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09/15/2025

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Rural Health Transformation (RHT) Program
Transforming Rural Healthcare in America 

The Rural Health Transformation (RHT) Program was authorized by the One Big Beautiful Bill Act (Section 71401 of Public Law 119-21) and empowers states to strengthen rural communities across America by improving healthcare access, quality, and outcomes by transforming the healthcare delivery ecosystem. Through innovative system-wide change, the RHT Program invests in the rural healthcare delivery ecosystem for future generations.

Additional information on how to apply for RHT Program funding will be released via a Notice of Funding Opportunity (NOFO), and funding will be distributed in the form of a cooperative agreement. 

Strategic Goals
The RHT Program seeks to further the following Strategic Goals: 

  • Make rural America healthy again: Support rural health innovations and new access points to promote preventative health and address root causes of diseases. Projects will use evidence-based, outcomes-driven interventions to improve disease prevention, chronic disease management, behavioral health, and prenatal care.
  • Sustainable access: Help rural providers become long-term access points for care by improving efficiency and sustainability. With RHT Program support, rural facilities work together—or with high-quality regional systems—to share or coordinate operations, technology, primary and specialty care, and emergency services.
  • Workforce development: Attract and retain a high-skilled health care workforce by strengthening recruitment and retention of healthcare providers in rural communities. Help rural providers practice at the top of their license and develop a broader set of providers to serve a rural community’s needs, such as community health workers, pharmacists, and individuals trained to help patients navigate the healthcare system. 
  • Innovative care: Spark the growth of innovative care models to improve health outcomes, coordinate care, and promote flexible care arrangements. Develop and implement payment mechanisms incentivizing providers or Accountable Care Organizations (ACOs) to reduce health care costs, improve quality of care, and shift care to lower cost settings.
  • Tech innovation: Foster use of innovative technologies that promote efficient care delivery, data security, and access to digital health tools by rural facilities, providers, and patients. Projects support access to remote care, improve data sharing, strengthen cybersecurity, and invest in emerging technologies. 

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HHS Drives Reform to Restore Patient-Centered Care, Announces Request for Nominations of Members to Serve on Federal Healthcare Advisory Committee
The U.S. Department of Health and Human Services (HHS) and Centers for Medicare & Medicaid Services (CMS) are establishing the Healthcare Advisory Committee—a group of experts charged with delivering strategic recommendations directly to HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Dr. Mehmet Oz to improve how care is financed and delivered across Medicare, Medicaid and the Children's Health Insurance Program (CHIP), and the Health Insurance Marketplace.

"Every American high-quality, affordable care – without red tape, corporate greed, or excessive costs," said HHS Secretary Robert F. Kennedy Jr. "This new advisory committee will unite the best minds in healthcare to help us deliver real results, hold the system accountable, and drive forward our mission to Make America Healthy Again."

"This is a moment for action," said CMS Administrator Oz. "This committee will help us cut waste, reduce paperwork, expand preventive care, and modernize CMS programs with real-time data and accountability, all while keeping patients at the center. We are calling on experts across the country to join us in this effort to help us Make America Healthy Again."

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CMS Announces Changes to Achieving Healthcare Efficiency through Accountable Design (AHEAD) Model to Improve Quality, Promote Transparency, and Decrease Costs

What’s new: The CMS Innovation Center announced new policy and operational changes, as well as a new end date, to the Achieving Healthcare Efficiency through Accountable Design (AHEAD) Model to help states achieve their total cost of care (TCOC) targets, while advancing the Center’s commitment to promote choice and competition, increase prevention, empower patients, and protect taxpayer dollars.

Why it matters: Participating states now have more tools to manage Medicare costs (designed to support sustainable growth) and improve quality of care and population health outcomes.

What to expect: Changes will be implemented across all cohorts beginning in January 2026. AHEAD’s end date for all cohorts is now December 31, 2035.

The big picture: Changes made to the model will help to advance the CMS Innovation Center’s strategic pillars of: 1) choice and competition, with states implementing at least two policies focused on promoting choice and competition in their health care markets and 2) prevention, with a new Population Health Accountability Plan focused on preventive care, including chronic disease prevention.

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HHS Expands Access to Affordable Health Insurance
The U.S. Department of Health and Human Services (HHS) announced today it is implementing important measures to expand access to more affordable catastrophic health coverage through HHS’ new hardship exemption guidance. This guidance streamlines access to more affordable catastrophic coverage for consumers who are ineligible for advance payments of the premium tax credit (APTC) or cost-sharing reductions (CSRs).

Through these efforts, more Americans will be able to qualify for catastrophic health coverage based on need, beginning November 1st with the start of open enrollment. Catastrophic plans generally have lower monthly premiums, are designed to protect consumers from very high medical costs in the event of serious illness or injury, and are required to cover three primary care visits pre-deductible. Consumers under the age of 30 have always been eligible for catastrophic plans through HealthCare.gov.

“Catastrophic coverage offers affordable health insurance for younger Americans and those facing hardship to have security when they need it most,” Secretary of Health and Human Services Robert F. Kennedy, Jr. said. “Expanding access to catastrophic coverage is another step in making health insurance more affordable, building on the progress made since the passage of President Trump’s One Big Beautiful Bill.”

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Model Participants Drive Value-Based Cancer Care
What’s new: First reconciliation results for the CMS Innovation Center’s Enhancing Oncology Model (EOM) showed cost savings for more than three quarters of participants; more than half were also rewarded for quality of care.

Why it matters: EOM – informed by lessons learned from its predecessor, the Oncology Care Model – is showing great promise for achieving major cost savings and improved quality of care for cancer patients: of the 43 participants evaluated in the model’s first performance period, 79% achieved savings relative to historical spending and more than half earned the highest performance bonus for quality.

What to expect: In July 2025, the model welcomed its second cohort of participants who will help shape the future of cancer care; the cohort includes seven new oncology physician group practices for a combined total of 3,000 practitioners committed to value-based, patient-centered oncology care at 500 sites across 33 states and Washington, D.C.

The big picture: EOM supports the Innovation Center’s strategic priority of patient empowerment by putting the patient at the center of the care team, as well as protecting federal taxpayers by refining incentives to achieve smarter spending for high-quality care.

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