Rockville, Md. – October 06, 2026 -- The Agency for Healthcare Research and Quality (AHRQ) has launched its largest-ever market reform research challenge, offering up to $11.8 million to fund solutions that lower healthcare costs and expand patient choice.
AHRQ ties challenge launch to $556.6 billion in out-of-pocket costs
The agency cited Centers for Medicare & Medicaid Services data showing Americans spent a combined $556.6 billion in out-of-pocket healthcare expenses in 2024. A March 2026 KFF analysis found that one or two health systems controlled the entire inpatient hospital care market in nearly half of U.S. metropolitan areas that year, with concentration exceeding 75% market share in 83% of metro areas.
Two-phase structure allocates $3 million upfront, $8.8 million for finalists
The AHRQ Healthcare Choice and Competition Challenge to Improve Quality, Lower Prices, and Expand Access splits funding across two phases. Phase 1 makes up to $3 million available, with applications due October 26, 2026. Phase 1 winners advance to Phase 2, which carries up to $8.8 million in additional funding. Judges will evaluate submissions on feasibility, likely impact, novelty and team qualifications.
Agency director frames challenge as administration priority on costs
AHRQ Director Roger D. Klein, M.D., J.D., said the challenge seeks evidence-based ways to remove barriers to competition and patient choice, positioning it as part of the Trump Administration's focus on lowering healthcare costs. Klein said the goal is to deliver policymakers and healthcare leaders with workable solutions addressing regulatory, financial, organizational or delivery reform.
Open eligibility targets individuals, academic teams and U.S. entities
AHRQ is inviting participation from individuals, teams, academic institutions and other U.S.-based entities. The agency directed interested parties to consult the official challenge announcement for eligibility requirements, registration steps, submission instructions and prize terms.