The Lower Costs, More Transparency Act

People need and want more affordable health care. The bipartisan Lower Costs, More Transparency Act will help people get access to the right care, at the right time, at a price they can afford. The bill is led by House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA), Ranking Member Frank Pallone, Jr. (D-NJ), House Committee on Ways and Means Chair Jason Smith (R-MO), and House Committee on Education and the Workforce Chair Virginia Foxx (R-NC).

The Lower Costs, More Transparency Act:

  • Increases price transparency throughout the health care system
  • Addresses the cost of prescription drugs
  • Supports patients, health care workers, community health centers, and hospitals

Chair Rodgers: “More than 60% of Americans are living paycheck to paycheck. It means they are just one medical bill away from a financial emergency. One doctor visit away from not being able to pay their rent, for their groceries, or gas. 

“A recent poll of Americans with health insurance found more than half ranked ‘reducing health care costs’ as their top health care policy priority. For a more secure and healthier future, people need more certainty and stability.” 

CLICK HERE to see Chair Rodgers full statement on the House Floor upon the passage of this landmark bill.

The Latest
E&C, Ways & Means, Ed & the Workforce Leaders Celebrate Passage of Bipartisan Bill to Lower Health Care Costs and Increase Transparency
Aug 13, 2026
Health
New HHS Report Depicts How the Working Families Tax Cuts Lowers Health Insurance Premiums and Hospital Prices for Americans

WASHINGTON, D.C. - This week, the U.S. Department of Health and Human Services Office of the Assistant Secretary for Planning and Evaluation (ASPE) released a report, finding provider tax and state-directed payment policies in the Working Families and Tax Cuts (WFTC) are expected to reduce health care prices by up to 3.5 percent and reduce costs in Medicaid, commercial insurance, and Medicare—noting an additional $29 billion in savings for Medicare and commercial coverage for every $100 billion in Medicaid savings. Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, and Congressman Morgan Griffith (VA-09), Chairman of the Energy and Commerce Subcommittee on Health, issued the following statement in response to ASPE's findings:

"Despite Democrat rhetoric, evidence continues to show that our Working Families Tax Cuts will protect patients by not only restoring the long-term security of the Medicaid program, but also lowering costs for patients. By ending abuses of financing gimmicks, we help save taxpayer dollars and ensure federal funding is being used for the most vulnerable.

"It's no secret that the abuse of provider tax schemes and state directed payment arrangements had become an open-ended checkbook for states to shift more and more costs to the federal government, driving unsustainable and unaccountable growth in the Medicaid program. In a new report released by the Department of Health and Human Services, not only will these policies safeguard the Medicaid program and its beneficiaries but will also lower health care prices by 3.5 percent and reduce health care spending for Americans with private commercial insurance and Medicare. Because of Republicans' commonsense policies, we are protecting our most vulnerable and lowering health care costs for all Americans," said Charimen Guthrie and Griffith

BACKGROUND:

  • Last year, the House Committee on Energy and Commerce rooted out over a trillion dollars of waste, fraud, and abuse through policies that strengthen, secure, and sustain our Medicaid program.
  • Health care provider taxes have been used to fund Medicaid supplemental payments like state-directed payments (SDPs), drawing down additional federal Medicaid funding to support higher provider rates without additional expenditures from state general funds.
  • SDPs increased considerably during the Biden Administration, with managed care organizations receiving $43 billion in payments in 2021-an amount that more than tripled to $144 billion by 2025.
  • Without the WFTC, payments were expected to exceed $300 billion by 2034.
  • By 2025, the average service covered by an SDP was compensated at 186 percent of the Medicare rate, meaning often we were paying significantly more to care for able-bodied adults than our seniors.
  • Policies in the WFTC that reduce the abuse of provider taxes and SDP gimmicks are projected to reduce non-Medicaid prices by up to 3.5 percent, benefiting non-Medicaid payers by $502 billion to $875 billion from 2025-2034.
    • Once fully phased in, these policies are expected to lower annual health care spending by $100 billion to $175 billion.
  • Some of the savings to non-Medicaid payers also accrue to the federal government, saving an additional $97 billion to $169 billion beyond its savings on Medicaid and reducing total federal health spending by an average of 2.9 percent to 5.1 percent, when fully phased in.
  • This isn't just savings for taxpayers; ASPE projects the changes to provider taxes and state directed payments under the WFTC could lead to reduced premiums in commercial insurance markets, making employer-sponsored insurance and Marketplace coverage more affordable for Americans than they would have been without the WFTC.

