforces manufacturers’ use of “no artificial colors” labeling on food products. In a letter sent to industry, FDA provided notice of its intent to exercise enforcement discretion in voluntary labeling claims. This will allow food and beverage companies to have the flexibility to label products with “no artificial colors” as long as petroleum-based colors are not present. Previously, companies were only able to make this claim if their products did not include any added colors, including those derived from natural sources. According to FDA, this decision will “make it easier for companies to move away from petroleumbased synthetic colors and adopt safer, naturally derived alternatives.” The agency also noted that it approved two petitions: beetroot red was added, expanding the palette of allowable natural colors, and the food categories where spirulina extract can be used was expanded.
This work builds on previous actions by the Department of Health and Human Services and FDA encouraging companies to phase out petroleum-based colors, as articulated in the administration’s MAHA Strategy. FDA is also tracking voluntary commitments from food manufacturers that have agreed to limit the use of petroleum-based dyes.
White House Launches TrumpRx.gov Drug Pricing Platform
On February 5, the White House officially launched TrumpRx.gov, a website described by the administration as “giv[ing] Americans direct access to dramatically lower prices on dozens of common, high-cost brand-name prescription drugs.” According to a fact sheet accompanying the launch, the initial rollout of the platform featured “40 of the most popular and expensive branded medicines in the nation,” developed by the “first five manufacturers to reach [most-favored-nation (MFN)] pricing deals,” although the document indicated that the website would add additional products “in the coming months.”
As summarized by The Wall Street Journal, rather than serve as a marketplace for direct sales in and of itself, the platform “allows customers to search for specific medicines and purchase them through a manufacturer’s direct-to-consumer site, or in some cases gives users coupons that they can present at certain pharmacies.” The site’s launch received praise from some Republican policymakers, such as Representative Byron Donalds (R-FL), although recent reporting indicates that President Trump’s broader MFN initiative has “b[een] met with a skeptical eye from Republicans.” Congressional Democrats have broadly criticized the platform, which Senate Finance Committee Ranking Member Ron Wyden (D-OR) described as a “glorified coupon book.” At a high level, while the website’s supporters have framed it as a source of savings and simplified access for uninsured and underinsured Americans, the platform’s skeptics have criticized its narrow scope, its potential incompatibility with insurance benefit designs, and its promotion of certain drugs with low-cost generic competitors.
HHS Names Diana Diaz-Harrison National Autism Coordinator
On February 3, HHS announced the appointment of Diana Diaz-Harrison as National Autism Coordinator in a series of posts on X. The National Autism Coordinator leads the coordination of autism-related research, services, and supports across the HHS agencies and other federal partners. Ms. Diaz Harrison most recently worked as Principal Deputy Commissioner in the Administration on Disabilities, an agency under the Administration for Community Living (ACL), and previously served as Deputy Assistant Secretary in the Department of Education’s Office of Special Education and Rehabilitative Services. Prior to her federal service, Ms. Diaz-Harrison founded a network of autism-focused charter schools in Arizona, as well as an organization seeking to expand such charter schools for autistic children nationally. In comments to local Arizona press, Ms. Diaz-Harrison emphasized the sharp rise in autism prevalence over recent decades and stated the necessity of identifying the disorder’s causes—generally aligning with Secretary Kennedy’s stated objectives for autism policy and among several newly appointed members of the reconstituted Interagency Autism Coordinating Committee (IACC).
MACPAC Releases 2026 MACStats Medicaid, CHIP Data Book
This month the Medicaid and CHIP Payment and Access Commission (MACPAC) released the 2026 MACStats: Medicaid and CHIP Data Book, which includes Medicaid and Children’s Health Insurance Program (CHIP) data on eligibility and enrollment, benefits, service use, access to care, and state and federal spending. Total Medicaid spending grew 6.3 percent in fiscal 2024 to $957.4 billion. Total CHIP spending was $28.2 billion.
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Arizona
Arizona Lawsuit Challenges AHCCCS Over Autism Therapy Contract Changes. The Arizona Capital Times reported on February 9, 2026, that parents filed a new class action lawsuit against the Arizona Health Care Cost Containment System (AHCCCS), alleging it improperly approved provider network changes by Mercy Care and Centene/Arizona Complete Health that disrupted autism therapy services. The lawsuit follows an earlier case filed in December 2025 over the same contract terminations involving Centria Autism and Action Behavior Centers. Both cases stem from insurers ending contracts with these providers, forcing families to change applied behavioral analysis (ABA) services. In both lawsuits, plaintiffs are asking the court to pause the March contract terminations while the cases proceed.
