Lubbock Times

Washington, D.C. - House Budget Committee Chairman Jodey Arrington (R-TX) delivered opening remarks today at the Committee hearing titled “Breaking Up Health Care Monopolies: Examining the Budgetary Effects of Health Care Consolidation.” The hearing focused on the budgetary effects of increasing health care consolidation and explored policy solutions to enhance competition, with the objective of reducing health care costs and expanding patient choices.

Chairman Arrington began his remarks by emphasizing the importance of addressing national debt concerns. "Our national debt is approaching $35 trillion," he stated. "We're adding $8 billion to the debt every day, our gross debt to GDP is over 123%, which is higher than it was when we were fighting a World War."

Arrington highlighted that interest payments on the national debt this year will exceed spending on national defense and Medicare. He stressed that federal health care spending is a significant driver of this debt. According to projections from the Congressional Budget Office, spending on major health care programs will nearly double from $1.7 trillion in 2024 to $3.2 trillion in 2034.

"National health expenditures are projected to grow faster than our economy over the next decade," Arrington noted, indicating that healthcare spending could rise from 17% of total economic output to 20%, reaching over $7 trillion.

The hearing aimed to address one key issue affecting the healthcare system: increased consolidation in healthcare markets. Arrington cited data showing more than 1,000 hospital mergers between 2002 and 2020, leading to an average price increase of $521 for hospital services after mergers occur.

Additionally, Arrington pointed out that vertical integration has significantly increased among physicians and within the prescription drug supply chain. "Prices for physician services in areas with high market concentration are between statistically 14% and 30% higher than in areas with less consolidation," he said.

He discussed efforts by House Republicans through policies such as site-neutral payment reform included in their "Reverse the Curse" balanced budget proposal. This reform aims to equalize payments for Medicare services regardless of where they are provided while ensuring rural providers remain unaffected.

"In terms of our success, lastly, the House Republican Lower Cost More Transparency Act passed the House in December," Arrington mentioned. The act includes transparency reforms intended to improve healthcare markets and incorporates site-neutral payment provisions for Part B physician-administered drugs.

As chairman, Arrington affirmed his commitment to examining rising consolidation's effects on budgets and discussing necessary reforms. "That's what we want—more access and lower costs," he concluded.

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