From hospital staffing enforcement to pharmacy pricing and prior authorization reform, several healthcare-related laws are set to take effect July 1.
Here are four new rules and laws to know:
1. Federal student loan caps for PA and CRNA programs take effect. The Education Department on April 30 finalized the Reimagining and Improving Student Education rule, carrying out provisions from the Working Families Tax Cuts Act signed into law July 4, 2025. Most changes take effect July 1. The rule caps annual federal borrowing at $20,500 for graduate students and $50,000 for professional students. Under the rule’s framework, some healthcare fields — including physician assistants and certain advanced practice nursing pathways — are treated as graduate programs rather than professional programs, limiting annual federal loans for students in those programs to $20,500 beginning July 1. Industry organizations have said the classification changes could restrict access to education and worsen workforce shortages.
2. Washington begins penalizing hospitals for missed meal and rest breaks. Starting July 1, the Washington State Department of Labor and Industries will have the authority to issue penalties for hospitals that exceed the threshold for missed meal and rest periods as part of SB 5236, which was passed in 2023. The penalties range from $5,000 to $20,000, depending on the size of the hospital. Covered healthcare workers are required to have at least one break for a 4-hour shift, two for an 8-10-hour shift, and three for a 12-hour shift. Employees cannot work more than five hours without a meal period, according to the department.
3. Florida tightens PBM rules. Florida’s Drug Prices and Coverage Act, signed by Gov. Ron DeSantis on March 24, takes effect July 1. The law adds two new prohibited practices for pharmacy benefit managers: PBMs may not restrict a pharmacy or pharmacist from declining to dispense a drug if the reimbursement rate is less than the pharmacy’s actual acquisition cost, and may not reimburse a nonaffiliated pharmacy or pharmacist less than an affiliated pharmacy or pharmacist. The law also requires PBM contracts to allow pharmacies to submit consolidated administrative appeals representing multiple claims sharing the same drug, day supply and calendar month of service.
4. Iowa restricts AI use in prior authorization decisions. Iowa’s House File 2635, signed by Gov. Kim Reynolds on May 13, takes effect July 1. The law prohibits utilization review organizations from using an artificial intelligence-based algorithm or system as the sole basis for a decision to deny, delay or downgrade a prior authorization request based on medical necessity. It also prohibits health carriers from penalizing or reducing reimbursement for a health care provider based on that provider’s referral to, or affiliation with, an out-of-network provider, and bars carriers from enforcing or offering a contract amendment without providing the provider an opportunity for negotiation.
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