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WASHINGTON, D.C. - Last December, the Department of Health and Human Services (HHS) Office of Inspector General (OIG) released a report showing that since 2016, OIG has conducted 18 audits, which revealed Medicaid agencies improperly paid states nearly $289 million on behalf of deceased enrollees.

The audit outlined in HHS OIG’s report was conducted from July 1, 2021, through June 30, 2022. After reviewing a stratified random sample of 100 capitation payments from the nearly 410,000 capitation payments covered by the audit, HHS OIG found that Medicaid agencies paid for deceased individuals in 99 of the 100 sample capitation payments.

During that same one-year period, Medicaid paid over $207 million to insurance companies for people who had already died.

This is far from the first accounting of massive fraud found in our federal health programs. In July of 2025, the Centers for Medicare & Medicaid (CMS) announced that they had identified and were removing 2.8 million duplicative enrollees in two or more Medicaid and/or Affordable Care Act (ACA) exchange plans after conducting an analysis of 2024 enrollment data.

In September of 2025, the Congressional Budget Office (CBO) found that Democrat policies have facilitated a years-long, massive cover-up to defraud American taxpayers in order to subsidize waste, fraud, and abuse in federal health programs, including using loopholes to provide free health care to illegal immigrants. The agency found that Democrat policies have led to at least 2.3 million fraudulent enrollees in Obamacare.

And most recently, in December, GAO conducted covert operations by creating fictitious identities with fake or never issued Social Security numbers (SSN) and still received taxpayer-subsidized Obamacare coverage. One hundred percent of fake applicants were approved by the ACA Marketplace in late 2024 and 90 percent of fake applicants received coverage in 2025. Experts estimate the federal government may be spending as much as $27 billion a year in taxpayer dollars on improper Obamacare enrollments.

Thanks to President Trump’s Working Families Tax Cuts signed into law on Independence Day last year, Republicans implemented commonsense guardrails to protect Americans and crack down on the Democrat-enabled waste, fraud, and abuse pervading our health care system.

Our law takes action to remove duplicative and deceased enrollees from the Medicaid rolls and prohibit states from paying multiple managed care organizations for wasteful, duplicative health care coverage. We believe that taxpayer dollars should be used to benefit our most vulnerable Americans.

To that end, the Committee has sent letters to state and federal officials requesting additional information on Medicare and Medicaid fraud. For example, the Committee opened an investigation into the massive fraud schemes in Minnesota's Medicaid programs; and just last week, our Subcommittee on Oversight and Investigations held a hearing exploring the egregious Medicare and Medicaid fraud schemes that are happening nationwide.

Over the past several years, Democrat Administrations have allowed waste, fraud, and abuse across the American health care system to explode, ultimately driving up costs, hurting American families, and draining taxpayer dollars. Republicans are committed to finding solutions that restore affordability, fairness, accountability, and the rule of law across our health care system.

Read the full report here.

WASHINGTON, D.C. – Today, Congressman Morgan Griffith (VA-09), Chairman of the Subcommittee on Health, led a hearing titled Lowering Health Care Costs for All Americans: An Examination of the Prescription Drug Supply Chain, featuring witness testimony from representatives across the entire prescription drug supply chain.

“I’m proud of this subcommittee’s work, but there is still more to be done—which is why I was proud to continue building on our affordability series through today’s hearing with representatives across the entire prescription drug supply chain,” said Chairman Griffith. “Hearing from these witnesses on how to best navigate this complex web helps Congress make better-informed policy decisions so that we are able to meaningfully lower the cost of care for all American patients.”

Watch the full hearing here:

Below are key excerpts from today’s hearing:

