Digital Health Gets a Dose of Reality

From EHR challenges to Medicare payment gaps, policymakers confront the barriers to health tech adoption.

⚡️ NIMITZ HEALTH NEWS FLASH ⚡️ 

Health at Your Fingertips: Harnessing the Power of Digital Health Data

House Ways & Means Subcommittee on Health

June 25th, 2025 (recording linked here)

WITNESS & TESTIMONY

HEARING HIGHLIGHTS

EHR Interoperability and Federal Infrastructure

The hearing emphasized the need to strengthen EHR interoperability, especially for small and rural providers. Epic’s Community Connect was cited as a model for expanding access, but concerns were raised about the impact of federal workforce cuts at AHRQ and other agencies that have supported interoperability standards and digital health infrastructure.

Health Data Privacy Beyond HIPAA

Witnesses flagged growing risks around health data collected outside HIPAA’s scope. Entities like law firms and app developers can legally access and use sensitive patient data without clear consent or regulation, including for lawsuit targeting. This loophole is increasingly urgent as wearables and consumer health apps become more common.

Rural Adoption and Payment Stability for Digital Tools

Many rural clinics and providers struggle to adopt digital health tools due to high upfront costs and unstable reimbursement. Programs like remote patient monitoring (RPM) face cuts unless Congress acts to extend payment policies. Without support, smaller providers may abandon these services, reducing access for vulnerable populations.

MEMBER OPENING STATEMENTS

  • Chair Buchanan (R-FL) opened the hearing by expressing concern over America’s growing chronic disease crisis despite high healthcare spending. He cited alarming obesity rates among children and adults and emphasized the military readiness implications of these trends. Buchanan highlighted the potential of digital health tools, such as wearables and remote patient monitoring, to improve outcomes, reduce costs, and encourage healthier lifestyles. He underscored the need for data privacy and expressed hope that digital health innovation would help reverse chronic disease trends in the U.S.

  • Ranking Member Doggett (D-TX) praised healthcare innovation, noting Austin’s emergence as a health tech hub. He raised concerns about access, warning that 16 million Americans may soon lose health insurance under proposed federal policy changes. He criticized deep funding cuts to Medicaid and Medicare, arguing these would devastate safety-net providers and vulnerable populations. Doggett called for ensuring that all Americans—not just the insured or affluent—can benefit from emerging health technologies.

WITNESS OPENING STATEMENTS

  • Dr. Holmes shared her experience as a scientist, athlete, and coach, emphasizing the power of wearable biometric data to transform individual and public health. She highlighted Whoop’s role in helping users understand their health data to drive behavioral change and resilience. She detailed Whoop’s contributions to health research, such as early infection detection and studies on burnout and GLP-1 use. Holmes concluded by urging Congress to preserve innovation-friendly policies so wearable technology can continue advancing proactive and accessible care.

  • Mr. Phelps described the challenges small businesses face with employer-sponsored insuranceb and shared how his company implemented a wellness program to proactively improve employee health. He explained that their model focuses on education, habit change, and optional participation, not tracking. He argued that the value of prevention is often invisible but critical, and that more tools—not mandates—should be made available to support employers like him.

  • Mr. Zengilowski emphasized the importance of remote patient monitoring (RPM) in delivering real-time, life-saving care and reducing hospitalizations. He described how RPM modernizes traditional care by connecting patients with FDA-cleared devices and enabling immediate clinician feedback. He cited data showing significant reductions in hospitalizations and costs, especially for chronic heart failure patients. Zengilowski urged policymakers to modernize Medicare payment structures for RPM and support AI-enabled data tools.

  • Dr. Gerhart highlighted how Epic’s technology connects patients, clinicians, and devices to improve care and reduce costs, especially for rural and underserved communities. She detailed how AI tools are easing physician burdens, improving diagnostic accuracy, and increasing early cancer detection rates. Gerhart explained that Epic is leading in interoperability, facilitating billions of data exchanges across platforms to support patient care. She called for stronger, uniform privacy protections and closing gaps in HIPAA to ensure that all health data—regardless of holder—is safeguarded.

