We have updated the format of the Washington Update to give you a concise overview of key movements in health policy.

• The House Committee on Education & the Workforce unanimously advanced legislation to ban telehealth facility fees. The Transparent Telehealth Bills Act, would ban increased payments and separate payments for telehealth services provided under commercial health insurance plans for telehealth services by a provider located at a facility starting in 2026. However, with Congress primarily focused on the election cycle and must-pass priorities like the budget, this bill is unlikely to move this year at the federal level. That said, similar proposals to ban facility feeds are progressing at the state level. Read more here and here.

• The Biden administration released a much-awaited mental health parity final rule. The regulation implements updates to ensure mental health and addiction care are covered by insurers on par with physical care. The rule is intended to correct noncompliance with the Mental Health and Addiction Equity Act and prevent insurers from imposing more restrictive terms for mental health care. The rule is already facing significant industry pushback and will likely trigger legal scrutiny. The ERISA Industry Committee (ERIC), an association of employer-based insurance plans, has already indicated in a statement that it is considering litigation. Insurers are claiming the rule goes beyond Congressional intent, opening it up to Loper Bright based legal challenges. Read more here and here.

• Sen. Peter Welch (D-VT) recently introduced the 340B PATIENTS Act, a bill that would protect contract pharmacies under the 340B drug program. The bill would enshrine the right for contract pharmacies, regardless of location, to unconditionally access drug discounts and distribute drugs under in the 340B program and would impose penalties for manufacturers that place limits on these contract pharmacies. 340B bills, like many other health priorities, are unlikely to be seriously considered until after the November elections during the lame duck period.Read more here and here.