Weekly Roundup -
May 13, 2026
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Unmatched Healthcare Insights from HMA,
Leavitt Partners & Wakely.
Featured:
The New Uninsured: State Policy Options for Californians Losing Medi-Cal Coverage
READ BRIEFValue-Based Payment Readiness Assessment Tool
READ MORETrending: In Focus
Turning Insight into Action: The New Operating Reality in Behavioral Health
Thousands of behavioral health leaders, clinicians, advocates, and industry partners convened during NatCon 2026, April 27–29 in Denver, CO—one of the sector’s largest annual gatherings. This year, the event was more focused and pragmatic than in recent years. Although behavioral health providers still face significant pressure, there was also a noticeable shift toward how organizations can move toward sustainable models for growth, technology adoption, and integrated care delivery.
Health Management Associates (HMA) colleagues attended the event to listen, connect, and contribute to the meaningful conversations. Many of the themes and industry trends we have been tracking emerged consistently throughout the conference. In this article, our behavioral health experts discuss their collective insights and the road ahead for behavioral health interest-holders.
Key Themes from NatCon 2026
Financial resilience remained at the forefront.
Behavioral health organizations continue to respond to constrained funding conditions, evolving reimbursement dynamics, and the need to diversify revenue beyond unstable and uncertain grant support and rate reimbursement volatility.
Operational visibility was closely tied to financial resilience.
Leaders discussed the need for a clearer, more real-time understanding of their performance. Performance was considered broadly to include financial indicators, clinical outcomes, and workforce capacity. Data and measurement have moved from a “nice to have” to “essential” for effective engagement with payers.
Innovation conversations are shifting toward implementation.
Artificial intelligence (AI) and digital tools were still hot topics, but the discussion has moved toward implementation and effective deployment. Conversations centered on practical use cases such as clinical documentation support, measurement-based care linked to improved health outcomes, and better integration with electronic health records (EHR).
This year’s conference highlighted enduring opportunities and challenges for the field, including:
- Core service priorities, such as crisis response, suicide prevention, collaborative care and increased opportunities around Certified Community Behavioral Health Clinics (CCHBCs), and value-based payment strategies for financial resilience
- Workforce sustainability, with organizations looking to reduce administrative burden, strengthen recruitment and retention, and support staff well-being while demand for services continues to rise
Behavioral Health Industry Trends
The industry trends emerging from NatCon 2026 suggest that behavioral health organizations are entering a more disciplined operating environment to maximize efficiencies and ensure long-term sustainability in what seems sometimes to be a chaotic environment. Organizations are placing greater emphasis on their Medicaid strategy, managed care contracting, and value-based arrangements that reward outcomes and continuity of care. There is also continued momentum behind integrated models that connect behavioral health with primary care, public health, and community-based supports. Rather than treating mental health and substance use services as isolated programs, providers are increasingly building coordinated systems that address whole-person needs across settings.
Another notable trend is that technology is becoming a clearer differentiator. Some organizations are piloting or scaling technology, while others are taking a more cautious approach. Discussions surrounding AI in particular appeared to have matured significantly, with attention moving from abstract concerns toward change management, sequencing of use cases, return on investment, governance, and clinician trust. In that sense, technology is moving from being a side initiative to a strategic differentiator.
Transformation in the Behavioral Health Field
We were struck by the level of alignment across different parts of the field. Many of the themes we heard reinforced what providers experience daily—the need to manage uncertainty while continuing to meet the growing demand for services and more intentional use of data, infrastructure, and outcomes measurement.
More broadly, the conversations throughout the conference pointed to a field that is moving toward greater pragmatism. There is still a clear need for additional resources, but there is also growing recognition that adaptability will serve an equally important role.
How We Can Help
One of the most valuable aspects of NatCon is the opportunity to compare experiences across organizations and regions. The themes emerging from this year’s conference reflect broader shifts happening across the behavioral health landscape.
