Under the policy change, the Richardson waiver would be removed “effective immediately,” according to a March 3 policy statement from HHS Secretary Robert F. Kennedy Jr. The waiver, established in 1971, requires HHS to follow public notice and comment on procedures for contracts, benefits, grants, property and public loans. HHS agencies usually invite public comment for a period of 60 days prior to a final decision on a proposed rule.
“The extra-statutory obligations of the Richardson waiver impose costs on the Department and the public, are contrary to the efficient operation of the Department, and impede the Department’s flexibility to adapt quickly to legal and policy mandates,” Mr. Kennedy said.
HHS agencies can now move forward with many grants and benefits policy changes without public input.
“It’s hugely important, because getting rid of the Richardson Waiver means that the agency can move a lot faster to implement big new policy changes,” Samuel Bagenstos, a professor of law at Ann Arbor-based University of Michigan, told CBS News. “Courts have held HHS to that waiver, so it’s not just something they could ignore. If you think about HHS, it’s a $1.7 trillion department. The overwhelming majority of what it does is grants and benefits.”
For example, skipping public comment could allow HHS to impose work requirements more easily on Medicaid recipients or redesign NIH funding rules, CBS News reported. However, it does not affect Medicare, which has separate public input legal rules.
“America’s Essential Hospitals is concerned that the elimination of public comment, particularly for Medicaid policies, will not only reduce transparency but also lead to weaker, error-filled regulations that have not been fully vetted,” a spokesperson for the organization said in a March 3 statement shared with Becker’s. “In addition, the rapid implementation of policy changes would give states, providers and beneficiaries insufficient time to properly prepare for implementation.”
A spokesperson for the American Hospital Association told Becker’s they are reviewing the policy change and do not have a comment at this time.
Becker’s also reached out to the American Medical Association and will update this story should more information become available.
Three more federal updates to know:
1. Tom Corry, the assistant secretary of public affairs for HHS, resigned from his position Feb. 28, effective immediately. Mr. Corry did not list a reason for his exit. “To my colleagues at HHS, I wish you the best and great success,” Mr. Corry said in a March 3 LinkedIn post.
Mr. Corry served in the role for three months, according to his LinkedIn page. He also served as senior adviser and director of communications for CMS during President Donald Trump’s first term.
2. Francis Collins, MD, PhD, former director of the National Institutes of Health, retired Feb. 28 after more than three decades with the department, NPR reported March 1. Dr. Collins did not list a reason for his exit. He joined NIH in 1993, and led the agency from 2009 to 2021 when he stepped down as director but continued to conduct research at his lab.
Dr. Collins’ retirement comes amid pushback as the Trump administration aims to implement a policy that would largely cut federal grant funding for nationwide medical research projects. The NIH posted a Feb. 7 memo that shared plans to cap reimbursement for indirect research institution costs at 15%, down from a 27% to 28% average that the department has received for years. The Trump administration anticipated more than $4 billion in federal cost cuts annually as part of the move.
3. President Donald Trump’s 25% tariffs on Canada and Mexico imports are set to take effect March 4, with a 10% additional tariff on Chinese imports. President Trump has cited drug trafficking concerns as a reason for the tariffs.
“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed tariffs scheduled to go into effect on March 4 will, indeed, go into effect, as scheduled,” he said in a Feb. 27 Truth Social post.
The tariffs levied against Canada and Mexico were initially delayed for 30 days after negotiations but will now move forward as planned. The total tariffs on China, which already have a 10% tariff on U.S. exports, will rise to 20% on March 4. On April 2, reciprocal tariffs on major trading partners are also set to begin.