Reverse the Curse: Skyrocketing Health Care Costs and America's Fiscal Future

Health Care Costs and Drug PricingHouse Budget · January 21, 2026 · 119th Congress
The House Budget Committee held this hearing to examine why U.S. Begins at ▶ 0:17:33
Transcript
Highlights

Title

Rising health care costs, ACA subsidy expiration, and federal fiscal pressure

Purpose

The House Budget Committee held this hearing to examine why U.S. health care spending — now over $5 trillion a year and roughly a fifth of GDP — continues to grow faster than the economy, and what that means for the federal budget. Chair Jodey Arrington (R-TX) and Ranking Member Brendan Boyle (D-PA) framed opposing views on the causes, with Republicans citing waste, fraud, market consolidation, and open-ended subsidies, and Democrats focusing on the recent expiration of enhanced ACA premium tax credits and Medicaid cuts from the 2025 reconciliation law. Witnesses included two conservative-leaning economists, an advocate for market-based reform, and a home care worker testifying about losing her own coverage. Begins at▶ 0:17:33

Who spoke

• Chair Jodey Arrington (R-TX)▶ 0:17:33: Opened by noting health spending is nearly $6 trillion, half of it government-funded, up from $19 billion in 1975▶ 0:19:51▶ 0:20:15; criticized the enhanced ACA subsidies as fraud-prone and urged bipartisan, bold action in reconciliation 2.0▶ 0:22:19▶ 0:23:21; later pressed witness Bumbry-Graves on eligibility fraud▶ 0:52:16 and closed by defending the "one big beautiful bill's" waste-fraud-abuse crackdown▶ 3:24:13.

• Ranking Member Brendan Boyle (D-PA)▶ 0:25:10: Said the reconciliation bill cut about $1 trillion from health care, mostly Medicaid, causing roughly 15 million Americans to lose coverage per CBO▶ 0:26:48▶ 0:27:13; cited a 102% average Pennsylvania ACA premium increase▶ 0:28:32; later questioned witness Bumbry-Graves about her insurance loss▶ 0:57:28 and pressed Roy on drug pricing and broker fraud in ACA enrollment▶ 1:09:02▶ 1:12:42.

• Dr. Benedic Ippolito, American Enterprise Institute▶ 0:31:17: Said 2024 health spending grew 7.2%, the second straight year above 7%▶ 0:32:05; noted federal health support (Medicare, Medicaid, tax exclusions) now exceeds $2 trillion a year, more than Social Security or defense▶ 0:33:47; recommended targeting low-value care in traditional Medicare and Medicare Advantage overpayments▶ 0:35:03▶ 0:35:33; later backed basing ACA subsidies on prior-year verified income to curb fraud▶ 1:16:23.

• Mr. Avik Roy, Foundation for Research on Equal Opportunity▶ 0:35:56: Said U.S. per-capita government health subsidies ($7,438) far exceed the median of comparable nations ($3,144)▶ 0:37:14; blamed the tax exclusion for employer coverage as the "original sin" driving costs▶ 0:38:29; proposed a Swiss-style universal private-insurance model with 5-to-1 age bands and reinsurance▶ 0:39:55▶ 0:40:48; discussed his own uninsured status via the "Crowd Health" cost-sharing model, saving over $1,000/month versus ACA coverage▶ 2:40:37▶ 3:01:24.

• Mr. Joel White, Council for Affordable Health Coverage▶ 0:41:37: Said average family premiums are $20,000/year (20% of family budgets) and could reach 40% within six years▶ 0:42:03▶ 0:42:32; said 97% of hospital and Medicare Advantage markets are uncompetitive, raising prices ~30%▶ 0:43:26; proposed HSA "sidecars," banning facility fees, and portable subsidies▶ 0:44:41▶ 3:11:24; said 35% of ACA enrollees filed zero claims last year, twice the employer-market rate, suggesting fraud▶ 1:55:11▶ 1:55:39.

• Mrs. Rena (Joyce Renee) Bumbray-Graves, SEIU home care worker▶ 0:46:56: Testified she cares full-time for two disabled relatives and works in health care but cannot afford her own insurance▶ 0:47:19▶ 0:47:43; said her ACA premium rose from $544 to over $1,300/month, forcing her and her husband to drop coverage and go uninsured▶ 0:48:12▶ 0:58:25; described paying $300 out-of-pocket for her husband's cast after his broken arm and stopping her own inhaler prescription▶ 0:48:40▶ 0:50:51; asked Congress to restore the tax credits▶ 0:51:21.