Congressman Troy Balderson (OH-12): “I represent a very rural district, and not only is access to health care a problem, but access to pharmacy services is growing more challenging as well. A 2025 FTC report examined PBM pharmacy contracting practices and found that internal PBM documents suggested rural pharmacies are often forced to accept ‘take it or leave it’ reimbursement rates. Could you elaborate on the specific challenges rural pharmacies face when negotiating contracts with PBMs, and how these practices may affect access to care in rural communities?” Mr. Hoey: “‘Take it or leave it’ contracts are part and parcel of the so-called negotiations between pharmacies and PBMs. PBMs hold all the leverage. They hold the patient lives. So, if a pharmacy does not sign whatever is put in front of them—with very little negotiation—I’m sure our friends at PMA will say there’s robust negotiation, but in reality, it’s a take-it-or-leave-it contract. These pharmacies are often forced to sign contracts that pay them below their cost to acquire the drug. And yes, rural pharmacies, as well as pharmacies in underserved areas, urban areas, and suburban communities, are all taking contracts in which they are paid below cost. As a result, 5,000 pharmacies have gone out of business in the last four years alone. That’s 5,000 fewer pharmacy choices in just four years. It’s a systemic problem. In fact, pharmacy deserts—especially in your district in Ohio and across the country—are growing because of these ‘take it or leave it’ contracts.”

Congresswoman Kat Cammack (FL-03): “Three companies control the majority of drug distribution in the United States, and many are vertically integrated to control each phase of the prescription drug supply chain—from manufacturer to pharmacy. Does consolidating the prescription drug industry lower prices for patients? Yes or no?” Mr. Davis: “It has the potential to, yes.” Congresswoman Kat Cammack: “Respectfully, your own industry report projects that the ‘big three’ will generate $871 billion in revenue this year—after four straight years of double-digit growth. So, if this is potentially saving patients money, why are revenues growing so fast, and where are patients seeing the savings?”

Congressman Michael Rulli (OH-06): “President Trump recently launched TrumpRx, a revolutionary platform aimed at bringing price transparency and competition back to the drug market. My constituents tell me every day about how much they dread going to the pharmacy because they never know what price they’re going to pay at the counter; it always changes. Then, you have brand-name versus [generic]... How have your members reacted to the transparent pricing of brand-name [drugs] on TrumpRx?” Mr. Marin: “The PBM industry is all about transparency. We are enhancing it for our customers every day, particularly for employers. The bill Congress passed a couple of weeks ago takes [transparency] to another level—we’re happy with that. We support and applaud the mission of the administration’s goal with TrumpRx.”

WASHINGTON, D.C. – Congressman Morgan Griffith (VA-09), Chairman of the Subcommittee on Health, delivered the following opening statement at today’s hearing titled Lowering Health Care Costs for All Americans: An Examination of the Prescription Drug Supply Chain.

Subcommittee Chairman Griffith’s opening statement as prepared for delivery:

“First, I want to recognize the bipartisan bill that we were able to pass last week that included many important health care provisions and lowered health care costs for all Americans.

“Today, we will discuss health care costs and patient access challenges by examining affordability across the entire pharmaceutical supply chain.

“I’m proud of this subcommittee’s work, but there is still more to be done, which is why I am eager to continue building on our affordability series with today’s hearing that comes after we heard from insurance executives last month.

“We now will hear from stakeholders who are part of the complex pharmaceutical drug supply chain.

“To regular people, this system may seem simple: a disease is researched and a treatment is developed, then that treatment is manufactured and distributed to a hospital, pharmacy, or other health entity before it is dispensed to a patient.

“However, there are many more layers that are involved in this process that affect how a drug gets to a patient and how that drug is priced.

“One of the most frustrating aspects of the supply chain is that it operates in a blackbox.

“Luckily, we have witnesses here to provide their perspectives and shine a light on the process.

“Do each of these entities in front of us today play a role in getting the drug to a patient? Yes.

“Are there too many cooks in the kitchen at times? Probably so.

“Today is a great opportunity for Congress to get a glimpse and see what is happening, and look for ways to help make prescription drugs more affordable.

“In 2017, this same subcommittee held a hearing similar to this one.

“A lot has changed since then.

“I am glad we are reexamining what we learned from that hearing to continue working towards what we all want: lowering costs for patients while ensuring that America remains a leader in pharmaceutical innovation.

“We have PhRMA and BIO in front of us who can speak to the intricacies that go into researching, developing, and pricing a drug on the market.

“We will also get the perspective of generic drugs from the Association for Accessible Medicines who can speak on the issues in that area.

“We also have the Pharmaceutical Care Management Association here who is the trade association that represents pharmaceutical benefit managers, or PBMs.

“In theory, PBMs manage prescription drug benefits for insurance companies, employers, and others.

