National Taxpayers Union's Pete Sepp Warns of Medicare Insolvency and Pushes Bipartisan Reform to Cut Waste

On this episode of the Health Policy Podcast, Brian Hyde speaks with Pete Sepp, President of the National Taxpayers Union, about the accelerating financial crisis facing Medicare and other federal healthcare programs  Sepp outlines how Medicare Part A is projected to become insolvent in 2033—just one year after Social Security's trust fund is expected to fall short—triggering an automatic 11% cut in hospital insurance benefits unless Congress acts. He explains that healthcare spending now accounts for more than a quarter of federal expenditures and continues to grow, even after recent reforms to Medicaid. A central focus of the conversation is the bipartisan "No Upcode Act," introduced by Senators Bill Cassidy and Jeff Merkley, which aims to curb an estimated $40 billion in annual Medicare Advantage overpayments caused by insurers overstating patient diagnoses  Sepp describes how the bill would require stronger verification of diagnoses—such as in-person doctor visits and multi-year data review—to protect both taxpayers and patients. Beyond Medicare, Sepp warns that Social Security and even the Highway Trust Fund face similar fiscal countdowns, arguing that lawmakers elected this cycle will confront unavoidable funding cliffs during their terms  The episode explores the intersection of healthcare policy, federal spending, and economic freedom—and the urgent need for reform before automatic cuts or tax hikes become the only remaining options.