Minnesota
Minnesota Announces Automated Medicaid Pre-Payment Review System. On February 6, the Minnesota Department of Human Services announced that it is advancing an automated Medicaid pre-payment review system in partnership with Optum to strengthen fraud prevention. The state expects to have the system fully implemented by the end of 2026. Optum reviewed nearly four years of claims across 14 high-risk service areas, with early testing identifying data and policy gaps, particularly in Early Intensive Developmental Behavioral Intervention services, though no fraud was confirmed. In its first 90 days, Optum established analytics processes, conducted 192 targeted reviews, and implemented quality control protocols. State officials say continued refinement over the next nine months will improve oversight, reduce fraud risk, and rebuild public trust.
South Dakota
South Dakota Governor Signs $402 Million RHTP Bill. As reported in Government Market News, South Dakota Governor Larry Rhoden has signed a $402 million bill (House Bill 1044) that will begin the process of implementing the federal Rural Health Transformation Program (RHTP), with approximately $189.4 million of the funds coming from the federal government. The state will work on modernizing healthcare delivery, developing a Data Atlas to act as a hub for electronic health records, and implementing an alternative payment model, among other priorities.
Virginia
Virginia Appoints Steve Ford as Medicaid Director. The Richmond-Times Dispatch reported on February 6, 2026, that Steve Ford has been appointed by Governor Abigail Spanberger to lead Virginia’s $24 billion Medicaid program, which serves nearly 2 million low-income, elderly, and disabled residents. Ford will serve as the director of the Department of Medical Assistance Services.
Washington
Washington Receives Federal Approval for Revised RHTP Budget. The Washington Health Care Authority (HCA) announced on February 10, 2026, that the U.S. Department of Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) have approved Washington’s revised budget for the federal Rural Health Transformation Program (RHTP). HCA worked in collaboration with the state Department of Health, Department of Social and Health Services, and the Governor’s Office to reduce the RHTP budget down from $200 million to $181 million, which was what HHS and CMS had allocated to Washington in the December 2025 Notice of Award, without eliminating any of the activities planned for the funds.
Private Market News
Fueled By Wakely Consulting Group
CMS Releases 2027 Proposed Notice of Benefit, Payment Parameters
On February 9, 2026, the Centers for Medicare & Medicaid Services (CMS) released the proposed Notice of Benefit and Payment Parameters (NBPP) for 2027, which includes several significant changes to federal and state-based Affordable Care Act (ACA) health insurance Marketplaces. The changes in the NBPP focus on addressing fraud, tightening broker and agent practices, increasing accountability, and removing federal barriers on plans. Key components of the proposal include:
- Allowing issuers to offer catastrophic plans with terms of up to 10 years
- Repealing standardized plan options and related requirement limits
- Permitting low-deductible plans with high maximum out-of-pocket limits, aligning affordability and coverage incentives
- Expanding hardship exemptions
- Permitting certain non-network plans to receive Qualified Health Plan certification
- Strengthening eligibility and income verification with enhanced enforcement policies
- Ensuring federal subsidies for Essential Health Benefits do not finance state-mandated benefits
- Modernizing network adequacy and provider access reviews
CMS will accept public comments on the proposed rule through March 11, 2026.
Aledade Expands Value-Based Care Network With 700 New Practices
Aledade added more than 700 primary care practices to its network for 2026, expanding to more than 3,000 organizations serving over 3 million patients in value-based care programs. The company’s growth aligns with continued federal support for accountable care models through the Centers for Medicare & Medicaid Services and the Medicare Shared Savings Program.
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Health Management Associates
Webinar Replay: Meeting the Healthcare Needs of Unhoused People Part 1: Service and Care Responses
In January 2026, HMA held the first in its two-part webinar series exploring how current events are impacting people experiencing homelessness and their access to care. This webinar highlighted the model of care for healthcare for the homeless clinics and medical respite care providers and how these services interact with broader systems of care. Additionally, we explored how the current environment is impacting delivery and financing of care for some of our most vulnerable neighbors.
Webinar Replay – Meeting the Healthcare Needs of Unhoused People Part 2: State Policy Responses
In the second of our two-part series exploring how current events are impacting people experiencing homelessness and their access to care, we focused on state responses to recent federal policy changes, such as the 2025 Budget Reconciliation Act (P.L. 119-21, OBBBA). These changes bring new considerations for retaining Medicaid coverage gains and section 1115 demonstration services that have been determined effective in the last decade. States will need to meet new requirements—but they also have options to reduce the negative impact on vulnerable populations and the healthcare providers that serve them. This webinar discussed state-level policy options, shared resources, and considered how to move forward in the current environment.