“What we heard in our hearing last month is that insurance companies own many PBMs.

“The largest three insurance owned PBMs control over 80 percent of the market.

“How they manage these benefits is a mystery and can lead to higher drug prices.

“However, just last week, led by Representative Buddy Carter from Georgia, Congress passed and the President signed into law the biggest PBM reform package in history.

“These bills will bring more transparency into this system, lower costs, and allow for more access to medicines.

“The Healthcare Supply Chain Association is here on behalf of Group Purchasing Organizations, or GPOs, which act as intermediaries between manufacturers and providers.

“In front of us is also the Healthcare Distribution Alliance, who is involved in the distribution of prescription drugs along the supply chain.

“I am looking forward to hearing from the National Community Pharmacists Association who is before us today as well, since they represent community pharmacists.

“These community pharmacies serve a critical role in bringing care to patients, especially in rural areas; yet, many have had to sadly close their doors in recent years due to factors we will discuss today.

“The ERISA Industry Committee is also here to discuss their point of view for employers when it comes to high costs, as well as decisions they make based on those costs.

“Each of these different entities play a unique role in how a drug finally gets to a patient.

“In this meeting, we will hear from these witnesses on how to navigate this complex web on behalf of the American people.

“I look forward to the discussion.”

WASHINGTON, D.C. – This week, the House Committee on Energy and Commerce is holding one Subcommittee Hearing and two Subcommittee Markups. Read more below.

SUBCOMMITTEE MARKUP: The Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade will hold a markup of twelve bills to strengthen automotive safety, affordability, and leadership.

• DATE: Tuesday, February 10, 2026
• TIME: 10:15 AM ET
• LOCATION: 2123 Rayburn House Office Building

SUBCOMMITTEE MARKUP: The Energy and Commerce Subcommittee on Communications and Technology will hold a markup of a bill to reauthorize FirstNet.

• DATE: Tuesday, February 10, 2026
• TIME: 2:00 PM ET
• LOCATION: 2123 Rayburn House Office Building

SUBCOMMITTEE HEARING: The Energy and Commerce Subcommittee on Health is holding a hearing on exploring the role that the prescription drug supply chain plays in health care affordability.

• DATE: Wednesday, February 11, 2026
• TIME: 10:15 AM ET
• LOCATION: 2123 Rayburn House Office Building

WASHINGTON, D.C. – Today, Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, issued a statement after President Trump signed H.R. 7148 into law this week, which included the Mikaela Naylon Give Kids a Chance Act.

“H.R. 1262, the Mikaela Naylon Give Kids a Chance Act, builds on current programs to accelerate research and drug development for rare pediatric diseases, including cancer,” said Chairman Guthrie. “The bill reauthorized the Rare Pediatric Disease Priority Review Voucher Program that has led to over 50 new treatment approvals for nearly 40 different rare pediatric diseases, many of which had no treatment options prior to the existence of the program. The positive impact is profound for patients, and I am grateful to the many champions of this legislation and their commitment to promoting research and addressing gaps in pediatric therapeutics.”

Background:

• H.R. 1262, the Mikaela Naylon Give Kids a Chance Act, was reported to the full House from the Committee on Energy and Commerce, as amended, by a vote of 47 yeas and 0 nays and passed the full House by voice vote.
• H.R. 1262 was incorporated into H.R. 7148, the Consolidated Appropriations Act of 2026, which was passed by the full House on February 3, 2026, and signed into law by President Trump.

The Mikaela Naylon Give Kids a Chance Act:

• Reauthorizes the FDA Rare Pediatric Disease (RPD) Priority Review Voucher (PRV) Program through Fiscal Year 2029;
• Provides the Food and Drug Administration (FDA) with additional authority to require pediatric cancer trials for new combinations of drug therapies;
• Authorizes the FDA to take enforcement action against companies that fail to meet pediatric study requirements under the Pediatric Research Equity Act (PREA);
• Directs the FDA to establish an office in an Abraham Accord country to enhance facilitation with the agency; and
• Requires FDA to disclose to certain generic drug applicants if any ingredients cause a drug to be quantitatively or qualitatively different from the listed drug, speeding up patients access to more affordable medications.

