CMS scraps financial incentives tied to hospital vaccine reporting

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HHS and CMS have eliminated a federal policy that tied hospital reimbursement to staff COVID-19 vaccination reporting, officials announced this week.

HHS Robert F. Kennedy Jr. said the incentive program — originally enacted under the Biden administration — was coercive and conflicted with principles of informed consent.

“Medical decisions should be made based on one thing: the wellbeing of the person — never on a financial bonus or a government mandate,” Mr. Kennedy said in an Aug. 1 statement. “Doctors deserve the freedom to use their training, follow the science, and speak the truth — without fear of punishment.”

The reporting policy was part of CMS’ inpatient payment rule and required hospitals to submit staff vaccination data through the CDC’s national healthcare safety network

CMS Administrator Mehmet Oz, MD, added that the change is meant to reinforce individual autonomy for clinicians.

“Doctors and other providers should have the same autonomy to choose what’s right for their own individual healthcare needs as the patients for whom they care,” Dr. Oz said. “Today’s announcement helps put that power back in their hands.”

HHS said the change is part of a broader initiative to eliminate financial and regulatory pressures that steer physicians toward standardized care models and away from individualized, evidence-based treatment plans.

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