A new bill introduced in Congress aims to stop health insurance companies from owning clinics that serve Medicare patients. The “Patients Over Profits Act” targets the growing trend of insurance companies buying independent medical clinics. Lawmakers are worried that this practice puts making money ahead of patient care.
The bill would require insurers and their subsidiaries to give up any clinics they own that provide Medicare Part B or Part C services. If they don’t comply, they could face legal actions from federal and state agencies, including the Federal Trade Commission and state attorneys general. The legislation also seeks to discourage future purchases by preventing the Department of Health and Human Services from contracting with Medicare Advantage organizations that own these types of clinics, cutting off potential profits tied to those plans.
Several Democrats are backing the bill, including Representatives Val Hoyle from Oregon, Pat Ryan from New York, Pramila Jayapal from Washington, as well as Senators Jeff Merkley from Oregon and Elizabeth Warren from Massachusetts. Hoyle stressed the importance of keeping patient care the top priority. She noted how Wall Street firms have been buying up local clinics and then focusing more on profits rather than on helping patients.
Lawmakers are especially concerned about large mergers like those involving UnitedHealth Group’s Optum division. Optum spent $31 billion over two years buying various medical practices and surgical centers. This company now employs or contracts about 10% of the country’s doctors and owns over 750 clinic subsidiaries. Experts say these acquisitions make it harder to understand healthcare prices and mix up the roles of doctors and insurers.
Senator Merkley shared a story from Oregon where, after being bought by Optum, a clinic lost many of its physicians and thousands of patients. He said doctors should focus on providing the best care, not acting as profit engines for huge healthcare companies.
On the other side, America’s Health Insurance Plans, which represents the health insurance industry, argued that Medicare Advantage helps more than 35 million people. They stated that insurers continue to work on improvements for patients.
The bill is now awaiting further consideration in Congress. Supporters hope it will keep doctors focused on patient care rather than profits. What do you think about this move? Share your thoughts below.