A key role of our team is to connect what we hear in different settings and share it in a way that is useful for others in the field—highlighting emerging approaches, surfacing common challenges, and creating opportunities for peer exchange.
For questions about the market dynamics or approaches to strengthen your organization’s adaptability, contact one of our HMA experts.
Federal Policy News
Fueled By Leavitt Partners Weekly Health Intelligence
Hantavirus Response Raises Questions About U.S. Public Health Readiness
On May 8, the Centers for Disease Control and Prevention (CDC) issued a statement on the U.S. government’s response to the recent hantavirus outbreak on the M/V Hondius cruise ship, in which three people died and five others were known to be infected at the time. On May 10, the U.S. Department of Health and Human Services (HHS) released a subsequent statement that it is working to support the U.S. Department of State in the repatriation of American citizens from the M/V Hondius cruise ship affected by the Andes variant of hantavirus, in addition to CDC’s efforts to provide public health guidance and risk assessment.
In the statements, HHS states that the risk posed by the hantavirus to the American public is “extremely low,” as “transmission is rare and limited to close-contact settings.”
Since CDC and HHS’s formal statements, on May 11, HHS provided an update on social media stating that 17 Americans who were on the ship have since been transported to the University of Nebraska Medical Center/Nebraska Medicine Regional Emerging Special Pathogen Treatment Center (RESPTC) on a U.S. government medical repatriation flight, and then later announced that an 18th passenger, a dual U.S.-British citizen, had been transported to the Center. HHS noted that two of the passengers travelled in the plane’s biocontainment units out of an abundance of caution, as one passenger “currently has mild symptoms and another passenger tested mildly PCR positive for the Andes virus.” CDC also announced that two of the passengers have since been transported to Emory University’s RESPTC in Atlanta.
In the May 8 statement, and in several posts on social media, CDC notes additional actions taken to address the outbreak, including the development of health guidance for impacted American passengers and state health departments, as well as a Health Alert Network advisory to inform clinicians and health departments about the cluster. The agency has also deployed epidemiologists to the Canary Islands where the ship will dock to conduct a risk assessment.
Public health experts have expressed concern regarding the CDC’s timeliness in issuing official statements and guidance, as well as the ability of the U.S. government to respond to the outbreak, following the reductions in force impacting CDC and the termination of U.S. membership in the World Health Organization (WHO). Upon terminating the membership, the Trump Administration indicated it would continue to collaborate with other countries and selected health institutions through “direct, bilateral and results-driven partnerships” to advance global health security. In the statement regarding the hantavirus outbreak, CDC states that it is “continuing to work closely with international partners to develop consistent monitoring guidance,” but does not provide further details on which international partners the agency has communicated with. In an interview with CNN on May 9, Acting CDC Director Dr. Jay Bhattacharya stated that CDC has been “in touch with the WHO” and other international health organizations.
The agencies are also navigating the situation without permanent leadership. Since Dr. Susan Monarez was fired in August 2025 and several senior career officials also left, the CDC has been led by acting directors. The career officials that left when Dr. Monarez was fired were among the remaining senior leaders who had been involved in the agency’s response to COVID-19, including the repatriation and quarantine efforts. The Assistant Secretary for Preparedness and Response position is also still vacant. The White House nominated individuals for these positions in recent weeks, but Senate HELP Committee hearings have not yet been announced.
Administration Tests New Approach to Employer Fertility Coverage
On May 10, the Departments of Labor, HHS, and Treasury issued a proposed rule that would create a new category of limited excepted benefits, allowing employers to offer fertility benefits to employees outside the framework of ACA market reforms and certain other federal health coverage laws. The proposal, issued by the Department of Labor’s Employee Benefits Security Administration (EBSA), follows the February 2025 Executive Order, “Expanding Access to In Vitro Fertilization,” which directed the Assistant to the President for Domestic Policy to submit to the President policy recommendations “on protecting IVF access and aggressively reducing out-of-pocket and health plan costs for IVF treatment.” The proposed rule would allow employers to offer fertility benefits as a “limited excepted benefit,” to employees outside of non-excepted group health plans, similarly to coverage for vision and dental. The Administration states that the proposed benefit can include “not just IVF, but also diagnostics, counseling, medications, surgical treatments, and services addressing underlying causes of infertility,” so long as the benefits meet three requirements:
- Substantially all of the benefits must be for the diagnosis, mitigation, or treatment of infertility or related reproductive health conditions;
- Benefits would be capped at a combined lifetime maximum of up to $120,000 for the participant and their beneficiaries, indexed for inflation for plan years starting after 2028; and
- Employers would be required to provide a notice clearly describing the coverage and meeting other specified requirements.
