At a Glance
- The five CEOs of major health insurers will testify before Congress on Thursday.
- Republicans plan to pin rising health-care costs on the industry.
- The hearings focus on the expired Affordable Care Act subsidies and the ACA’s role in price growth.
- Why it matters: The outcome could shape future federal policy on health-care affordability.
The CEOs of five major health insurers are set to testify before House Republicans on Thursday, as lawmakers seek answers for soaring health-care costs. The hearings, held back-to-back on the Energy and Commerce and Ways and Means committees, will scrutinize the industry’s role after the enhanced Affordable Care Act subsidies expired at the end of last year, triggering sharp premium hikes for millions.
The Congressional Push
The hearings are part of a broader Republican effort to identify the “root causes” of higher health-care prices. Committee chairs Brett Guthrie, R-Ky., and Jason Smith, R-Mo., said the focus would be on the ACA and the lapse of enhanced tax credits.
- Energy and Commerce Committee: Chair Brett Guthrie, R-Ky.
- Ways and Means Committee: Chair Jason Smith, R-Mo.
The plan is to examine how the ACA’s mandate for coverage regardless of health status and its prohibition on individual underwriting have impacted prices. A hearing document states that these provisions “effectively increase health-care access and affordability for the unhealthiest Americans but also drive up costs for healthier Americans.”
Key Players
The CEOs slated to testify are:
- UnitedHealth Group
- CVS Health Group
- Cigna Health Group
- Elevance Health
- Ascendiun
UnitedHealth Group‘s Stephen Hemsley will argue that insurers compete aggressively to keep premiums affordable, but that costs are largely set by the broader health-care system. His testimony will emphasize that premium rates are based on two key factors: how much care is used and how much is charged.
David Joyner, CEO of CVS Health, will highlight the “greater demand for care, growing medical provider costs, and persistently high prices for hospital care and prescription drugs” as the main drivers of rising premiums.
Cigna’s and Elevance’s CEOs are expected to echo similar themes, focusing on the systemic nature of cost increases.
Policy Context
The hearings come after President Donald Trump’s health-care plan, which proposes redirecting ACA subsidy funds into health savings accounts. The plan, announced last week, offers few details and is unlikely to be the focus of Thursday’s sessions.
The Senate is currently out of session, and the House will go into recess next week, making it unlikely that any new legislation will pass in the near term.
Expert Perspectives
Gideon Lukens, senior fellow at the Center on Budget and Policy Priorities, argues that the ACA fixed pre-existing-condition coverage issues and made the insurance market “functional and stable.” He says the “elephant in the room” is the expired enhanced tax credit and urges an extension to prevent further harm.
Drew Altman, president and CEO of KFF, a nonpartisan health policy research group, criticized insurers for “making people miserable through prior authorization review and in many other ways.” He says they are an easy target for Republican blame.
What’s at Stake
The hearings could set the tone for future policy debates on health-care affordability. While the Senate and House are unlikely to act quickly, the testimonies will inform whether the GOP will push for new regulations or rely on the current ACA framework.
The focus on the expired subsidies highlights the immediate affordability crisis that has unfolded since the end of last year. Insurers will need to explain how they balance rising costs with the need to keep premiums affordable.
Key Takeaways
- Five CEOs will testify, with a focus on the ACA and expired subsidies.
- Republicans aim to hold insurers accountable for price growth.
- The Senate’s recess and the House’s upcoming recess make rapid legislative action unlikely.
- Experts argue the ACA’s coverage mandates have stabilized the market, but the subsidy lapse has worsened affordability.
- The outcome of these hearings will influence future health-care policy and the debate over federal subsidies.
