After thirteen long years, Senator Elizabeth Warren, a staunch supporter of the Affordable Care Act, commonly known as Obamacare, has had a change of heart.
The Wall Street Journal’s editorial board pointed out that Warren has recently had an “epiphany” about Obamacare, acknowledging the unintended consequences, namely “industry consolidation and price increases caused by the healthcare law.”
Senator Warren’s newfound perspective was revealed through a letter addressed to the Health and Human Services Department inspector general. The letter raises concerns about vertically-integrated healthcare companies potentially inflating prescription drug costs and circumventing federal regulations.
Alongside Senator Mike Braun of Indiana, Warren expressed their frustration with the nation’s largest health insurers allegedly evading Obamacare’s medical loss ratio (MLR) requirements.
According to Warren, these health insurers have taken advantage of the situation, resulting in exorbitant prescription drug costs and excessive corporate profits.
“In functioning markets, generic drugs cost 80 to 85 percent less than their name-brand equivalents, giving patients much-needed relief from high drug costs and saving taxpayer dollars,” Warren wrote. “But patients – including patients in public health care programs like Medicare and Medicaid – who either use or are compelled to use vertically integrated specialty pharmacies are not seeing this relief.”
The senators continued: “By owning every link in the chain, a conglomerate like UnitedHealth Group – which includes an insurer, a PBM, a pharmacy, and physician practices – can send inflated medical payments to its pharmacy. Then, by realizing those payments on the pharmacy side – the side that charges for care – rather than the insurance side, the insurance line of business appears to be in compliance with MLR requirements, while keeping more money for itself.”
The Wall Street Journal offered insight into the MLR’s impact, explaining that it has driven insurers to merge with or acquire PBMs, retail and specialty pharmacies, and healthcare providers. This consolidation has led to a lack of transparency in healthcare spending, as insurers can transfer profits to their affiliates by adjusting reimbursements.
Warren’s sudden change of heart on Obamacare is particularly rich given her history of opposing repeal efforts and advocating for a “Medicare for All” proposal during her 2020 presidential campaign.
Her office and the Health and Human Services Department have yet to respond to Fox News requests for comment on this matter.
While the Senator may now have concerns about industry consolidation and rising healthcare costs due to Obamacare it is highly unlikely that there will be any move towards healthcare reform and supplanting the Affordable Care Act.
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