Happy Monday! Washington returned this week with a familiar mix of deadline-driven governing, health affordability pressure, and regulatory scrutiny across the healthcare system. Lawmakers moved quickly to avert a shutdown but left major health policy questions unresolved, while states and industry players continue to absorb the downstream effects hookup federal decisions. Here is what we are tracking:

In this week’s Nimitz Health:

• Federal News: Appropriations deal, ACA subsidy talks collapse, TrumpRx launch, and pediatric and rare disease policy wins

• State News: South Carolina measles outbreak and mental health funding fights in Idaho and Maryland

• Industry News: Weight-loss drug price competition, Hims and Hers under fire,, and drug supply chain and PBM reform dynamics

WHO’S HAVING EVENTS THIS WEEK?

Wednesday, February 11th

• *House Energy & Commerce: “Lowering Health Care Costs for All Americans: An Examination of the Prescription Drug Supply Chain” at 10:15am. Watch here.

• *Senate Aging: “The Doctor Is Out: How Washington’s Rules Drove Physicians Out of Medicine” at 3:30pm. Watch here.

*Will be covered by Nimitz Health. Please email [email protected] if you would like a readout of any other hearings.

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NEWS DRIVING THE WEEK

Federal News

Congress moved Tuesday to end the government shutdown, approving a roughly $1.2 trillion funding package that keeps most federal agencies operating through September. The deal, however, only extends Department of Homeland Security funding through Feb. 13, setting up another near-term cliff that is expected to drive renewed fights over immigration enforcement, border security, and agency authorities.

Efforts to revive the Affordable Care Act’s enhanced premium subsidies have largely collapsed, with negotiators privately acknowledging that talks are unlikely to resume this year. The lapse leaves millions of consumers exposed to higher premiums and out-of-pocket costs, raising affordability concerns as policymakers shift focus to other fiscal and political priorities.

The Trump administration also launched TrumpRx, a new federal drug-purchasing website offering discounts on roughly 40 medications. The White House framed the platform as an immediate response to high drug prices, though early analysis suggests questions remain about uptake, supply-chain integration, and how the site will interact with existing coverage and reimbursement structures.

On Capitol Hill, House Energy and Commerce leaders highlighted enactment of the Mikaela Naylon Give Kids a Chance Act, which was folded into the Consolidated Appropriations Act of 2026. The law reauthorizes the Rare Pediatric Disease Priority Review Voucher program through FY29 and expands FDA authority related to pediatric cancer trials and enforcement under the Pediatric Research Equity Act, reinforcing bipartisan interest in rare disease and pediatric drug development.

State News

South Carolina public health officials reported that the state’s measles outbreak has surged to 920 confirmed cases, with transmission concentrated in the Greenville and Spartanburg areas. While vaccination rates have increased sharply in recent weeks, officials warn the outbreak could continue for months, sustaining pressure on local health systems, schools, and public health resources.

Mental health funding is emerging as a flashpoint at the state level. In Idaho, proposed budget cuts threaten mental health court programs that judges and advocates credit with lowering recidivism and suicide risk among high-need populations. Court officials warn that without legislative action, programs could be scaled back or eliminated despite evidence that they reduce long-term costs. Read more here.

Maryland advocates are similarly mobilizing to protect funding for community-based mental health services after the governor’s proposed FY27 budget reduced support for coordinated care programs, particularly those serving children and adolescents. Providers argue the cuts come amid rising demand driven by inflation, job insecurity, and persistent post-pandemic mental health challenges.

Industry News

Pharmaceutical manufacturers are facing mounting pressure as price competition intensifies in the weight-loss drug market. Analysts warn that aggressive discounting and the emergence of lower-cost alternatives could disrupt blockbuster pricing models, forcing companies to rethink commercialization strategies for GLP-1 therapies.

Federal scrutiny of digital health and telehealth companies is also increasing. HHS recently referred Hims and Hers to the Department of Justice following its rollout of a weight-loss pill offering, signaling heightened enforcement risk for companies operating at the intersection of prescribing, marketing, and direct-to-consumer health platforms.

Meanwhile, policymakers continue to explore reforms to the drug supply chain and pharmacy benefit manager practices, though industry stakeholders caution that many of the proposed changes may have limited immediate impact on what consumers actually pay at the pharmacy counter. The disconnect between legislative action and consumer experience remains a central concern for manufacturers, payers, and patient advocates alike.

FOR FUN

Valentine’s Day is this Saturday. Order your gifts and make your reservations now if you haven’t already. You will thank me later!

Alternatively, here are some events for all you singles out there.

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