The departments note that most workers of reproductive age receive health coverage through their employers, but the majority do not have “robust” fertility coverage. Acting Secretary of Labor Keith Sonderling and HHS Secretary Robert F. Kennedy, Jr. characterized the proposal as expanding access to fertility care and supporting family formation. Comments on the proposed rule are due 60 days after publication in the Federal Register.
The Administration highlighted the proposed rule, as well as several other initiatives, during a Mother’s Day event on May 10, which also included the launch of Moms.gov, a new government website intended to provide resources on fertility, pregnancy, and infant health for mothers.
FDA Finalizes Guidance on Postapproval Pregnancy Safety Studies
On May 8, FDA issued a final guidance for industry,“Postapproval Pregnancy Safety Studies,” aimed at improving the collection of safety data on already-approved drugs and biological products when used during pregnancy. This guidance finalizes FDA’s draft issued in May 2019, and provides recommendations for postapproval study designs to better assess product safety and pregnancy-related risks. It describes pregnancy-safe data collection methods, complementary studies, descriptive studies, and pregnancy registries, with the goal of generating information that can be incorporated into product labeling to support informed decision-making by patients and clinicians.
FDA Expands Internal AI Capabilities with Launch of ELSA 4.0
On May 6, FDA announced the launch of ELSA 4.0, an upgrade to the agency’s internal AI tool available to FDA staff and the completion of a data platform consolidation that integrates more than 40 application and submission data sources, systems, and portals across all FDA centers into a new platform called HALO (Harmonized AI & Lifecycle Operations for Data). According to the agency, Elsa is built within a FedRAMP High secure Google Cloud Platform environment, does not train on input data or any data submitted by regulated industry, and is not connected to the internet, though its enhanced search capability allows it to access refreshed secured data web; FDA also states that staff remain involved at every stage of the AI work process, with human subject matter experts verifying all inputs, analytic processes, and output implementation. FDA Commissioner Marty Makary and Chief AI Officer Jeremy Walsh characterized the announcement as a step to streamline agency operations and accelerate regulatory science, with Walsh noting that Elsa will become “the main entrée into the FDA’s systems and data.” FDA launched Elsa 1.0 in June 2025.
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Arkansas Submits 1115 ARHOME Renewal Request with Work Requirements
The Arkansas Department of Human Services (DHS) submitted on April 30, 2026, a request to renew its Section 1115 Arkansas Health and Opportunity for Me (ARHOME) demonstration through December 31, 2031, continuing Medicaid expansion coverage through Qualified Health Plans (QHPs) while adding several major policy changes. The renewal would add community engagement and work requirements for most non-exempt enrollees, requiring 80 hours per month of qualifying activity at application and redetermination. It also would expand Life360 HOMEs to Federally Qualified Health Centers (FQHCs) and other approved providers, raise the Medical Loss Ratio (MLR) to 85 percent, require QHPs to remit pharmacy rebates to the state, tax Advanced Cost Sharing Reduction payments as premiums, and update cost-sharing rules under federal law. Arkansas estimates enrollment could decline by about 20 percent. Public comments will be accepted through June 10.
