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Senate bill targets anticompetitive health insurance contracts

In committeeS. 4027Latest action

Sponsor: Jon Husted · Senator · OH

AIDecoded by AI · checked against the record
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Official title: Healthy Competition for Better Care Act

119th Congress

Topics: Health care

Introduced:

Read the official bill on Congress.gov

In plain words

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This bill would ban certain contract clauses between insurers and health providers that limit competition, starting 18 months after passage.

50-second read · 4 questions answered below

What does this do?

This bill would make it illegal for health insurance companies and employer health plans to sign contracts with hospitals or doctor networks that include clauses limiting competition. The banned clauses include ones that stop insurers from directing patients to lower-cost providers, force insurers to accept set prices across affiliated facilities, or block other insurers from negotiating lower prices. Exceptions exist for certain coordinated-care models like HMOs, accountable care organizations, and centers of excellence, and states may temporarily protect certain contracts signed around 2019–2020 for up to ten years.

Who does it affect?

This bill affects health insurance companies, employer health plans, hospitals, and doctor networks. Patients who receive care through those plans and providers would also be affected.

Why does it matter?

Removing these contract clauses could change how insurers negotiate prices and how patients are directed to different providers. Federal agencies would be required to issue regulations within one year of the law taking effect.

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Read the official bill on Congress.gov

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Where does it stand?

  1. IntroducedMar 9, 2026
  2. Senate committeeYou are here · Mar 9, 2026
  3. Senate vote
  4. House
  5. The president's desk

Right now: a Senate committee is reviewing it. If the House changes it, it goes back to the Senate before reaching the president.

Latest action: — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Data as of October 9, 2026
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