Some major systems forbid insurers to sell any plan excluding the hospital from the network. They could also require insurers to design plans that discourage enrollees’ use of less expensive providers.

Senate Judiciary Chair Charles Grassley, R-Iowa, has asked the Federal Trade Commission to look into contracts between major health systems and insurers to see whether they might be anticompetitive.

According to Modern Healthcare, Grassley wants the FTC to see whether such contracts are playing a role in the rise of health care costs. Grassley cited a September article from the Wall Street Journal that mentioned “hidden financial arrangements between hospital systems and insurers that included limitations on coverage offered by the plans to their enrollees, which in turn would save the hospitals money.”

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events.
  • Access to other award-winning ALM websites including and

Already have an account?

Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

More from this author



Join BenefitsPRO

Don’t miss crucial news and insights you need to navigate the shifting employee benefits industry. Join now!

  • Unlimited access to - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including and
  • Exclusive discounts on and ALM events.

Already have an account? Sign In Now
Join BenefitsPRO

Copyright © 2022 ALM Global, LLC. All Rights Reserved.