Subcommittee on Health Care and Financial Services Chairman Glenn Grothman (R-Wis.) opened a joint hearing focused on the role of technology in reducing health care costs. The hearing, titled “Lowering the Cost of Healthcare: Technology’s Role in Driving Affordability,” brought attention to the significant spending on health care in the United States and explored how innovation could address inefficiencies.
Grothman highlighted that total U.S. health care spending reached $4.9 trillion in 2023, which averages to $14,570 per person and accounts for nearly 18% of the nation’s Gross Domestic Product (GDP). He noted that this is a substantial increase from 1970, when health care made up only 7% of GDP.
“The problem is not that we’re spending money on health care. The problem is that the money that we’re spending is being wasted and does not improve patient health,” Grothman said.
He cited studies indicating that about one-third of U.S. health care expenditures are wasteful, meaning they do not lead to better patient outcomes. In dollar terms, this amounted to over $1.6 trillion in 2023 alone—an amount comparable to what the federal government spent on all major public insurance programs such as Medicare, Medicaid, CHIP, and ACA marketplace subsidies in 2024.
According to Grothman, more than half of this wasteful spending stems from administrative expenses. He pointed out that administrative staff growth has far exceeded increases in clinical staff like doctors and nurses over recent decades. This expansion has led hospitals and insurers to employ multiple administrators for every practicing physician—a cost ultimately borne by patients through higher prices and premiums.
“At the same time, patients are often left completely in the dark about prices. Someone scheduling a routine procedure frequently has no idea what it will cost or how prices compare across hospitals, clinics, or providers,” he said.
Grothman argued that such price opacity is uncommon outside health care and suggested that greater transparency could make the system more efficient if more resources were directed toward patient care instead of bureaucracy.
“This is where technology has the potential to make a real difference,” he stated.
He explained that innovative technologies can automate administrative tasks, streamline billing processes, reduce paperwork burdens, and give patients tools to compare procedure costs across providers—all steps aimed at increasing competition and lowering costs while improving access.
The hearing featured an expert panel expected to discuss causes behind rising costs and ways technological advancements could contribute to affordability moving forward.
“We look forward to their testimony today,” Grothman concluded.
