Senator Hassan Questions Impact of Medicaid and Drug Price Cuts on Healthcare Costs

Impact of Drug Price Increases

• 💊 Democrats passed the Inflation Reduction Act to allow Medicare to negotiate drug prices, leading to lower out-of-pocket costs for seniors on 10 drugs starting in 2026.
• ⚠️ Congressional Republicans are attempting to undermine this program by exempting certain drugs, like cancer medications, which could make them more expensive for seniors.
• 📉 When drug prices increase, patients, especially those with even low co-pays, may forgo necessary medications, leading to adverse health outcomes and potentially death.

Facility Fees and Patient Costs

• 🏥 Providers are charging patients hundreds of dollars in extra hospital facility fees at outpatient facilities, even for routine appointments.
• 💸 Patients are often unaware of these fees, leading to unexpected bills that can be 60-70% higher with no added clinical value.
• 🚫 Several states have banned facility fees for office visits and telehealth, and efforts are underway to address this issue nationally.

Medicaid and ACA Cuts

• 📉 Republican budget bills propose cutting over a trillion dollars from Medicaid and the Affordable Care Act, potentially removing millions from coverage.
• 📈 These cuts are expected to cause premiums for ACA marketplace plans to surge and increase prescription drug prices for low-income Medicare beneficiaries.
• 🚑 Uninsured individuals will face soaring healthcare costs, and a rise in patients with life-threatening complications from chronic conditions is anticipated due to lack of care.

Effects on Safety Net Providers

• ⚠️ Cuts to Medicaid could be devastating for safety net providers, particularly in rural and underserved areas, who rely heavily on Medicaid revenue.
• 🏥 These providers may be forced to cut services, reduce staff, or close entirely, exacerbating existing health deserts, including potential pediatric health deserts.