POCP Blog

Federal-State Policy Cycle: Understanding Connections Shaping Healthcare

Written by Melissa Bundy | Jul 1, 2026 3:43:38 PM

When a major federal healthcare rule is released, it's often treated as the beginning of implementation planning.

Teams review requirements. Technology roadmaps are updated. Compliance deadlines become the focus.

But understanding healthcare policy requires a much broader view.

As we explored during our recent webinar, The Federal-State Policy Cycle and Its Impact on Healthcare Organizations, healthcare policy isn't a series of isolated federal or state actions. It's an interconnected process where federal agencies, state legislatures, regulatory boards, governors, standards organizations, and industry stakeholders continually influence one another. Sometimes federal policy establishes a framework that states expand upon. Other times, states pioneer new approaches that influence broader national conversations.

Healthcare organizations don't operate within a single level of government. They operate within the combined effect of both.

Watch the full webinar below.

The challenge isn't understanding one policy. It's understanding how they connect.

The relationship between federal and state policy isn't new.

What has changed is the volume of information organizations must monitor and interpret.

Federal legislation, state legislative sessions, regulations, agency guidance, board actions, executive orders, standards development, public comment periods, industry announcements, and implementation guidance all contribute to the policy landscape. Each development may affect compliance, technology investments, product strategy, or operations.

Understanding what's happening is only part of the challenge.

Organizations also need to understand why it's happening, how one policy influences another, and where those patterns may lead next.

Throughout the webinar, our speakers explored several examples that demonstrate why taking a broader view of policy leads to better strategic decision-making.

Advanced pharmacy practice shows how policy can reshape care delivery

One of the strongest examples is advanced pharmacy practice.

The COVID-19 pandemic didn't create pharmacists' clinical capabilities. It demonstrated them at scale.

Temporary authorities allowing pharmacists to administer vaccines, conduct testing, and provide additional clinical services gave states firsthand experience with expanding pharmacists' roles in care delivery. Many states have since made those authorities permanent while continuing to explore additional scope-of-practice changes.

 

Read the NCPDP Foundation-funded whitepaper we collaborated with Summit Health Advisors “A Business Model Framework to Scale Pharmacy-Delivered Clinical Services

 

Today, pharmacists' authority varies significantly from state to state. Prescriptive authority, collaborative practice agreements, standing orders, chronic disease management, vaccination authority, and reimbursement models all differ depending on where care is delivered.

That creates complexity for organizations operating across multiple states, but it also creates opportunity.

As states continue experimenting with new models, healthcare organizations have an opportunity to rethink how pharmacists contribute to care delivery, address workforce shortages, improve access to care, and support value-based care initiatives. State policy is also helping generate the evidence needed to inform future reimbursement models and broader healthcare transformation.

Organizations monitoring these developments aren't simply preparing for compliance. They're gaining insight into where the market may be heading.

Organizations that rely solely on final rules often find themselves reacting to change. By the time a regulation is finalized, product roadmaps, budgets, staffing plans, and implementation strategies may already need adjustment. The advantage comes from recognizing signals early and understanding where policy discussions are headed before formal requirements are issued.

 

Prior authorization demonstrates why compliance should support strategy

Electronic prior authorization tells a different story.

CMS-0057 has driven significant investment in FHIR infrastructure across the healthcare industry. Organizations have devoted considerable resources to preparing for implementation and modernizing their interoperability capabilities.

At the same time, states continue refining prior authorization policy through legislation governing turnaround times, transparency, documentation requirements, electronic submission, gold carding, and other operational requirements.

With the proposed CMS-0062 rule focused on electronic drug prior authorization, another round of policy activity is expected as states evaluate how they may respond.

Looking at each development independently can make compliance feel like a never-ending series of projects.

Looking at them together creates a different opportunity.

Organizations can begin asking how today's compliance investments might support tomorrow's initiatives, reducing duplication, improving operational efficiency, and building technology capabilities that extend well beyond a single regulatory deadline.

A health plan preparing for CMS-0057 may focus entirely on federal API requirements. However, state-level legislation governing turnaround times, electronic submission requirements, transparency mandates and gold-carding programs can introduce additional operational and technology changes.

Artificial intelligence reminds us that innovation doesn't always start at the federal level

Artificial intelligence illustrates another important aspect of the policy process.

Unlike interoperability or prior authorization, where federal policy has often established a common framework, many states have moved quickly to address AI transparency, accountability, and oversight while broader federal policy continues to evolve.

Those state actions aren't occurring in isolation. They contribute to the broader conversation about responsible AI and offer valuable insight into the issues policymakers across the country are attempting to address.

For organizations developing or deploying AI-enabled technologies, monitoring state activity provides more than compliance awareness. It offers an early view of emerging expectations that may influence future national policy and industry best practices.

Compliance is only the beginning

One recurring theme throughout the webinar was that organizations shouldn't treat compliance as the finish line.

Every organization must dedicate resources to understanding and implementing new regulatory requirements. The greater opportunity lies in using that work to support broader strategic goals.

Questions worth asking include:

    • Can the capabilities we're building for one regulation support future initiatives?
    • Which policy trends align with our long-term business strategy?
    • Where are opportunities to standardize technology or operational processes?
    • What investments will continue creating value after compliance deadlines have passed?

Organizations that connect policy monitoring with strategic planning are often better positioned to make informed investment decisions, anticipate market shifts, and respond more effectively as healthcare continues to evolve.

Turning policy intelligence into action

Healthcare policy will continue to evolve through the interaction of federal agencies, states, standards organizations, industry stakeholders, and healthcare leaders.

The organizations that thrive won't necessarily be the ones that monitor the most information. They'll be the ones that understand how those developments fit together and what they mean for their business.

That's where Point-of-Care Partners helps.

Our Regulatory Resource Center subscription solutions provide curated, quality-controlled monitoring of federal and state policy, helping organizations cut through the noise and stay informed about the developments that matter most.

Subscribers to POCP's Regulatory Resource Center services such as Pharmacists Advance Practice, Prior Authorization Navigator and our other services receive:

    • Curated monitoring of federal and state policy developments across all 50 states + the District of Columbia and Puerto Rico
    • Early identification of emerging trends before they become compliance requirements
    • Expert interpretation from consultants actively involved in interoperability, prior authorization, pharmacy, and standards initiatives
    • Alerts and intelligence that help teams make proactive investment and product decisions

For organizations looking beyond policy monitoring, our consulting team helps assess organizational readiness, identify capability gaps, develop implementation roadmaps, and build practical strategies that leverage compliance efforts to support broader business objectives. Whether you're planning for interoperability, prior authorization, advanced pharmacy practice, AI governance, or another emerging area, we help clients connect policy insights to meaningful action.

Because understanding healthcare policy isn't just about keeping up. It's about using policy intelligence to make smarter decisions, strengthen compliance planning, and uncover new opportunities for strategic advantage.

Contact us to schedule a discovery call. We want to hear what your organization is working on, how you're tracking state policy developments, where you're planning for compliance, and how you can maximize the strategic benefit of the work already underway.