August 2025 Federal & State Policy Updates in Healthcare

by | Sep 1, 2025

Federal Updates

CONNECT for Health Act of 2025 (H.R. 4206)

Representative Mike Thompson (D-CA) recently introduced the bipartisan CONNECT for Health Act of 2025 (H.R. 4206). This bill aims to permanently extend the telehealth flexibilities, which expire on September 30, 2025.

Key provisions in the bill that will impact healthcare systems and providers include:

  • Permanent Removal of Geographic Restrictions (§101): Patients will have the ability to access telehealth services from any location, ending the previous limitations to rural or underserved areas.
  • Expanded Telehealth Provider Eligibility (§103): A wider range of healthcare professionals will be allowed to provide telehealth services, enhancing access to care.
  • Permanent Telehealth Authorization for FQHCs and RHCs (§104): Federally Qualified Health Centers (FQHCs) and Rural Health Clinics (RHCs) will continue to be able to offer and receive reimbursement for telehealth services.

Protect Medicaid and Rural Hospitals Act (S. 2279)

Senator Josh Hawley (R-MO) introduced the Protect Medicaid and Rural Hospitals Act (S. 2279). This bill intends to reverse recent Medicaid funding cuts and better support rural healthcare systems.

Here are the three major provisions of the bill:

  • Lifting Provider Tax Limits: This provision repeals the restrictions imposed by the OBBBA on provider taxes, enabling states to utilize these taxes to secure federal Medicaid funding for hospitals and providers.
  • Restoring State Flexibility in Medicaid Payments: By reversing OBBBA-imposed limitations, states will regain the ability to direct Medicaid payments, thereby allowing stronger reimbursement rates for healthcare providers.
  • Expanding and Extending Rural Hospital Support: The Rural Health Transformation Fund would see its budget double from $50 billion to $100 billion, with an extension of its duration from 5 years to 10 years, providing sustained investment in rural healthcare.

 

State Updates

California – Certified Registered Nurse Anesthetists (CRNAs)

Assembly Bill 876 (AB 876) is currently under review in California. This bill seeks to clarify that Certified Registered Nurse Anesthetists (CRNAs) are permitted to administer anesthesia independently, contingent upon orders from a physician or dentist, without the need for prescribing authority or additional supervision. The bill is presently pending in the Senate Appropriations Committee. With the California Legislature set to adjourn on September 12, 2025, it is uncertain whether the bill will pass before this deadline.

 

Looking Ahead

These proposals—at both federal and state levels—highlight ongoing efforts to expand telehealth, protect Medicaid funding, and modernize provider roles. We’ll continue tracking developments and provide timely updates as these bills progress.

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About the Author: Verisys

Verisys empowers healthcare organizations with real-time, verified data solutions for compliance, credentialing, and risk mitigation. Our advanced tools ensure patient safety, streamline hiring, manage payment integrity, and enhance clinical compliance.
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