Colorado Governor Signs Fiscal 2027 Budget with Medicaid Reductions to Close Deficit
Colorado Senate Democrats announced on May 11, 2026, that Governor Jared Polis signed Colorado’s $46.8 billion fiscal 2027 budget. The enacted budget includes a $270 million reduction to some Medicaid reimbursement rates and services to help the state close a $1.2 billion deficit. The budget limits reimbursements for family members that are caregivers for Medicaid recipients to 56 hours per week and reduces the Cover All Coloradans program. The budget keeps core Medicaid services, and the overall Medicaid budget increased by $468 million.
Georgia Releases Medicaid Fraud, Waste, and Abuse Solution RFI
The Georgia Department of Community Health (DCH) issued on May 11, 2026, a Request for Information (RFI) for a Medicaid fraud, waste, and abuse (FWA) detection and prevention solution across fee-for-service (FFS) and managed care. The state is seeking input on tools that use artificial intelligence, cloud-based analytics, and program integrity expertise to identify aberrant billing, support payment reviews, verify member residency and eligibility, strengthen pharmacy lock-in monitoring, and support investigations. The RFI may inform a future procurement and could include staff augmentation as Georgia prepares to expand managed care to aged, blind, and disabled (ABD) populations by 2028. Responses are due May 20.
Nevada Releases Medicaid PBM RFI
The Nevada Health Authority released on May 8, 2026, a request for information (RFI) seeking feedback on an upcoming procurement of a single pharmacy benefit manager (PBM) for Nevada Medicaid. The RFI aims to align the state with a bill enacted during the 2025 legislative session requiring the state to consolidate pharmacy benefit administration across fee-for-service (FFS) and managed care. The state is seeking responses on the requirements and expectations it should set for procurement and with future contactors. Responses are due May 29, 2026. The current FFS vendor is Magellan.
States Release RHTP Funding Opportunities
The Arkansas Department of Finance and Administration released on May 11, 2026, a notice of funding opportunity (NOFO) for the Telehealth, Health‑Monitoring, and Response Innovation for Vital Expansion (THRIVE) initiative of the state’s Rural Health Transformation Program (RHTP). The state is seeking qualified applicants to help modernize rural healthcare delivery by expanding access to telehealth services, strengthening emergency response systems and reducing response times, improving chronic disease and behavioral health outcomes, strengthening interoperability, and supporting data-driven care coordination. The state will issue awards based off four sub-initiatives, with up to $28.1 million available in year one for Linking Infrastructure for Emergency Lifesaving and Integrated Network Expansion; nearly $18.6 million for Health Outcomes through Monitoring & Engagement; $2 million for Virtual Innovation for Rural Telehealth, Utilization, Access, and Longevity; and $7 million for the TECH Fund (Telehealth, Equipment, and Connectivity Hub). Applications are due June 12, 2026. Meanwhile, the Nevada Health Authority released two requests for applications (RFAs) for funding opportunities to support initiatives of RHTP. The first opportunity is for the Rural Health Outcomes Accelerator Program initiative. Nevada is seeking qualified organizations to propose programs and initiatives that will improve chronic disease, primary care, behavioral health, and maternal and infant health, as well as reward providers for improved health outcomes. The second opportunity is for the Rural Health Innovation and Technology (RHIT) initiative. The state is seeking qualified applicants that have investment ideas that will enable providers to implement practical technology solutions that strengthen care delivery, matching providers’ actual needs and capacity, minimizing unnecessary complexity, and ensuring accountability. Applications for the RHOAP initiative are due June 26, 2026, and applications for RHIT funding are due July 6, 2026. Both RFAs will result in multiple awards totaling approximately $27 million for one year of funding in each initiative.
Private Market News
Fueled By Wakely Consulting Group
Oscar Health's Profit Hits $679M, Membership Rises in Q1
Oscar Health posted $4.6 billion in revenue in the first quarter of the year, up from the $3 billion revenue it reported in Q1 2025. Oscar posted a very strong first quarter, with profit and membership both rising sharply, suggesting its ACA-focused growth strategy is still working at scale.
