November 4, 2021

New bill aims to clamp down on hospital anti-competition tactics like ‘all-or-nothing’ contracts

New bipartisan legislation aims to outlaw several practices employed by hospitals critics say harm competition, including requirements for payers to contract with affiliated providers.

The legislation introduced Tuesday by Sens. Mike Braun, R-Indiana, and Tammy Baldwin, D-Wisconsin, aims to ensure more affordable contracts between payers and providers.

“When large health systems engage in anticompetitive practices that restrict transparency, reduce choices and drive up healthcare costs we should do something about it,” Baldwin said in a statement.

The Healthy Competition for Better Care Act would prohibit health systems from requiring a payer or employer to contract with an affiliated provider or hospital as a condition of entering into a contract with the system.

It would also allow insurers to “negotiate their own rates with other providers who are not party to the contract of the provider involved,” according to a release on the legislation.

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