A joint hearing was held by the Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs and the Subcommittee on Health Care and Financial Services to discuss the impact of technology on healthcare affordability in the United States. Lawmakers examined how regulatory policies under recent administrations have influenced healthcare costs and considered how new medical technologies could help reduce expenses.
Several witnesses addressed how government regulations affect innovation and costs. Dr. Darius Lakdawalla from the University of Southern California noted, “[The] current approach to Medicare Advantage risk adjustment weakens, or sometimes even eliminates, incentives for long-term prevention. For instance, academic research shows that including pneumonia and risk adjustment coincided with reductions in the influenza vaccinations that help prevent pneumonia. That’s because risk adjustment insulates insurers from the cost of long-term illness and eliminates their financial rewards from preventing such illness. On the provider side, alternative payment models also encourage short-term thinking by limiting shared savings from prevention to just 12-month horizons.”
Dr. Ziad Obermeyer of UC Berkeley spoke about difficulties accessing health data for research in the U.S., stating, “When I started this work, it was so difficult to get the data that we needed here in the United States that I ended up doing this research in Sweden. That process took ten years, but it was still faster than doing it here, despite European data regulations. That is a real problem for patients who don’t know that they’re at high risk, and a problem if we want the United States to lead in health [artificial intelligence]. The major culprit here is the many layers of permissions and approvals required to touch health data. Most of that burdensome paperwork does not actually keep patients or their data safe, and it also opens the door to ideological bias.”
Chris Jacobs from Juniper Research Group criticized existing policies: “First, Obamacare has not met its stated objectives. The law singularly failed to achieve candidate Obama’s 2008 promise that his healthcare plan would, quote, ‘bring premiums down by $2,500 for the typical family,’ end quote. Individual health insurance premiums more than doubled in the law’s first four years of full implementation, and continue to rise faster than premiums for employer sponsored coverage. Meanwhile, the law encourages insurers to avoid the sickest patients, often harming those at most intended to help. Second, despite what some may believe, there’s a surprising amount of consensus bipartisan consensus about the law’s failure to control health care costs.”
Panelists highlighted private sector innovation as a way forward for reducing healthcare expenses through technology such as artificial intelligence (AI). Dr. Obermeyer explained an AI system designed to assess patient risk for sudden cardiac death: “A defibrillator implanted into the heart could save [patients’] lives...Two-thirds of the defibrillators that doctors actually put in never fire...That’s a $50,000 procedure with real risks...But in this case, zero benefit...My colleagues and I have built an AI system to help solve that problem...Our early testing shows it does so far more accurately than what doctors are currently using.”
Brian Whorley from Paytient Technologies described ways technology can make prescription access easier: “Seniors should be able to opt in in real time when they need help...instead of waiting 24 hours and making a return trip to the pharmacy...[This] technology exists.”
Lawmakers questioned witnesses on regulatory impacts under different administrations as well as policy options related to insurance subsidies and fraud prevention.
Subcommittee Chairman Eric Burlison asked about regulatory barriers affecting business innovation: “[Mr. Whorley], would you say that the status quo is propped up by regulations...that stop innovation like yourself...?” Mr. Whorley replied: “I think you know...The best regulation is probably no regulation…the ability for us to innovate…That’s what we’re attuned to.” He further stated about recent changes: “In 2025 has been a transformational watershed year…we have enabled…nearly 20 million people to more easily access and afford care…”
Chairman Glenn Grothman discussed wasteful spending: “Not only are our children facing chronic diseases as rates never seen before…but…the health care system seems…to only get more expensive without any noticeable improvement in outcomes...” Chris Jacobs responded: “I certainly think there is a great amount of waste…We don’t have correctly aligned incentives…we do need price and quality transparency…”
Rep. Byron Donalds addressed potential abuse associated with zero premium plans: “In your opinion do zero premium plans lead to fraud and abuse?” Jacobs answered: “…without a doubt…the concerns about improper enrollments…all of them have been pointing to increased incidence of improper enrollments and fraud.” Donalds also asked Dr. Obermeyer about workforce effects if AI becomes integrated into medicine; Obermeyer replied it would change job roles rather than eliminate jobs.
Rep. Brandon Gill questioned whether ACA slowed premium growth; Jacobs said premiums doubled after ACA implementation due mainly to regulatory mandates.
Video footage from this hearing is available online.
