On Wednesday, members of the House Budget Committee from both Republican and Democratic parties discussed the high cost of healthcare. They agreed on a few points, including the need to address healthcare consolidation, which is when large companies merge and reduce competition. This is a new perspective for some Republicans. Chairman Jodey Arrington from Texas mentioned that there are issues with consolidation in smaller communities, and he is open to finding common ground with Democrats to address this issue. Democrats have long been against corporate consolidation, as it can lead to higher prices for consumers. However, Republicans are now also concerned about this issue, especially as they face public pressure to lower healthcare costs. More than 20 million Americans who receive financial help to pay for their health insurance plans under the Affordable Care Act (ACA) are facing higher premiums this year. About 4 million of these people may become uninsured. The U.S. spends a lot on healthcare, with spending reaching $5.3 trillion in 2024, up 7.2% from the year before. This is a concern because healthcare’s share of the nation’s overall economy has also risen. Consolidation is a major driver of rising healthcare spending. The U.S. healthcare industry is highly consolidated, with a few dominant health systems or insurers controlling most markets in a given region. This is a growing concern for policymakers, as it is directly linked to higher healthcare prices without a commensurate improvement in patient outcomes. Experts testified that Congress should start by breaking up the monopolies in the healthcare industry. Both Democrats and Republicans agreed on the need to address consolidation, but breaking up healthcare conglomerates is a difficult task. Other areas with bipartisan support, like increasing price transparency and cracking down on pharmacy benefit managers (PBMs), would be easier to enact into law. However, experts say that these piecemeal actions are unlikely to significantly move the needle on healthcare affordability.