• Rep. Lloyd Smucker (R-PA)▶ 1:03:47: Said Obamacare premium increases predate the COVID-era subsidies and asked Roy how to address affordability▶ 1:04:39▶ 1:06:18.

• Rep. Lloyd Doggett (D-TX)▶ 1:09:02: Pressed Roy on drug pricing and innovation, and criticized the Trump administration for reinstating suspended insurance brokers flagged for ACA enrollment fraud▶ 1:12:42.

• Rep. Glenn Grothman (R-WI)▶ 1:15:01: Cited a GAO report finding 23 of 24 fictitious ACA applicants were approved for subsidies▶ 1:15:27; asked about basing subsidies on prior-year income and cutting mandated mental health coverage▶ 1:16:23▶ 1:20:28.

• Rep. Jimmy Panetta (D-CA)▶ 1:21:26: Asked White about tariffs' effect on medical device/drug prices▶ 1:22:47 and pushed his Strengthening Medicare for Patients and Providers Act to index doctor payments to inflation▶ 1:25:47.

• Rep. Blake Moore (R-UT)▶ 1:26:40: Asked Ippolito and White what questions they'd pose to insurance executives testifying the next day, focusing on cost drivers and portable subsidies▶ 1:27:29▶ 1:30:33.

• Rep. Stacey Plaskett (D-VI)▶ 1:31:53: Said H.R.1 eliminates nearly $1 trillion in health coverage nationally and described the Virgin Islands' Medicaid funding caps, outdated Medicare hospital reimbursement formulas, and hospitals asking patients to bring their own diapers and sheets▶ 1:33:15▶ 1:36:24.

• Rep. Chuck Edwards (R-NC)▶ 1:37:39: Asked Ippolito and Roy about rural hospital funding and provider taxes benefiting large hospitals with $24 million CEO pay▶ 1:38:15.

• Rep. Becca Balint (D-VT)▶ 1:43:01: Said 28,000 Vermonters will lose coverage from the reconciliation cuts; questioned Bumbray-Graves on the impact of losing coverage and pressed White on breaking up monopolies▶ 1:44:22▶ 1:48:26.

• Rep. Andy Clyde (R-GA)▶ 1:50:43: Argued expiring COVID-era subsidies mainly benefited higher-income enrollees and touted the "Lower Health Care Premiums for All Act," which CBO estimated would cut premiums by nearly 12%▶ 1:52:56; asked White about "zero-claim" ACA enrollees costing taxpayers▶ 1:55:11.

• Rep. Judy Chu (D-CA)▶ 1:56:34: Highlighted a constituent's 886% premium increase and questioned Bumbray-Graves about sacrifices from losing coverage▶ 1:58:01▶ 1:59:14.

• Rep. Marlin Stutzman (R-IN)▶ 2:02:57: Focused on chronic disease and the MAHA movement, asking White about wellness incentives and Medicare Advantage supplemental benefits for healthy food▶ 2:03:50▶ 2:05:33.

• Rep. Morgan McGarvey (D-KY)▶ 2:08:19: Cross-examined Bumbray-Graves comparing her situation to constituents "Ann" (premium up to $1,275.69/month) and a business owner (up to $2,400/month), and to rising costs generally▶ 2:08:48▶ 2:09:43.

• Rep. Tim Moore (R-NC)▶ 2:13:27: Asked Roy how the Working Families Tax Cuts Act strengthened Medicaid program integrity via state provider-tax reforms▶ 2:13:57.

• Rep. Veronica Escobar (D-TX)▶ 2:18:29: Framed budget priorities against Greenland, ICE funding, and Venezuela oil spending versus health care, with Bumbray-Graves answering "health care" to each▶ 2:22:03▶ 2:22:30.

• Rep. Ben Cline (R-VA)▶ 2:23:27: Argued constituents want more choices, not Obamacare, and asked Roy about scope-of-practice laws and HSAs for rural primary care access▶ 2:26:11▶ 2:28:29.

• Rep. Marcy Kaptur (D-OH)▶ 2:29:36: Noted only one of four witnesses had health insurance; said the reconciliation bill added over $4 trillion to the debt while cutting coverage, and praised Bumbray-Graves' testimony▶ 2:30:56▶ 2:33:38.

• Rep. Addison McDowell (R-NC)▶ 2:34:09: Questioned White on which party wrote and signed the ACA and its expiring subsidies, and on private equity's role in consolidation▶ 2:34:33▶ 2:37:19.

