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Congress returned to Washington on July 13^th for its final extended legislative stretch before the August recess, with the House scheduled to remain in session for two weeks and the Senate for four. Since returning, lawmakers have moved quickly on several healthcare priorities, although the prospects for major legislation remain uncertain as both parties increasingly look toward the 2026 midterm elections. For now, Congress appears more likely to advance narrower healthcare measures than major structural reforms. However, the current debates over affordability, prior authorization, fraud enforcement and government-sponsored coverage are beginning to shape the healthcare agendas both parties will carry into the midterms and the next presidential election. Republicans have continued to emphasize healthcare fraud, waste and abuse as a central policy theme. House Budget Committee Chair Jodey Arrington (R-TX) and several Republican colleagues introduced legislation that would provide an additional $7 billion to the Health Care Fraud and Abuse Control Program, which supports federal healthcare fraud investigations and prevention activities. That focus has also shaped debate over the existing Wasteful and Inappropriate Service Reduction, or WISeR, model. The six-year Medicare demonstration expands prior authorization for certain services considered at high risk for fraud, waste and abuse. Senate Republicans recently blocked an effort to terminate the model, arguing that it could prevent improper payments before they occur. Democrats and provider groups have raised concerns that the program could delay medically necessary care. CMS maintains that final coverage decisions are being made by physicians rather than artificial intelligence but the debate is likely to continue. Both chambers have also advanced legislation addressing healthcare prices and prior authorization. The House Energy and Commerce Committee approved a bipartisan package that would expand hospital and insurer price transparency requirements while also increasing oversight of prior authorization. The House Ways and Means Committee unanimously advanced the Improving Seniors’ Timely Access to Care Act, which would establish electronic and standardized prior authorization processes in Medicare Advantage. The legislation has attracted nearly 300 bipartisan House cosponsors, reflecting broad congressional interest in reducing delays and administrative burdens associated with prior authorization. Notably, the bill has a provision that eliminates retroactive denials (a denial after a claim has already been approved through prior authorization) – a policy that AHPA has long advocated for. Lawmakers have also considered changes to Schedule H form (currently used for community benefit reporting), including expanded reporting on financial assistance policies and 340B program activities. The bill requires not-for-profit hospitals with more than $100 million in net patient revenue to report advertising and marketing costs, the numbers of completed financial assistance applications received, granted, and denied during the taxable year, a description of each health service line of the organization, the amount of gross receipts generated by each service line, as well as any costs associated. Large organizations would also be required to report the amount of spending on quality improvement, nonclinical programming, and spending on the three highest priority health needs identified through the Community Health Needs Assessment (CHNA). To view all the requirements associated with this bill, click here. Despite this activity, major healthcare legislation may be difficult to complete before the election. Republican leaders are discussing the possibility of another budget reconciliation package, but no specific healthcare provisions have emerged. The House budget resolution currently under consideration doesn’t include instructions for the committees with primary healthcare jurisdiction. Both parties are beginning to define their healthcare messages for the midterms and beyond. Republicans are expected to focus on fraud prevention, transparency, domestic medical manufacturing and targeted reforms to Medicare Advantage rather than broad restructuring. There is also continued interest in biomedical innovation. Democrats are expected to center their midterm message on healthcare affordability, including opposition to the Medicaid reductions enacted through the One Big Beautiful Bill Act (OBBBA) and the expiration of the enhanced Affordable Care Act premium tax credits.