On Tuesday, the House Committee on Ways & Means held a hearing with leading health system CEOs on healthcare affordability. This included discussion on issues like consolidation, site-neutral payments (same pay regardless of care setting), not-for-profit (NFP) tax-exempt status, the 340B program, rural hospital access, Medicare Advantage payment delays, prior authorization and the recent effects of H.R. 1. Click here for AHPA’s in-depth summary of the hearing.  

Committee Chairman Jason Smith (R-MO) framed the hearing as part of the Committee’s broader investigation into why healthcare is unaffordable, arguing that large hospital systems are a major driver of rising costs through consolidation, site-of-service payment differences, 340B practices, not-for-profit tax benefits, and alleged misuse of rural-focused federal funding. His core message was that hospitals cannot shift blame to insurers or drug companies, and that Congress will continue pressing for answers on hospital prices, market power and policies like site-neutral payments. “Simply put, hospitals are charging an insane amount for care. Hospital prices have skyrocketed 300 percent in just over two decades — more than any other sector of our economy,” he stated. Democrats responded that the hearing was designed to deflect attention from Republican tax and healthcare policies, which Democrats believe threaten insurance coverage, hospitals’ viability, and overall care access.