• Rep. Nellie Pou / Rep. Coleman (D-NJ)▶ 2:39:11: Called for "Medicare for All" and questioned Roy on his own insurance status and cited constituent premium increases up to 3,367%▶ 2:40:37▶ 2:41:34.

• Rep. Troy Nehls / "Mr. McCain" (R-OK)▶ 2:56:12: Cited a chart showing U.S. spends more per capita than peer nations with worse life expectancy; asked Roy to explain Crowd Health, HSAs, and free-market alternatives▶ 2:57:01▶ 2:59:57.

• Rep. Bobby Scott (D-VA)▶ 3:02:26: Questioned Roy on the sustainability of the Crowd Health cost-sharing model and on cost-shifting from uninsured patients, and on the true fiscal cost of the reconciliation bill versus extending ACA credits▶ 3:02:52▶ 3:05:04.

• Rep. Pramila Jayapal (D-WA)▶ 3:13:43: Asked Roy to explain the Swiss universal-insurance model and ACA fixes, and closed noting the system needs a "restart"▶ 3:13:43▶ 3:17:49.

• Rep. Gabe Amo (D-RI)▶ 3:18:20: Cited a 40,000-Rhode Islander coverage loss and a constituent, Marlene, facing premiums rising from $808 to $1,400/month; closed questioning Bumbray-Graves on her choices going forward▶ 3:21:14▶ 3:23:00.

Key moments

• Boyle stated CBO projects roughly 15 million Americans will lose coverage from the reconciliation law's Medicaid and ACA marketplace cuts, and cited a 102% average Pennsylvania exchange premium increase▶ 0:26:48▶ 0:28:32.

• Bumbray-Graves testified her family's ACA premium rose from $544 to over $1,300 a month, forcing her to drop coverage entirely and go uninsured despite working in home health care▶ 0:48:12▶ 0:58:25.

• Ippolito said federal health spending has grown from 33% to 50% of total U.S. health expenditures since the late 1980s, and now exceeds $2 trillion annually — more than Social Security or defense▶ 0:32:54▶ 0:33:47.

• Roy said U.S. government health subsidies per capita ($7,438) are more than double the median of 32 peer nations ($3,144), and that the U.S. ranks last in fiscal sustainability and affordability in his organization's world health index▶ 0:37:14▶ 0:38:04.

• White said 97% of hospital and Medicare Advantage markets are "uncompetitive," inflating prices roughly 30%, and that 35% of ACA exchange enrollees had zero claims last year — double the employer-market rate — suggesting fraud▶ 0:43:26▶ 1:55:11.

• Arrington and Bumbray-Graves' witness colleague White disagreed sharply when Arrington asked her to endorse cracking down on "ineligible" enrollees; she replied she was "doing everything by the book" and had no comment on others' fraud▶ 0:52:45▶ 0:56:58.

• Doggett said the GAO identified serious ACA broker fraud that the Biden administration addressed by suspending brokers, but the Trump administration "reinstated every one of them" with no explanation▶ 1:12:42▶ 1:13:11.

• Grothman cited a GAO test in which 23 of 24 fictitious ACA applicants were approved for subsidized coverage, which Roy called "alarming" evidence of poor program integrity▶ 1:15:01▶ 1:15:54.

• Roy described how metropolitan hospital systems use network-adequacy rules to force insurers to accept high prices by leveraging acquired rural hospitals, calling it a distortion driving rural hospital consolidation▶ 1:41:42▶ 1:42:07.

• Kerry noted the reconciliation bill cost about $4.5 trillion versus roughly $300 billion to extend enhanced ACA credits for ten years; Roy replied the comparison depends on CBO scoring conventions and argued underlying ACA premiums should be reduced instead▶ 3:04:36▶ 3:05:04.

Metadata

CommitteeHouse Budget
Chamber / CongressHouse · 119th Congress
DateJanuary 21, 2026
TypeHearing
Witnesses
Dr. Benedic Ippolito — Senior Fellow, American Enterprise Institute
Mr. Avik Roy — Co-Founder and Chairman, Foundation for Research on Equal Opportunity
Mr. Joel White — President, Council for Affordable Health Coverage
Mrs. Rena Bumbray-Graves — Member, Service Employees International Union (SEIU), and Home Care Worker
Videoyoutube
Transcript451 caption blocks · 32,324 words · 3:33:11 runtime
EventCongress.gov 118867