Insurance committee to hear bills that mitigate consolidation and lower healthcare costs
One of the main drivers of Connecticut’s rising healthcare costs is consolidation in the healthcare market, making health coverage increasingly unaffordable for consumers, employers, and businesses. The consolidation of hospitals and providers into large health systems in Connecticut has stifled competition, allowing prices to rise unchecked. Large health systems use anti-competitive contract clauses to demand higher prices without better quality.
Next Tuesday, February 21st at 2:30 pm the Insurance and Real Estate Committee will hold a public hearing on two similar bills, Governor’s Bill 983 and the Insurance Committee’s Raised Bill 6620, to prohibit huge healthcare systems from using their monopoly power to jack up prices and insurance premiums.
Two lawsuits have been filed against Hartford Healthcare for anti-competitive behavior. Other states have taken action to lower prices in consolidated markets like Connecticut’s with this legislation and it’s working to control insurance premiums. Last year, this same legislation passed the Insurance Committee unanimously and the Senate by 29 to 4. But it died on the House calendar.
There is overwhelming evidence that provider consolidation drives up prices for healthcare without improving quality. A 2021 Connecticut legislative forum included experts on the impact of consolidation and other concerns.
If you would like to join the CT Health Policy Project and other advocates testifying in favor of these bills, please let us know at andrews@cthealthpolicy.org. We have tools that make it easy to submit written testimony and/or testify in person.