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Senators tackle hospital ‘gag’ clauses
Modern Healthcare

Two senators want to stop hospitals from steering patients into costlier treatments through their insurance plans, as congressional lawmakers continue on their push to end industry gaming of the healthcare system.

A bill introduced late Tuesday by Sens. Bill Cassidy (R-La.) and Michael Bennet (D-Colo.) would ban health systems from using their insurer contracts to keep people from opting for less expensive treatment from a competitor. Currently, dominant hospitals can leverage their market power with insurance companies to insert so-called “gag clauses” in their contracts.

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