Read additional coverage on this report HERE.

The Latest
The House Passed a Long-Needed Health Care Price Transparency Measure
Aug 13, 2026
Health
New HHS Report Depicts How the Working Families Tax Cuts Lowers Health Insurance Premiums and Hospital Prices for Americans

WASHINGTON, D.C. - This week, the U.S. Department of Health and Human Services Office of the Assistant Secretary for Planning and Evaluation (ASPE) released a report, finding provider tax and state-directed payment policies in the Working Families and Tax Cuts (WFTC) are expected to reduce health care prices by up to 3.5 percent and reduce costs in Medicaid, commercial insurance, and Medicare—noting an additional $29 billion in savings for Medicare and commercial coverage for every $100 billion in Medicaid savings. Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, and Congressman Morgan Griffith (VA-09), Chairman of the Energy and Commerce Subcommittee on Health, issued the following statement in response to ASPE's findings:

"Despite Democrat rhetoric, evidence continues to show that our Working Families Tax Cuts will protect patients by not only restoring the long-term security of the Medicaid program, but also lowering costs for patients. By ending abuses of financing gimmicks, we help save taxpayer dollars and ensure federal funding is being used for the most vulnerable.

"It's no secret that the abuse of provider tax schemes and state directed payment arrangements had become an open-ended checkbook for states to shift more and more costs to the federal government, driving unsustainable and unaccountable growth in the Medicaid program. In a new report released by the Department of Health and Human Services, not only will these policies safeguard the Medicaid program and its beneficiaries but will also lower health care prices by 3.5 percent and reduce health care spending for Americans with private commercial insurance and Medicare. Because of Republicans' commonsense policies, we are protecting our most vulnerable and lowering health care costs for all Americans," said Charimen Guthrie and Griffith

BACKGROUND:

  • Last year, the House Committee on Energy and Commerce rooted out over a trillion dollars of waste, fraud, and abuse through policies that strengthen, secure, and sustain our Medicaid program.
  • Health care provider taxes have been used to fund Medicaid supplemental payments like state-directed payments (SDPs), drawing down additional federal Medicaid funding to support higher provider rates without additional expenditures from state general funds.
  • SDPs increased considerably during the Biden Administration, with managed care organizations receiving $43 billion in payments in 2021-an amount that more than tripled to $144 billion by 2025.
  • Without the WFTC, payments were expected to exceed $300 billion by 2034.
  • By 2025, the average service covered by an SDP was compensated at 186 percent of the Medicare rate, meaning often we were paying significantly more to care for able-bodied adults than our seniors.
  • Policies in the WFTC that reduce the abuse of provider taxes and SDP gimmicks are projected to reduce non-Medicaid prices by up to 3.5 percent, benefiting non-Medicaid payers by $502 billion to $875 billion from 2025-2034.
    • Once fully phased in, these policies are expected to lower annual health care spending by $100 billion to $175 billion.
  • Some of the savings to non-Medicaid payers also accrue to the federal government, saving an additional $97 billion to $169 billion beyond its savings on Medicaid and reducing total federal health spending by an average of 2.9 percent to 5.1 percent, when fully phased in.
  • This isn't just savings for taxpayers; ASPE projects the changes to provider taxes and state directed payments under the WFTC could lead to reduced premiums in commercial insurance markets, making employer-sponsored insurance and Marketplace coverage more affordable for Americans than they would have been without the WFTC.

Read additional coverage on this report HERE.

