During a House Ways and Means Committee hearing prior to the congressional recess, Rep. Danny Davis (D-IL) questioned Brookings Institution Fellow, Matthew Fiedler, about the economic effects of healthcare cuts.
00:00Mr. Davis, you're recognized. Thank you, Mr. Chairman. Chairman Buchanan,
00:08Ranking Member Doggett, Chairman Swarkett, Ranking Member Sewell. Let me thank all of you
00:17for holding this hearing on Medicare Advantage, and I certainly want to thank
00:24all of the witnesses who have been with us for a long period of time.
00:32Medicare Parts A and B and Medicare Advantage Part C are two distinct ways to receive Medicare benefits.
00:43The former is a federal program offering basic hospital and medical coverage,
00:50while the latter is Medicare Advantage plans offered by private companies and often include some
00:59additional benefits. Unfortunately, this hearing is not discussing the dastardly acts that Republicans
01:08have done with their big ugly bill, H.R.1, that impacts and demises the American middle class
01:18and low-income people's health insurance coverage. It became law on July 4th, 2025.
01:28This law cuts out more than $1.5 trillion in spending from safety net programs,
01:39such as disproportionate share hospitals, federally qualified health centers, Medicaid, Medicare,
01:48changes to the Affordable Care Act, and eliminating premium health tax credits for those who purchase
01:59insurance through our marketplaces, along with 17 million Americans being purged from insurance
02:09coverage. Also, our seniors who are in nursing homes and long-term care facilities are negatively affected
02:19by this law as well. In my state of Illinois, these cuts affect 35.4% of all children, 40% of moms given birth
02:34and their newborn babies, 40% of working age adults with disabilities, 69% of people living in nursing homes,
02:4618% of Medicare beneficiaries, and 15.6% of adults aged 19 to 64. So while today's hearing had the potential to produce,
02:52fruitful discussion on how best to improve Medicare Advantage, I can't help but point out the hypocrisy of this hearing,
03:08as it comes on the heels of my Republican colleagues' ongoing effort to clash $1.5 billion in Medicaid and the Affordable Care Act marketplace plans,
03:30just to support the enactment of tax cuts for the ultra-rich. Dr. Fiedler, as an economist,
03:42could you share your thoughts on how these cuts will impact the American economy as it increases medical debt
03:56and insurance companies' premiums get raised? So we have very good research on what happens when people
04:07become uninsured and what does that mean for their financial lives. And, you know, when somebody,
04:13when someone's on Medicaid, they're basically completely protected against the risk of catastrophic
04:19medical expenses. And when they're uninsured, you know, thankfully most people in any particular year
04:25won't have a major medical event and end up in the hospital, but some of them will. And when that
04:29happens and you're uninsured, that is a financially ruinous outcome for you. And so what we see is
04:36negative effects on people's credit scores and ability to get a mortgage, get a credit card. We also see
04:43effects on eviction and other financial and economic outcomes are worse when people are uninsured.
04:50Thank you, Mr. Chairman. And I believe that even when we improve, and if we do improve Medicare Advantage,
05:00it will take years to try and make up for the damage that is being done to our health care delivery
05:08system now. Thank you very much, and I yield back.
