November 24, 2025
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PBGH Supports Reintroduction of House Bill Prohibiting Anticompetitive Health Care Business Practices

Oakland, CA (November 24, 2025) – The Purchaser Business Group on Health (“PBGH”) applauds Representatives Jodey Arrington (R-TX), Don Davis (D-NC), and Rick Allen (R-GA) for reintroducing  the Healthy Competition for Better Care Act (“Healthy Competition Act”) . The bipartisan bill contains commonsense reforms that will greatly enhance competition and improve affordability in the health care market.

Elizabeth Mitchell, President and CEO of PBGH, provided the following statement in support of the legislation’s reintroduction:

“PBGH strongly supports Rep. Arrington’s reintroduction of the Healthy Competition for Better Care Act, which will increase health care affordability by prohibiting anticompetitive business practices and removing restrictions that are obstacles to true competition in health care markets. The procompetitive reforms in this bill will enable our purchaser members – who through PBGH’s Health Care Data Demonstration Project have identified higher-quality, lower-cost providers – to steer their plan members more freely to higher-value providers and form direct contracts. We look forward to continuing to work with Reps. Arrington, Davis, and Allen to ensure the bill delivers the greatest possible impact on cost and quality for America’s workers and families.”

Last Congress, PBGH and its members endorsed the bill (H.R. 3120) and provided feedback to House staff that was informed by the real-world contracting and benefit design experience of PBGH’s purchaser members. The current version of the Healthy Competition Act reflects that feedback by removing unworkable attestation mandates on employers. This improvement is in-line with similar feedback PBGH has provided to policymakers on the Consolidation Appropriation Act’s (“CAA”) prohibition on gag clauses.

Below is a summary of the newly introduced Healthy Competition Act:

  • Prohibits “group health plans” or “health insurance issuers” offering group or individual coverage from entering into any agreements that would:
    • Place restrictions on directing or steering participants to other high-value health care providers;
    • Prevent offering incentives to encourage plan participants to utilize specific health care providers;
    • Require the plan to enter into additional agreements with affiliated entities;
    • Require the plan to agree to payment rates or other terms for any affiliated entity;
    • Restrict any other health plan not party to the agreement from paying a lower rate for items or services.
  • The bill modifies the Public Health Service Act, Employee Retirement and Income Security Act (“ERISA”), and the Internal Revenue Code, meaning it would apply to ERISA and non-ERISA health plans alike.
  • The bill applies equally to both fully insured and self-funded health plans.
  • The bill’s would apply to any contracts “entered into, amended, or renewed” 18 months after the date the Act is enacted into law.
  • The bill would require the Administration to issue regulations and enforcement guidance 12 months after the Act is enacted into law, providing purchasers additional guidance on how the law applies to them.

Purchasers are supportive of policies that lower health care prices, promote fair competition, and increase the agency that purchasers have over how their benefit plans are designed and operated. Prohibiting anticompetitive contracting practices would significantly advance these goals. PBGH will continue to work closely with Congressional staff and Members as this bill moves through the legislative process.