Wakely
Wakely Summary: Advance Notice of Methodological Changes for CY 2027 MA Capitation Rates and Part C and Part D Payment Policies
The Centers for Medicare & Medicaid Services (CMS) recently released the 2027 Advance Notice of Methodological Changes for Medicare Advantage Capitation Rates and Part C/D Payment Policies, which proposes important changes in plan payments, risk adjustment and other financial and regulatory requirements for 2027. Wakely summarizes key changes that will affect Medicare Advantage pricing for CY2027. This Advance Notice is more consequential than others in recent history, as the effective payment rate falls substantially below the averages seen in years past.
This paper has been written in partnership with Jonathan Blum, Co-Founder & Managing Partner at Health Transformation Strategies, LLC.
Webinar: Summary & Impacts of the 2027 Medicare Advantage Advance Notice
On February 12, 2026, join consultants from Wakely, an HMA company, for an overview of the proposed changes in the 2027 Advance Notice of Methodological Changes for Medicare Advantage Capitation Rates and Part C/D Payment Policies. Speakers will focus on the likely impact that the new rates and policies will have on Medicare Advantage bids, membership growth, quality and strategy. Speakers will also touch on the important items from the CY2027 Proposed Rule, released on November 25, 2025.
Webinar: CY2026 Trends in Medicare Advantage Part D Plan Benefits
On February 25, 2026, join the experts from Wakely, an HMA Company, for a data-driven discussion of the key Part D benefit trends shaping Medicare Advantage Part D plans in CY2026. The Inflation Reduction Act’s Part D benefit redesign commenced January 1, 2025, with Maximum Fair Price drugs introduced January 1, 2026. As benefit design becomes more uniform across Part D plans, this webinar explores how sponsors adjusted the Part D benefits of their plans to meet the requirements of the legislation, while still remaining competitive. We will review the CY2025->CY2026 movements of Part D benefits and formulary placement, in addition to exploring benefit & formulary differences between MAPD & PDP plans for CY2026.
Check Your ACA Risk Adjustment Data Validation (RADV) Engine Lights
Risk Adjustment Data Validation (RADV) audits are a critical component of the Affordable Care Act (ACA) Marketplace, ensuring accuracy of risk adjustment data submitted by health plans. These audits help verify validity and reliability of data used to calculate risk adjustment transfers. Operationalizing a RADV audit involves careful planning, resource allocation, and adherence to regulatory requirements. Through the Wakely National Risk Adjustment Reporting (WNRAR) project, we analyze RADV performance for about 80% of the Health Insurance Oversight System (HIOS) IDs in the market. We are sharing some of the key questions for health plans to ponder as they reflect on their recent initial RADV results.
RFP Calendar
RFP Calendar
| Date | State/Program | Event | Beneficiaries |
|---|---|---|---|
| Date: February 2026 | State/Program: Illinois | Event: Awards | Beneficiaries: 2,400,000 |
| Date: February 17, 2026 | State/Program: Nevada CO D-SNP | Event: Proposals Due | Beneficiaries: 88,000 |
| Date: February 19, 2026 | State/Program: Nevada Children's Specialty | Event: Awards | Beneficiaries: NA |
| Date: May 12, 2026 | State/Program: Nevada CO D-SNP | Event: Awards | Beneficiaries: 88,000 |
| Date: June 24, 2026 | State/Program: Wisconsin LTC GSR 3 | Event: Awards | Beneficiaries: 56,000 (all GSR) |
| Date: August 2026 | State/Program: Indiana | Event: RFP Release | Beneficiaries: 1,400,000 |
| Date: January 1, 2027 | State/Program: Illinois | Event: Implementation | Beneficiaries: 2,400,000 |
| Date: January 1, 2027 | State/Program: Nevada Children's Specialty | Event: Implementation | Beneficiaries: NA |
| Date: January 1, 2027 | State/Program: Nevada CO D-SNP | Event: Implementation | Beneficiaries: 88,000 |
| Date: January 1, 2027 | State/Program: Wisconsin LTC GSR 3 | Event: Implementation | Beneficiaries: 56,000 (all GSR) |
| Date: January 1, 2027 | State/Program: Illinois Tailored Care Management Program | Event: Implementation | Beneficiaries: 22,400 |
| Date: January 1, 2028 | State/Program: Wisconsin LTC GSR 4,6 | Event: Implementation | Beneficiaries: 56,000 (all GSR) |
| Date: Fall 2027 | State/Program: Oregon | Event: RFP Release | Beneficiaries: 1,200,000 |
| Date: 2028 | State/Program: North Carolina | Event: RFP Release | Beneficiaries: 2,200,000 |