Our Insights
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Health Management Associates
The New Uninsured: State Policy Options for Californians Losing Medi-Cal Coverage
HMA’s new report for the California Health Care Foundation explains how recent federal and state policy changes could cause up to two million Californians to lose Medi-Cal coverage. The report outlines practical short-term program paths California could use to preserve access to care while full-scope coverage is restored. It summarizes the policy and fiscal context, describes stakeholder-informed design goals, and presents two illustrative coverage alternatives with modeled cost ranges and key trade-offs in benefits, provider payment rates, cost sharing, and bridge-period design.
ACA Enrollment Declines: Implications and Options for State and Federal Policymakers
Recent and future policy changes are reshaping the Affordable Care Act (ACA) market. A recent Wakely report finds that only 86% of ACA enrollees nationwide paid their first premium at the start of the year, raising important questions about affordability, access, and market stability. Additionally, the 2027 Notice of Benefits and Payment Parameters (NBPP) is expected to be finalized this Spring which will have additional implications for consumers, issuers, and other stakeholders. On May 20, join HMA’s ACA team for a policy-focused conversation on what these projected changes mean for marketplace dynamics, including impacts to risk pools, premiums, and issuer participation. The session will explore emerging federal and state policy responses and offer insight into how today’s decisions may shape 2027 rates, plan offerings, and long-term market sustainability.
Webinar Replay: Saving Lives with Compassion: Overdose Response Training with RiVive®
This webinar presented findings from the 2025 RiVive Community Engagement Report and best practices in compassionate overdose response™, with a focus on the community use of RiVive naloxone nasal spray 3 mg. A panel of expert speakers presented their protocols for effective overdose intervention, guidance on the training of others, and strategies for integrating trauma-informed approaches into post-overdose care.
The webinar covered why compassionate dosing is important, how to integrate this concept into trainings for community members, and communication strategies for teaching titration, rescue breathing, and overdose prevention.
2026 Maryland State of Reform Health Policy Conference | May 21, 2026
The 2026 Maryland State of Reform Health Policy Conference will be taking place in-person on May 21st, 2026 at the Baltimore Marriott Waterfront! Managing constant change in healthcare takes more than just hard work. It takes a solid understanding of the legislative process and knowledge about intricacies of the healthcare system. That’s where State of Reform comes in.
Wakely
To LEAD or Not: Accountable Care Organizations Have A Decision To Make By May 17
LEAD (the Long-term Enhanced ACO Design) Model is the Centers for Medicare & Medicaid Innovation Center’s newest accountable care organization (ACO) payment model, running for 10 years from January 1, 2027, through December 31, 2036. ACOs have until May 17, 2026 to apply at https://app.innovation.cms.gov/LEAD/IDMLogin if they want to participate in the model. If you’d like to learn more about how LEAD will impact your organization, or have already applied, and want to learn how to best mitigate your risk profile in LEAD, contact one of our authors below and request a consultation and get more information here: https://www.wakely.com/value-based-payment-insights-for-providers/ .
Upcoming Webinar
ACA Enrollment Declines: Implications and Options for State and Federal Policymakers
Register HereRFP Calendar
RFP Calendar
| Date | State/Program | Event | Beneficiaries |
|---|---|---|---|
| Date: February 2026 - DELAYED | State/Program: Illinois | Event: Awards | Beneficiaries: 2,400,000 |
| Date: May 1, 2026 | State/Program: Nevada Children's Specialty | Event: Proposals Due | 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: Summer 2026 | State/Program: Illinois Foster Care | Event: RFP Release | Beneficiaries: 33,000 |
| Date: July 1, 2026 | State/Program: Hawaii Community Care Services | Event: Implementation | Beneficiaries: 5,500 |
| Date: July 28, 2026 | State/Program: Nevada Children's Specialty | Event: Awards | Beneficiaries: NA |
| 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 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: July 1, 2027 | State/Program: Nevada Children's Specialty | Event: Implementation | Beneficiaries: NA |
| 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 |
| Date: 2029 | State/Program: California | Event: RFP Release | Beneficiaries: NA |