During a recent government meeting, significant concerns were raised regarding the impact of anti-competitive contracting practices in the healthcare sector, particularly affecting employer-sponsored health care. Miss Schulman, a key witness, emphasized that these practices, including all-or-nothing clauses and anti-steering provisions, severely limit the ability of employers to provide their employees with access to lower-cost, higher-quality healthcare options.

As large hospital systems continue to consolidate by acquiring smaller hospitals and physician practices, they gain substantial market power. This dominance allows them to impose restrictive contract terms on health plans, insurers, and third-party administrators. Such provisions prevent employers from directing employees toward more affordable and effective healthcare providers, ultimately hindering the potential for value-based care.

Schulman highlighted that these anti-competitive terms not only restrict plan benefit design but also inflate costs for both employers and employees. The council expressed strong support for the Healthy Competition for Better Care Act, which aims to curb these restrictive practices and promote a more competitive healthcare environment. The committee was urged to approve the legislation to enhance access to quality care and empower employers in their healthcare decisions.