WASHINGTON, D.C. – Just one day after President Trump signed into law the most comprehensive pharmacy benefit manger (PBM) reform in American history, the Federal Trade Commission (FTC) reached a historic settlement with one of the nation’s largest PBMs, Express Scripts, Inc., along with affiliated entities (ESI collectively), requiring them to change current business practices to drive down drug costs for patients and employers.

The settlement directly addresses many of the harmful pharmaceutical middlemen practices that the House Committee on Energy and Commerce has called attention to for years and supports a key commitment of President Trump’s new health care agenda, The Great Healthcare Plan, to lower prescription drug prices.

Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, issued the following statement:

“This week has marked many successes when it comes to transparency and affordability of prescription drugs for American patients,” said Chairman Guthrie. “The House Committee on Energy and Commerce supports President Trump’s efforts and will continue this work by calling in representatives across the entire prescription drug supply chain next week to continue our commitment to lowering the cost of care for all Americans. This is just another way Republicans are working to implement meaningful relief for American families when it comes to health care affordability.”

Background:

ESI, under the FTC’s proposed consent order, has agreed to:

• Stop preferring on its standard formularies high wholesale acquisition cost versions of a drug over identical low wholesale acquisition cost versions;
• Provide a standard offering to its plan sponsors that ensures that members’ out-of-pocket expenses will be based on the drug’s net cost, rather than its artificially inflated list price;
• Provide covered access to TrumpRx as part of its standard offering upon relevant legal and regulatory changes;
• Provide full access to its Patient Assurance Program’s insulin benefits to all members when a plan sponsor adopts a formulary that includes an insulin product covered by the Patient Assurance Program unless the plan sponsor opts out in writing;
• Provide a standard offering to all plan sponsors that allows the plan sponsor to transition off rebate guarantees and spread pricing;
• Delink drug manufacturers’ compensation to ESI from list prices as part of its standard offering;
• Increase transparency for plan sponsors, including with mandatory, drug-level reporting, providing data to permit compliance with the Transparency in Coverage regulations, and disclosing payments to brokers representing plan sponsors;
• Transition its standard offering to retail community pharmacies to a more transparent and fairer model based on the actual acquisition cost for a drug product plus a dispensing fee and additional compensation for non-dispensing services;
• Promote the standard offerings to plan sponsors and retail community pharmacies; and
• Reshore its group purchasing organization Ascent from Switzerland to the United States, which will bring back to the United States more than $750 billion in purchasing activity over the duration of the order.
• The settlement is projected to ** save American patients $7 billion ** in out-of-pocket costs for prescription drugs over a decade.

Click HERE to read the full settlement.

WASHINGTON, D.C. – For years, the House Committee on Energy and Commerce has been committed to cracking down on the practices of pharmacy benefit managers (PBMs) that don’t benefit patients. This week, President Trump signed into law these long-awaited and historic reforms for prescription drug middlemen in H.R. 7148, the Consolidated Appropriations Act of 2026.

Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, issued the following statement on the importance of this significant piece of legislation when it comes to lowering costs at the pharmacy counter:

“Over the past few years, this Committee has led on many legislative solutions which work to continue delivering affordable and high-quality health care for the American people and crack down on predatory practices of PBMs. I was pleased to see those solutions signed into law by President Trump,” said Chairman Guthrie. “These policies increase transparency at the pharmacy counter and hold PBMs accountable, which will result in real savings for American patients. I am proud that this Committee has played such a crucial role in shaping a more affordable and transparent health care system. I am grateful to President Trump and my colleagues for their commitment to lowering the cost of care for all American patients.”

The legislation included a myriad of PBM reforms that the Committee has been working on furthering for several years. Included in the package were PBM reforms that:

• Increase transparency and protect American patients and businesses from getting ripped off by questionable drug pricing and rebate manipulation tactics;
• Delink the price of Medicare Part D drugs from a PBM’s compensation, instead paying a flat fee to middlemen and ensuring rebates are passed through to plan sponsors; and
• Safeguard independent pharmacies and seniors’ access to medications by codifying requirements that Medicare Part D plan sponsors contract with any willing pharmacy—not just the pharmacy owned by their insurance conglomerate.

The first policy highlighted in President Trump’s new health care agenda, The Great Healthcare Plan, is a commitment to lowering prescription drug prices.

