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HHS Revokes Public Comment Requirement on Certain Policy Changes

Client Alert

The U.S. Department of Health and Human Services (HHS) has announced the immediate revocation of the longstanding Richardson Waiver, a policy requiring public notice and comment on certain agency decisions involving contracts, grants, benefits, property, and public loans. This move, detailed in a March 3 policy statement by HHS Secretary Robert F. Kennedy Jr., eliminates a key mechanism for stakeholder input on agency policy shifts.

Key Policy Changes

The elimination of the Richardson Waiver means that HHS will no longer be required to allow a 60-day public comment period before finalizing policy changes related to grants and benefits. As a result, HHS will now have the ability to implement new policies much more quickly, potentially impacting Medicaid and National Institutes of Health funding rules. This change eliminates opportunities for healthcare providers and other stakeholders to weigh in on crucial policy decisions – like implementing Medicaid work requirements – before they take effect. This change does not impact Medicare, which follows separate statutory public input rules and remains subject to different procedural requirements.

Industry groups have expressed concerns that eliminating public comment could lead to less transparency and hastily implemented policies that lack sufficient vetting. Without an opportunity for public review, new regulations may be more prone to unintended consequences, creating additional burdens for states, providers, and patients.

What This Means for Healthcare Providers

Healthcare providers and other stakeholders should prepare for more rapid and potentially unpredictable policy shifts from HHS. The absence of a formal comment process means that affected entities may need to explore alternative advocacy strategies to engage with policymakers.

We will continue to monitor developments and provide updates on any significant policy changes stemming from this decision. Please contact BMD Healthcare Member Daphne Kackloudis at dlkackloudis@bmdllc.com or Attorney Jordan Burdick at jaburdick@bmdllc.com with any questions about how this may impact your organization.


Don't Get Caught Dazed and Confused: Another Florida Court Weighs in on Employer Obligations to Accommodate Medical Marijuana Use

A Florida trial court ruled in Giambrone v. Hillsborough County that employers may need to accommodate off-duty medical marijuana use under the Florida Civil Rights Act (FCRA). This contrasts with prior rulings and raises new compliance challenges for employers. With the case on appeal, now is the time to review workplace drug policies.

Corporate Transparency Act to be Re-evaluated

Recent federal rulings have impacted the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. While reporting requirements were briefly reinstated, FinCEN has now paused enforcement and is reevaluating the CTA. Businesses are no longer required to submit reports until further guidance is issued. For updates and legal counsel, contact BMD Member Blake Gerney.

Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Ohio House Bill 58 proposes significant changes to recovery housing oversight, granting ADAMH Boards authority to inspect and investigate recovery residences. The bill also introduces a Certificate of Need (CON) program, requiring state approval for major facility changes. OMHAS will assess applications based on cost, quality, accessibility, and financial feasibility. The bill also establishes a recovery housing residence fund to support inspections. For more information, contact BMD attorneys Daphne Kackloudis or Jordan Burdick.

January 2025 Notice of Proposed Rulemaking Brings Notable Changes to HIPAA Security Rule

In January 2025, the U.S. Department of Health and Human Services proposed amendments to the HIPAA Security Rule, aiming to enhance cybersecurity for covered entities (CEs) and business associates (BAs). Key changes include mandatory compliance audits, workforce training, vulnerability scans, and risk assessments. Comments on the proposed rule are due by March 7, 2025.

Corporate Transparency Act Effective Again

The federal judiciary has issued multiple rulings on the enforceability of the Corporate Transparency Act (CTA), which took effect on January 1, 2024. Previously, enforcement was halted nationwide due to litigation in Smith v. U.S. Department of the Treasury. However, on February 18th, the court lifted the stay, reinstating the CTA’s reporting requirements. Non-exempt entities now have until March 21, 2025, to comply. Businesses should act promptly to avoid civil penalties of $591 per day and potential criminal liability.