Senator Jon Husted (R-Ohio) introduced the bipartisan Healthy Competition for Better Care Act on Mar. 10, aiming to ban anticompetitive clauses in health care contracts between payers, providers, and hospitals.
The legislation seeks to address rising health care costs by promoting competition and transparency in the industry. Supporters say that removing restrictive contracting practices will help lower prices and improve access for patients.
The bill targets four main types of anticompetitive clauses: all-or-nothing clauses that require insurers to include all providers in their networks; anti-steering and anti-tiering clauses that prevent employers from choosing lower-cost or higher-quality providers; most-favored-nation clauses that force certain insurers to get the best price, which can raise prices overall; and gag clauses that stop providers from sharing cost information with employers, making it harder for patients to compare options.
A companion bill was introduced in the U.S. House of Representatives by Reps. Jodey Arrington (R-Texas), Rick Allen (R-Ga.), Donald Davis (D-N.C.), and Chuck Edwards (R-N.C.).
“My bill creates incentives for real competition in health care to reduce costs for patients,” Husted said.
Arrington said, “Americans are paying too much for too little health care. My Healthy Competition for Better Care Act cracks down on anti-competitive practices, removes unnecessary restrictions, and gives patients the freedom to find better-quality and lower-cost care. This bipartisan legislation puts hardworking families first, ensures fair competition, and puts patients, not bureaucrats, back in charge of their health care.”
Allen added, “I have often said that the best way to lower health care costs for hardworking Americans is to enhance competition in the marketplace. For too long, anti-competitive practices have driven up premiums and out-of-pocket costs while simultaneously limiting consumers’ ability to choose the health care plan that meets their needs. The Healthy Competition for Better Care Act proposes comprehensive reforms to improve our flawed system by increasing transparency, fostering greater competition, expanding access to quality care, and lowering skyrocketing health care costs. I thank Representative Arrington for his leadership on this legislation and look forward to its consideration by the Education and Workforce Committee.”
Melissa Bartlett, Senior Vice President of Health Policy at The ERISA Industry Committee (ERIC), voiced support: “ERIC enthusiastically backs the Healthy Competition for Better Care Act because it enhances transparency, makes health care markets more competitive, and gives patients greater access to high-quality, affordable care. Supporting value-focused contracting helps ensure that employers and their workers can get high-quality care at prices they can afford. We appreciate Senator Husted for championing this bill, and look forward to advancing it to help make health care more affordable for working families.”