WASHINGTON, D.C. – Today, Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, and Congressman Morgan Griffith (VA-09), Chairman of the Subcommittee on Health, announced a hearing titled Lowering Health Care Costs for All Americans: An Examination of the Prescription Drug Supply Chain.

“This marks the second hearing in our health care affordability series, confirming Republicans’ commitment to meaningfully lowering the cost of care for American families,” said Chairmen Guthrie and Griffith. “After hearing big insurance companies pledge to do more for American patients, we are continuing our commitment to the American people by calling in representatives across the entire prescription drug supply chain—pharmaceutical manufacturers, distributors, and providers—to examine the root drivers of prescription drug costs and ways to keep them both accessible and affordable. We look forward to hearing from the panelists on potential solutions to lower the cost of care for all Americans.”

Subcommittee on Health hearing titled Lowering Health Care Costs for All Americans: An Examination of the Prescription Drug Supply Chain.

WHAT: Subcommittee on Health hearing on exploring the role that the prescription drug supply chain plays in health care affordability.

DATE: Wednesday, February 11, 2026

TIME: 10:15 AM ET

LOCATION: 2123 Rayburn House Office Building

This notice is at the direction of the Chairman. This hearing will be open to the public and press and will be livestreamed at energycommerce.house.gov. If you have any questions about this hearing, please contact Annabelle Huffman with the Committee staff at Annabelle.Huffman@mail.house.gov. If you have any press-related questions, please contact Katie West at Katie.West@mail.house.gov.

WASHINGTON, D.C. – In case you missed it, the Orrin G. Hatch Foundation’s 2025 Hatch Center Policy Review featured an essay by Congressman Brett Guthrie (KY-02), Chairman of the House Committee on Energy and Commerce, titled Dominance, Deployment, and Safeguards: The Path for American AI Leadership.

In the essay, Chairman Guthrie warns that America risks falling behind China in artificial intelligence and outlines a strategy to strengthen U.S. innovation, secure supply chains, and expand global leadership.

In Case You Missed It:

“One of the defining traits of the American experiment has been a commitment to exploring the unknown. From the early explorers who first landed in the Americas to the modern technology industry that has placed a powerful computer in the pocket of every American, we are a nation of trailblazers.

“What makes this moment unique is the pending threat to America’s leadership in artificial intelligence (AI) technology by the People’s Republic of China (PRC) and Chinese Communist Party (CCP)–backed companies, many of which have developed advanced technologies nearly at parity with that of American AI companies. Knowing that the AI revolution will define economic growth and global competitiveness for the next century, the United States must choose to innovate.

“The stakes couldn’t be higher. China already deploys next-generation technologies to advance many of the regime’s most sinister goals focused on enhancing the power of its Orwellian surveillance state utilizing advanced computing. Even more concerning to the American public is the threat of an adversary’s technology stack serving as the building blocks for future advancements or as a strategic chokehold. For example, we have unfortunately learned this lesson the hard way through Chinese bottlenecks related to telecommunications equipment and critical mineral mining and processing.

“Strengthening our supply chains is an area where Republicans and Democrats largely agree. Even the Biden Administration took dramatic action to address national security risks from autonomous and connected vehicles to prevent cars and trucks built by CCP-aligned manufacturers from operating in the United States.

“President Trump has also been crystal clear: American supply chains can no longer rely on our adversaries’ goodwill. China will use any economic and technological leverage over Americans and the products we use if given the opportunity. The ongoing threat of China doesn’t just call for an agenda that restricts the aggression of the PRC, but also an agenda that promotes American innovation at home and abroad.

“At the House Committee on Energy and Commerce, we have three pillars that guide our approach to AI: dominance, deployment, and safeguards.

“For the United States to be dominant in AI, we must be the ones to actually develop and deploy these new technologies at scale. When I talk with business leaders, they tell me we have the brainpower and the capital necessary to compete. However, we still need to increase our energy production to meet rising electricity demand, and we need to ensure our regulatory environment is structured to meet this moment.

“China has chosen the path of top-down government control to drive its AI industry. While this strategy affords the CCP some advantages, the American model of bottom-up, free-market capitalism has long been the engine of innovation for the world, and it is more efficient in the long run.