The Latest
Support for the Lower Costs, More Transparency Act
Aug 13, 2026
Health
New HHS Report Depicts How the Working Families Tax Cuts Lowers Health Insurance Premiums and Hospital Prices for Americans

WASHINGTON, D.C. - This week, the U.S. Department of Health and Human Services Office of the Assistant Secretary for Planning and Evaluation (ASPE) released a report, finding provider tax and state-directed payment policies in the Working Families and Tax Cuts (WFTC) are expected to reduce health care prices by up to 3.5 percent and reduce costs in Medicaid, commercial insurance, and Medicare—noting an additional $29 billion in savings for Medicare and commercial coverage for every $100 billion in Medicaid savings. Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, and Congressman Morgan Griffith (VA-09), Chairman of the Energy and Commerce Subcommittee on Health, issued the following statement in response to ASPE's findings:

"Despite Democrat rhetoric, evidence continues to show that our Working Families Tax Cuts will protect patients by not only restoring the long-term security of the Medicaid program, but also lowering costs for patients. By ending abuses of financing gimmicks, we help save taxpayer dollars and ensure federal funding is being used for the most vulnerable.

"It's no secret that the abuse of provider tax schemes and state directed payment arrangements had become an open-ended checkbook for states to shift more and more costs to the federal government, driving unsustainable and unaccountable growth in the Medicaid program. In a new report released by the Department of Health and Human Services, not only will these policies safeguard the Medicaid program and its beneficiaries but will also lower health care prices by 3.5 percent and reduce health care spending for Americans with private commercial insurance and Medicare. Because of Republicans' commonsense policies, we are protecting our most vulnerable and lowering health care costs for all Americans," said Charimen Guthrie and Griffith

BACKGROUND:

  • Last year, the House Committee on Energy and Commerce rooted out over a trillion dollars of waste, fraud, and abuse through policies that strengthen, secure, and sustain our Medicaid program.
  • Health care provider taxes have been used to fund Medicaid supplemental payments like state-directed payments (SDPs), drawing down additional federal Medicaid funding to support higher provider rates without additional expenditures from state general funds.
  • SDPs increased considerably during the Biden Administration, with managed care organizations receiving $43 billion in payments in 2021-an amount that more than tripled to $144 billion by 2025.
  • Without the WFTC, payments were expected to exceed $300 billion by 2034.
  • By 2025, the average service covered by an SDP was compensated at 186 percent of the Medicare rate, meaning often we were paying significantly more to care for able-bodied adults than our seniors.
  • Policies in the WFTC that reduce the abuse of provider taxes and SDP gimmicks are projected to reduce non-Medicaid prices by up to 3.5 percent, benefiting non-Medicaid payers by $502 billion to $875 billion from 2025-2034.
    • Once fully phased in, these policies are expected to lower annual health care spending by $100 billion to $175 billion.
  • Some of the savings to non-Medicaid payers also accrue to the federal government, saving an additional $97 billion to $169 billion beyond its savings on Medicaid and reducing total federal health spending by an average of 2.9 percent to 5.1 percent, when fully phased in.
  • This isn't just savings for taxpayers; ASPE projects the changes to provider taxes and state directed payments under the WFTC could lead to reduced premiums in commercial insurance markets, making employer-sponsored insurance and Marketplace coverage more affordable for Americans than they would have been without the WFTC.

Read additional coverage on this report HERE.

Dive deeper on the Lower Costs, More Transparency Act:

Increases Price Transparency Throughout the Health Care System for Patients

  • Empowers patients and employers to shop for health care and make informed health care decisions by providing timely and accurate information about the cost of care, treatment, and services
  • Makes health care price information public by ensuring hospitals, insurance companies, labs, imaging providers, and ambulatory surgical centers publicly list the prices they charge patients, building upon the Trump administration price transparency rules
  • Lowers costs for patients and employers by requiring health insurers and pharmacy benefit managers (PBMs) to disclose negotiated drug rebates and discounts, revealing the true costs of prescription drugs