  • Ms. Corlette criticized the House-passed HR 1 bill, warning it would drastically increase the uninsured rate, slash Medicaid and ACA coverage, and impose new bureaucratic barriers. Corlette pointed to projected premium spikes across multiple states and reductions in provider payments under statutory PAYGO rules. She concluded by stressing that health tech is meaningless without affordable coverage, and that HR 1 would only widen access gaps.

QUESTION AND ANSWER SUMMARY

  • Chair Buchanan asked about the future of wearable health, expressing optimism about prevention-focused care. Dr. Holmes emphasized that wearables help users understand health baselines and lifestyle impact, and said combining physiological data with biomarkers will enable earlier disease detection.

    Chair Buchanan then asked how to expand small business wellness programs. Mr. Phelps encouraged demystifying employer-health conversations, leveraging local resources, and highlighted that effective wellness initiatives can be low-cost and culturally transformative.

  • Ranking Member Doggett asked about Medicare sequestration under HR 1, warning it undermines Trump’s pledges to protect Medicare and Medicaid. Ms. Corlette said the bill would trigger 4% annual cuts to providers, particularly devastating for rural areas, potentially forcing closures and reducing services.

    Ranking Member Doggett also raised NIH and NSF funding cuts, citing the impact on University of Texas research. Ms. Corlette confirmed NIH cuts would halt trials, reduce FDA device approvals, and damage the innovation pipeline—affecting future health technologies like wearables and RPMs.

  • Rep. Smith (R-NE) criticized unsustainable healthcare spending and praised RPM as a tool for improving outcomes and efficiency. He asked about rural barriers to adoption. Mr. Zengilowski said broadband is less of a concern now, but rural providers face lower Medicare reimbursement. He highlighted H.R. 3108 as a policy fix to support RPM expansion in underserved areas.

  • Rep. Thompson (D-CA) warned that digital health tools are meaningless without coverage, citing the GOP bill’s projected loss of care for 16 million Americans. He questioned about data privacy and Oracle-linked concerns; Dr. Gerhart urged expanding HIPAA to cover all entities handling patient data. Ms. Corlette added that the bill would limit access to digital care and raise employer-based cost-sharing, especially hurting low-income and rural patients.

  • Rep. Murphy (R-NC) raised concerns about liability from constant data monitoring and called HIPAA both excessive and inconsistent. On interoperability, he criticized Oracle’s VA delays; Gerhart said Epic now exchanges 700M records monthly, half with non-Epic systems like Oracle.

  • Rep. Chu (D-CA) warned HR 1 would raise premiums and cut coverage, making wearables unaffordable for people like her constituents. Ms. Corlette said most would delay care or go without.

    Rep. Chu also flagged privacy risks in period-tracking apps post-Dobbs, asking about HIPAA gaps. Ms. Corlette warned sensitive data could be misused and said women would be hit hardest by the bill’s coverage cuts.

  • Rep. Kelly (R-PA) yielded to Rep. Murphy, who reiterated that government cannot and should not fund care for ineligible populations.

    Rep. Murphy argued that some Medicaid recipients and recent immigrants are improperly receiving benefits, calling for stricter eligibility enforcement and defending cuts as necessary fiscal discipline.

  • Rep. Hern (R-OK) voiced strong support for digital therapeutics and promoted his bipartisan bill (H.R. 3288) to expand coverage for FDA-authorized tools treating conditions like PTSD.

    Rep. Hern asked how at-home tools affect outcomes. Mr. Zengilowski said remote monitoring boosts adherence through real-time support and intervention, citing a case where a patient couldn’t open a pill bottle until staff intervened.

