Democrats in Congress are proposing legislation that would bar health insurers from buying medical practices through their subsidiaries and require them to separate their insurance and provider businesses.
Filed by Rep. Pat Ryan (D-N.Y.), the bill is aimed at breaking up companies like UnitedHealth Group, which has purchased large medical groups in Ryan’s Hudson Valley district. Residents in the region have complained of poor service, billing problems, and difficulties getting timely access to care.
In announcing the legislation on Wednesday, Ryan cited a STAT investigation that found UnitedHealth Group pays its own provider groups more than rival medical clinics, a practice that may undermine competition and drive up prices. STAT also found that UnitedHealth has pressured doctors in medical groups nationwide to diagnose older patients with chronic diseases to help extract higher payments from Medicare, while reducing access to care needed by acutely ill patients.
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