Addresses the Cost of Prescription Drugs

  • Lowers out-of-pocket costs for seniors who receive medication at a hospital-owned outpatient facility or doctor’s office 
  • Expands access to more affordable generic drugs 
  • Equips employer health plans with the drug price information they need to get the best deal possible for their employees

Supports Patients, Health Care Workers, Community Health Centers, and Hospitals

  • Fully pays for expiring programs that strengthen the health care system by: 
  • Supporting Community Health Centers, which are crucial for patients in rural and underserved areas
  • Supporting training programs for new doctors in communities
  • Preserving Medicaid for hospitals that take care of uninsured and low-income patients
The Latest
Americans Overwhelmingly Support Increased Transparency in Health Care
Aug 13, 2026
Health
New HHS Report Depicts How the Working Families Tax Cuts Lowers Health Insurance Premiums and Hospital Prices for Americans

WASHINGTON, D.C. - This week, the U.S. Department of Health and Human Services Office of the Assistant Secretary for Planning and Evaluation (ASPE) released a report, finding provider tax and state-directed payment policies in the Working Families and Tax Cuts (WFTC) are expected to reduce health care prices by up to 3.5 percent and reduce costs in Medicaid, commercial insurance, and Medicare—noting an additional $29 billion in savings for Medicare and commercial coverage for every $100 billion in Medicaid savings. Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, and Congressman Morgan Griffith (VA-09), Chairman of the Energy and Commerce Subcommittee on Health, issued the following statement in response to ASPE's findings:

"Despite Democrat rhetoric, evidence continues to show that our Working Families Tax Cuts will protect patients by not only restoring the long-term security of the Medicaid program, but also lowering costs for patients. By ending abuses of financing gimmicks, we help save taxpayer dollars and ensure federal funding is being used for the most vulnerable.

"It's no secret that the abuse of provider tax schemes and state directed payment arrangements had become an open-ended checkbook for states to shift more and more costs to the federal government, driving unsustainable and unaccountable growth in the Medicaid program. In a new report released by the Department of Health and Human Services, not only will these policies safeguard the Medicaid program and its beneficiaries but will also lower health care prices by 3.5 percent and reduce health care spending for Americans with private commercial insurance and Medicare. Because of Republicans' commonsense policies, we are protecting our most vulnerable and lowering health care costs for all Americans," said Charimen Guthrie and Griffith

BACKGROUND:

  • Last year, the House Committee on Energy and Commerce rooted out over a trillion dollars of waste, fraud, and abuse through policies that strengthen, secure, and sustain our Medicaid program.
  • Health care provider taxes have been used to fund Medicaid supplemental payments like state-directed payments (SDPs), drawing down additional federal Medicaid funding to support higher provider rates without additional expenditures from state general funds.
  • SDPs increased considerably during the Biden Administration, with managed care organizations receiving $43 billion in payments in 2021-an amount that more than tripled to $144 billion by 2025.
  • Without the WFTC, payments were expected to exceed $300 billion by 2034.
  • By 2025, the average service covered by an SDP was compensated at 186 percent of the Medicare rate, meaning often we were paying significantly more to care for able-bodied adults than our seniors.
  • Policies in the WFTC that reduce the abuse of provider taxes and SDP gimmicks are projected to reduce non-Medicaid prices by up to 3.5 percent, benefiting non-Medicaid payers by $502 billion to $875 billion from 2025-2034.
    • Once fully phased in, these policies are expected to lower annual health care spending by $100 billion to $175 billion.
  • Some of the savings to non-Medicaid payers also accrue to the federal government, saving an additional $97 billion to $169 billion beyond its savings on Medicaid and reducing total federal health spending by an average of 2.9 percent to 5.1 percent, when fully phased in.
  • This isn't just savings for taxpayers; ASPE projects the changes to provider taxes and state directed payments under the WFTC could lead to reduced premiums in commercial insurance markets, making employer-sponsored insurance and Marketplace coverage more affordable for Americans than they would have been without the WFTC.

Read additional coverage on this report HERE.