“Unfortunately, our allies across the Atlantic have taken the opposite approach and made the mistake of racing to heavily regulate technologies, slowing innovation as a result. Onerous, conflicting, and confusing regulations are suffocating European technology companies and effectively grounding the AI industry there before it can even get off the ground.

“And to those who recommend America follow that path, I would remind you: We are not in a race with Europe to regulate. We are in a race with China to innovate.

“A patchwork of state laws here at home would have the same effect, stalling AI development and deployment and providing our adversaries with opportunity to advance, excluding Americans from the benefits of a new technological revolution founded on fundamentally Western values. It is vitally important for American technology companies to be the ones setting global technology standards for the next generation of tools and systems.

“President Trump’s AI Action Plan includes a range of policies to put us back on track to export a full American stack of AI products and services to our allies. Prioritizing the export of American products and services helps embed American-driven technical standards in global markets, expand our economic influence, and strengthen our national security.

“But maintaining global leadership cannot occur without deploying energy and broadband infrastructure at scale. By consuming enormous amounts of electricity to power vast networks of computers, AI data centers effectively convert energy into intelligence, and at a scale we’ve never seen before.

“The U.S. is blessed with an abundant supply of natural resources that can be leveraged to generate the baseload, dispatchable electricity necessary to power data centers, broader electrification efforts, and advanced manufacturing. But we need the right approach at the federal level to seize this moment, and building the energy infrastructure to power the future is the first step.

“But we also need to look at the broad application of AI technologies and the promise of benefits for consumers that span our entire economy. This year the Committee has already held hearings across our wide jurisdiction demonstrating the ways AI can improve the everyday lives of Americans.

“For example, AI technologies can help to limit the frequency and duration of network blackouts, meaning better coverage in cases of emergencies or cyberattacks. After an expansive operation to cripple telecommunications in New York City was linked to China this fall, this could mean the difference between life and death.

“Autonomous vehicles are on track to have the same effect. The National Safety Council estimated that Advanced Driver Assistance Systems could save hundreds of thousands of lives in the coming decades. Even setting aside the radical improvements in safety, AI-supported vehicles will offer elderly Americans and people with disabilities new options for independence.

“In health care, AI can expedite the repetitive, administrative processes that slow treatment and research, freeing providers to focus on their core skills treating patients. Supporting—not replacing—health care professionals has long been a critical priority for Congress, and artificial intelligence may represent a generational opportunity to advance those efforts.

“You may see a theme emerging: AI can make the world safer and workers more productive. But with that goal in mind, we also recognize the need for narrowly tailored protections to address new and unexpected harms. The TAKE IT DOWN Act—which was signed into law earlier this year—is a perfect example of Congress’s ability to provide guardrails where existing law does not suffice. Bipartisan majorities in Congress worked closely with the President and First Lady Melania Trump to target the spread of sexually exploitative, non-consensual AI images, filling gaps in the law related to emerging technologies.

“With AI advancements continuing to permeate the digital economy, American families deserve tools as sophisticated as the platforms their kids are using. Modern challenges require modern protections, which is why the Energy and Commerce Committee is also working to make the internet safer for kids as AI technologies increasingly shape online experiences.

“Similarly, Americans of all ages should be entitled to commonsense data privacy protections, especially in the era of large language models that use vast amounts of data to train AI algorithms. Passing one national, comprehensive data privacy bill—so your privacy protections do not change crossing state lines—would be a critical step toward restoring trust online, without unduly hurting American entrepreneurs.

“Artificial intelligence is already helping raise the tide so every American can benefit. Continuing that momentum requires commitments and intentional decisions by the leaders of industry, government, and civil society. Challenges will inevitably arise, but that has never stopped our nation from innovating, creating, and growing before.

“The rest of this century will either belong to the United States and its allies or China. If we cede the technological edge, we risk losing our ability to expand our influence abroad and will provide a platform for China to expand its authoritarian state and stifle human freedom.

“The strong U.S. economy and our workers are the greatest assets we have. As long as we choose to embrace those strengths instead of holding ourselves back, America will continue to succeed. Our leadership has undoubtedly made the world stronger and more prosperous in recent decades, and we don’t plan on stopping now.”