Antitrust
WHILE SOME OF THE INFORMATION PROVIDED PERTAINS TO LEGAL MATTERS, IT IS NOT INTENDED TO BE NOR SHOULD IT BE DEEMED TO CONSTITUTE LEGAL ADVICE OR OPINION, AND THE READER MAY NOT RELY ON IT AS SUCH. YOU ARE STRONGLY ENCOURAGED TO CONSULT WITH YOUR OWN ATTORNEY PRIOR TO TAKING ANY ACTION REGARDING ANY OF THE INFORMATION PRESENTED.
OUR STANCE
AAFP wants a level playing field in health care, which demands improvements on both sides of the antitrust coin: physicians and health insurers. Physicians must be allowed to participate fully and freely in the health care market place while health insurers should be prevented from gaining market dominance to a point that will reduce/eliminate competition.
Current Federal Trade Commission (FTC) policies on health care antitrust enforcement that prevent physicians from negotiating with health plans are particularly onerous for primary care physicians, resulting in "take-it-or-leave-it" contracts with third-party payers. Rising costs combine with static or reduced payments to challenge the economic viability of primary care practices. Yet, physicians are being forced to accept or reject entirely the contract terms of health insurance companies. This is taking place while the Department of Justice has challenged only three out of more than 400 mergers involving health insurers and managed care organizations that have occurred in the past 12 years, and where the AMA market study indicates that in 96 percent (299) of the Metropolitan Service Areas (MSAs), at least one insurer has a combined HMO/PPO market share of 30 percent or greater.
Current Federal Trade Commission (FTC) policies on health care antitrust enforcement that prevent physicians from negotiating with health plans are particularly onerous for primary care physicians, resulting in "take-it-or-leave-it" contracts with third-party payers. Rising costs combine with static or reduced payments to challenge the economic viability of primary care practices. Yet, physicians are being forced to accept or reject entirely the contract terms of health insurance companies. This is taking place while the Department of Justice has challenged only three out of more than 400 mergers involving health insurers and managed care organizations that have occurred in the past 12 years, and where the AMA market study indicates that in 96 percent (299) of the Metropolitan Service Areas (MSAs), at least one insurer has a combined HMO/PPO market share of 30 percent or greater.
AAFP Advocacy Activities
- AAFP Fact Sheet on impact of FTC restrictions on physicians’ negotiations (2-page PDF file; About PDFs).
- AAFP Talking Points on its recommendations for change to FTC rules (1-page PDF file; About PDFs).
- AAFP urges Congress to pass legislation to ease FTC restrictions on primary care physicians’ contract negotiations with third party payers on August 21, 2008. Read the letter (7-page PDF file; About PDFs)
- AAFP participates on the AMA/Specialty Society Coalition’s Antitrust Work Group that collectively advocates for FTC to realize the harm caused by its enforcement policies.
- AAFP testimony to the House Committee on Small Business in October 2007. Read the testimony (5-page PDF file; About PDFs)
Make Your Voice Heard
- Send a letter to state department of insurance commissioner raising concerns about health insurer consolidation. Download a template letter (1-page Word document; About Downloading), personalize it and send it.
- Respond to a legislative activity relative to health insurer mergers and acquisitions. Download a letter (2-page Word document; About Downloading), customize it, and send it.
- We want to hear about your experiences. Submit a health plan grievance or view grievances submitted by other members (Members Only).
- Subscribe to our e-mail discussion list and hear what others are saying. (Members Only)
Other Resources
- AMA's Physician Networks and Antitrust: Call for a More Flexible Enforcement white paper (40-page PDF file; About PDFs), June 2008.
- Family Physician, Edward Langston, MD testimony to the Senate Judiciary Committee (12-page PDF file; About PDFs) in stating the need to review the monopsony in health insurers, September 2006.