Senate Judiciary Chairman Urges FTC to Launch Probe Into Allegedly Anti-Competitive Contracts Between Hospitals and Insurers

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On October 10, 2018, Senate Judiciary Chairman Chuck Grassley, R-Iowa, urged the Chairman of the Federal Trade Commission (FTC) to conduct an assessment of potentially anti-competitive provisions in contracts between hospitals and insurers, such as “anti-steering” restrictions that purportedly prevent insurers from “steering” patients to providers that offer lower-priced services.

In a letter to the FTC Chairman, Senator Grassley referenced recent reports “alleging that insurers and hospital systems in the United States are entering into restrictive contracts deliberately designed to prevent consumers’ access to quality, lower cost care.”  Senator Grassley stated that if these reports were true, then “these practices undermine Congress’s efforts to lower the cost of, and increase access to, health care for millions across the country.”

Senator Grassley urged the FTC to assess the following issues related to these contractual provisions:

  • The prevalence of such provisions in the healthcare industry;
  • Whether the provisions are anti-competitive; and
  • Whether consolidation in the marketplace increases the provisions’ impact on competition.

Senator Grassley requested the FTC to provide an update on its efforts relating to this issue by October 31, 2018.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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