Washington Doubles Down on Digital: What New Federal Policy Means for Healthcare Data

The new administration has made one thing clear: the digital transformation of healthcare is no longer optional. In late July of 2025, federal leaders at the White House, CMS, and ONC outlined bold plans to accelerate interoperability, expand clinical data use, and build the infrastructure for a digital-first healthcare system.

The Two Pillars of Change for Healthcare Data

Federal priorities are centering on two areas:

  1. Digital enablement that makes healthcare part of the app economy.
  2. CMS-affiliated networks that deliver trusted, modern interoperability.

Together, these efforts move healthcare toward real-time, secure, and scalable data exchange.

Digital Enablement of Healthcare

The adoption of modern authentication standards (IAL2 and AAL2) will remove old barriers to releasing patient data. Providers will have confidence in patient identity, making privacy-based objections less credible.

Other critical steps include:

  • A FHIR-based National Provider Directory to easily locate endpoints.
  • Oversight shifting from EHR features to API performance.

The result is an ecosystem where patients can reliably access and share their health information through apps.

CMS-Affiliated Networks

Past efforts like TEFCA have faced challenges with cost and outdated technology. The new approach emphasizes CMS-aligned networks powered by FHIR and RESTful APIs.

Commitments announced at the July White House event include:

  • Enhanced plan finder tools for Medicare.
  • Faster Blue Button with digital insurance cards.
  • National Provider Directory and trusted exchange frameworks.

These initiatives signal a clear pivot from paper-based workflows to digital-first infrastructure.

What Federal Policy Means for Payers

The implications are significant for payers. They’ll need far more clinical information to design networks, manage risk, measure quality, and process prior authorization. Historically, claims data has been the backbone of payment. That is changing as clinical data becomes essential.

Bulk FHIR will allow payers to compare providers at scale with accurate, standardized data. This is a major step toward fairer reimbursement and better population health management.

AI and the Push for “All Data”

Artificial intelligence (AI) is another driver. The 21st Century Cures Act required “all data” to be made available, and today that mandate aligns with the rise of large language models (LLMs). Structured and unstructured data will become the fuel for predictive care, automated workflows, and personalized treatment.

The challenge is not just obtaining data, but computing and organizing it in real time.

1upHealth is All-In on Digital Healthcare

At 1upHealth, we are ready for this moment. Our cloud-native, FHIR-based platform ingests clinical data at scale, normalizes it into computable formats, and powers real-time event processing. Success for payers will increasingly depend on their ability to capture and compute with clinical data, and we are focused on making that possible.

We apply the Big Data tools of the modern internet to deliver a Lakehouse architecture built for healthcare. This foundation enables the care coordination and communication channels that now define how health is delivered and managed.

Healthcare is becoming digital, data-driven, and AI-powered. Federal policy is accelerating that future, and 1upHealth is here to help organizations succeed.For more information on what’s happening in Washington, check out this video by Dr. Don Rucker, 1upHealth’s Chief Strategy Officer.

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