Warren, known for her consistent support of Obamacare, has co-authored a letter with Senator Mike Braun, a Republican from Indiana, addressed to the Health and Human Services Department inspector general. The letter calls for an investigation into allegations that vertically-integrated healthcare companies are increasing prescription drug costs and evading federal regulations.
Expressing concerns about the nation’s largest health insurers allegedly sidestepping Obamacare’s medical loss ratio (MLR), the senators claim that health insurers are taking advantage of the situation, leading to elevated prescription drug costs and excessive corporate profits. The letter highlights the absence of cost relief for patients using vertically integrated specialty pharmacies compared to functioning markets where generic drugs are significantly more affordable.
The senators specifically mention conglomerates like UnitedHealth Group, which owns various healthcare components, including insurers, pharmacy benefit managers (PBMs), pharmacies, and physician practices. The editorial suggests that such conglomerates may manipulate payments within their network to appear compliant with MLR requirements while retaining more profits.
While Democrats have championed the MLR as a measure benefiting patients, the editorial contends that it has prompted insurers to merge with or acquire PBMs, pharmacies, and healthcare providers, potentially reducing transparency in healthcare spending by allowing insurers to shift profits to their affiliates through reimbursement adjustments.
Warren’s stance on healthcare has evolved over the years. Despite consistently opposing efforts to repeal Obamacare, she advocated for a “Medicare for All” proposal during her 2020 presidential campaign. As of the report, Warren’s office and the Health and Human Services Department had not responded to requests for comments.
Sen. Elizabeth Warren, D-Mass., “is at long last acknowledging that ObamaCare has increased healthcare prices” and created other unintentional consequences https://t.co/SVnHjRlOt0
— Peter Schweizer (@peterschweizer) November 27, 2023
It took 13 years, but Elizabeth Warren is at long last acknowledging that ObamaCare has increased healthcare prices and industry consolidation. Who would have believed it? Government price controls and profit caps have resulted in unintended consequences.https://t.co/fZGgiZ4G1n
— Rep. Jon Dunwell (@jdunwell) November 24, 2023
