MID-HUDSON – Two Hudson Valley state lawmakers want to break up healthcare monopolies, accusing large corporations of driving up medical costs, eliminating competition and leaving patients with fewer choices.
Assemblyman Jonathan Jacobson (D-Newburgh) and state Sen. Michelle Hinchey (D-Saugerties) announced legislation targeting the growing influence of insurance companies and healthcare corporations, including UnitedHealth Group and its subsidiary, Optum, which has acquired numerous medical practices throughout the Hudson Valley.
“Healthcare is a necessity. All the market power for our healthcare shouldn’t be in the hands of a few corporations,” Jacobson said. “Patients now have fewer choices and have to wait longer for care. With less competition, prices increase and place a heavier financial burden on patients.”
Hinchey was particularly critical of Optum, accusing the company of using its financial power to squeeze out independent medical practices.
“We know what these monopolies do, because we’ve seen it in our own backyard with Optum — they use their market power to buy up local providers and squeeze out trusted independent practices; they drive up costs for patients; and they limit our ability to find in-network doctors, giving us fewer and fewer places to turn,” she said.
One proposed law would prohibit insurance companies from owning healthcare providers, while another would ban overlapping ownership among insurers, pharmacy benefit managers and pharmacies.
The lawmakers say those arrangements create conflicts of interest that allow corporations to steer patients toward affiliated providers while putting independent practices at a competitive disadvantage.
Additional legislation would prohibit noncompete agreements for healthcare workers and require insurers to reimburse independent medical providers at rates at least equal to those paid to affiliated providers for comparable services.
Hinchey blamed federal inaction for allowing healthcare monopolies to expand.
“Our federal government has abandoned its responsibility to take meaningful action, so it’s up to the states to enforce the antitrust laws that New York led on over a century ago,” she said.
The lawmakers plan to push for passage of the measures during the next legislative session.
Comments