  • Rep. Davis (D-IL) backed telehealth but voiced concerns about data privacy and surveillance. He asked how HR 1 would affect access. Ms. Corlette said the bill would strip coverage from eligible people via red tape and cost-sharing, worsening outcomes and raising ER use and system-wide costs.

  • Rep. Miller (R-WV) said wearables can improve rural care access. Dr. Holmes cited a study where wearables detected preterm birth risk early.

    On privacy, Mr. Zengilowski clarified that RPM vendors using FDA-cleared devices are HIPAA-covered and invest in IT security. Dr. Holmes added that fall prevention starts with strength training and public education.

  • Rep. Fitzpatrick (R-PA) asked how wearable data in MyChart improves chronic care. Dr. Gerhart cited early diabetes interventions and a partnership with Abbott to integrate glucose data into EHRs for trend monitoring.

    On privacy, Dr. Gerhart urged expanding HIPAA to all entities handling health data and described Epic’s breach protocols. Mr. Zengilowski added that his firm invests in cybersecurity and regular penetration testing to protect patient data.

  • Rep. Evans (D-PA) warned GOP budget cuts would reduce access to Medicare-supported tech like home telecare. Ms. Corlette said HR 1 could cause 16 million to lose coverage, driving up costs and worsening outcomes. Dr. Holmes emphasized that digital tools empower individuals to manage health through behavior tracking, helping prevent chronic conditions.

  • Rep. Moore (R-UT) criticized delays between FDA clearance and Medicare coverage for new tech and backed reviving M-CIT policies. Mr. Zengilowski said delays hurt outcomes and quality of life.

    Rep. Moore pushed expanding HSA eligibility to cover wearables; Dr. Holmes agreed broader access would improve public health and reduce long-term costs.

  • Rep. Tenney (R-NY) praised HSAs and wearables, especially for rural care. She asked how Epic ensures interoperability; Dr. Gerhart said Epic supports 750+ apps and handled 111 billion data exchanges last year.

    Rep. Tenney discussed RPM access in rural areas—Mr. Zengilowski said his company supplements tech with clinical staff to offset shortages and urged support for HR 3108 to stop reimbursement cuts.

  • Rep. Horsford (D-NV) criticized GOP health cuts, citing 16 million projected to lose coverage under HR 1. Ms. Corlette said the bill would slash provider revenue by $1 trillion, increase uncompensated care by $278 billion, and force rural hospitals to cut services or close, raising costs for everyone, including the insured.

  • Rep. Kustoff (R-TN) discussed HR 3108. Mr. Zengilowski said rural providers face steep pay gaps, making RPM unsustainable. He warned many may drop the service entirely.

    Rep. Kustoff also asked about CGMs for non-diabetics; Dr. Gerhart said they’re useful for behavior change, even without a diagnosis, if patients use the data to improve health.

  • Rep. Steube (R-FL) highlighted rural access and privacy concerns, asking about wearables in small businesses. Mr. Phelps said wellness programs improved culture and reduced absences. Dr. Holmes noted senior adoption of wearables depends on education and personalized feedback. Dr. Gerhart said Epic supports rural EHR adoption through its Community Connect program.

  • Rep. Sanchez (D-CA) raised privacy concerns, citing law firms using health data without HIPAA oversight and questioned Palantir’s role in federal health storage. Dr. Gerhart confirmed many third-party apps are outside HIPAA protections.

    Rep. Sanchez warned that tech won’t help uninsured patients and, with Ms. Corlette, emphasized that ACA and Medicaid cuts would raise the uninsured rate and increase healthcare costs.

  • Rep. Beyer (D-VA) stressed the role of digital tools in reducing misdiagnosis and warned of coverage losses under GOP health cuts. Ms. Corlette said red tape and higher costs would follow.

    Rep. Beyer praised AHRQ and asked about interoperability’s value; Dr. Gerhart said full patient histories are critical for care. Ms. Corlette added that NIH and FDA cuts would slow innovation and weaken the health workforce.