Each week while Congress is in session, our Policy team delivers a key update to highlight a topical benefits, health, or retirement news item from the Hill, such as a newly introduced bill, a summary of a committee hearing, or another hot-button matter.
On October 22, the Senate Special Committee on Aging held a hearing entitled, “Modernizing Health Care: How Shoppable Services Improve Outcomes and Lower Costs.” The hearing was intended to “explore how price transparency and the rise of shoppable health care services can benefit patients by promoting competition, reducing costs, and improving outcomes.” In his opening remarks, Chairman Rick Scott (R-FL) stated that the health care system operates “in the shadows, without price transparency or consumer choice” and that the “result is a complicated system of inflated prices shrouded in secrecy….” Chairman Scott advocated for increased price transparency, including with respect to prescription drugs. Ranking Member Kirsten Gillibrand (D-NY) discussed the populations likely to lose healthcare coverage if the APTCs are not extended.
The witnesses were:
- Mark Cuban, Co-Founder, Cost Plus Drugs, who reviewed how pharmacy benefit managers function and recommended their discontinuance; during questioning, Mr. Cuban said his company would work with TrumpRx;
- G. Keith Smith, M.D., Co-Founder, Surgery Center of Oklahoma and the Free Market Medical Association, who spoke about patients and surgeons attracted to the “all-inclusive,” private-pay surgery center he founded;
- Don Moulds, PhD, Chief Health Director, CalPERS, who discussed the cost savings garnered by implementing reference-based pricing; and
- Jeanne Lambrew, PhD, Director of Health Care Reform and Senior Fellow, The Century Foundation, who discussed the Affordable Care Act marketplace and the effects of lost APTCs.
After initial testimony, lawmakers touched on numerous topics, including extensive remarks on the possible outcomes of expiring enhanced APTCs, criticisms of the Affordable Care Act, the negative effects of monopolization in the healthcare space, and the positive effects of price transparency, among others.
As a special committee, the Aging Committee does not approve legislation for consideration by the full Senate, but two members of the Committee mentioned their relevant bills. Sen. Elizabeth Warren (D-MA) brought up her bill with Sen. Josh Hawley (R-MO) from the 118th Congress to prohibit pharmacies and pharmacy benefit managers from sharing common ownership, and Sen. Roger Marshall (R-KS) mentioned his bill with Sen. John Hickenlooper (D-CO) to increase hospital and insurer price transparency.
