The President’s plan, which is expected to reduce healthcare spending by $2 trillion over the next 10 years, raises legal concerns regarding compliance with U.S. antitrust laws for companies that collaborate to hold down pricing.
Current antitrust laws prohibit the establishment of maximum pricing agreements, in addition to minimum ones. The Federal Trade Commission also recently challenged a proposal by the American Medical Association that would allow physicians to collectively negotiate payment rates with insurers, saying that the collective action would constitute price-fixing.
The administration has not offered companies that participate in the program protection from antitrust laws.
Read the New York Times’ report on healthcare antitrust concerns.
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