Sewell Opening Statement at Joint Health and Oversight Subcommittee Hearing on Medicare Advantage
(As prepared for delivery)
Thank you, Chairman Buchanan, Chairman Schweikert, and Ranking Member Doggett for holding today’s hearing. Also, thank you to all the witnesses for your attendance today.
As this committee hears testimony on the Medicare Advantage program, we cannot forget that just a few weeks ago, House Republicans voted for the largest cut to American’s healthcare in our nation’s history. Because of Trump and Congressional Republicans, 17 million Americans will be kicked off their health insurance, more than 300 rural hospitals will be at risk of closing down, and half of our nation’s nursing homes will have to cut staff to keep their doors open.
My constituents deserve access to quality, affordable healthcare – whether they live in a city like Birmingham or in the rural Black Belt. However, Trump’s cuts to Medicaid will leave over 219,000 Alabamians without the care they need. Moreover, the Alabamians that don’t lose their health insurance will face rising costs and decreased coverage.
Moreover, despite efforts from Democrats on this committee, Republicans voted against the advanced premium tax credits which make it possible for millions to afford health plans.
Today, while we focus on ways to improve the Medicare Advantage program, we cannot focus on effective reforms and solutions without accounting for the chaos and upheaval our nation’s healthcare system will face because of Trump’s Big Ugly Bill.
As a representative from areas with both rural and urban underserved areas, maintaining access to hospitals for my constituents is a matter of life and death. It is out of this concern that I urge this committee to protect hospital access by strengthening the financial stability of health systems serving Medicare beneficiaries through legislative reforms.
Americans, especially our seniors, need reliable, affordable health coverage. Currently, over 54% of Medicare beneficiaries are enrolled in Medicare Advantage plans. Additionally, we are spending about 20% more per beneficiary on Medicare Advantage compared to traditional Medicare. With its increasing popularity, Medicare Advantage plans present a great opportunity for this committee to introduce legislative reforms.
As Ranking Member of Oversight, I agree that we must examine troubling practices in the Medicare Advantage program, which have created fiscal nightmares for health systems and providers across the country. Many health systems and providers have continued to voice concerns regarding the improper use of prior authorizations, retroactive denials, payment delays, risk adjustment abuses through upcoding resulting in overpayments to the program, increased administrative burdens, and lack of transparency to name a few.
Another significant concern is the lack of oversight within Medicare Advantage. In 2024, Medicare spent $83 billion on rebates for supplemental benefits, representing more money than Medicare spent on the entire physician fee schedule. Yet, this committee does not have any systematic data on supplemental benefit costs or utilization. There is simply no information regarding how often, or not, enrollees use these benefits.
We must work to first improve the transparency within Medicare Advantage to gain insight into the true nature of problems this committee need to resolve. It is clear given the number of beneficiaries choosing Medicare Advantage plans the program is here to stay. However, we must ensure the program is not exacerbating access to health care experienced within our most vulnerable communities.
I look forward to hearing today’s testimonies and the questions that follow.
I yield back.
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