Two rival hospitals in Terre Haute, Indiana, pulled back their merger application Monday, just days before the state was due to rule on the deal amid growing backlash to such medical monopolies.
The proposed merger between Union Health and Terre Haute Regional Hospital, the only acute care hospitals in Vigo County, Indiana, would have left Terre Haute's 58,000 residents and those in the surrounding region with a single hospital operator. Although federal laws prohibit monopolies, the hospitals sought the merger under a state provision known as a "Certificate of Public Advantage" law, or COPA.
"Recognizing the COPA process is a very complex, innovative approach to improving access and quality health care for area residents, we believe it is best to withdraw the current application," Union Health said in a statement posted on its website.
Union said it plans to submit a new application after working with Indiana regulators to "ensure the benefits" such as "improved access, quality" are included.
The withdrawal came nine days before a Dec. 4 deadline for state regulators to rule on whether to OK the merger. In recent months, the state health agency had received a deluge of public comments from residents and the Federal Trade Commission opposed to the deal between Union Health, a nonprofit whose main hospital is licensed as a 341-bed facility, and the 278-bed Terre Haute Regional Hospital, owned by for-profit chain HCA Healthcare. The commenters cited concerns about longer travel times to get emergency care, higher prices, and fewer choices.
Union Health and HCA declined to answer questions about what prompted the decision to pull back the application.
"There could be any number of reasons why they pulled the application with the stated intention to refile," said Christopher Garmon, a University of Missouri-Kansas City economist who has studied COPA mergers. Given the status of the application, he said, it's unlikely the deal was headed toward an approval. "Either way, I think it's clear that the state was not ready to approve the COPA with conditions similar to past COPAs."
It was the latest setback against mergers under COPA laws. Indiana and 18 other states have such laws that shield hospital mergers from federal enforcement by the Federal Trade Commission.
As a condition of the deals, states typically agree to monitor hospital performance and quality while limiting price hikes. Supporters of COPAs argue that state oversight built into the agreements can mitigate the harms of a monopoly. But health economists and the FTC have said that oversight cannot replace competition and that these mergers ultimately harm patients.
"We know that COPAs generally benefit the merging hospitals, but not local residents," said Zack Cooper, a health economist and associate professor at Yale University.
His analysis of the Terre Haute deal suggested that it would have damaged the local economy and squeezed residents' wallets. Cooper said he hopes that states faced with similar merger decisions will see Indiana's waylaid case and the pushback against other COPA mergers as a cause for pause.
In comments to Indiana regulators, the FTC said COPAs "have proven unwieldy," are "difficult to manage," and "have failed to protect local communities from the harmful effects of anticompetitive hospital mergers."
In 2018, Ballad Health formed as the nation's largest state-approved hospital monopoly, with COPA agreements in Virginia and Tennessee. Since then, KFF Health News has reported, Ballad has fallen short on meeting quality and charity care goals, according to annual reports from Ballad and the Tennessee Department of Health. After years of complaints from patients, the state is now trying to hold Ballad more accountable for its quality of care.
Ballad Health has said that "the most important thing to our patients is the quality of care they receive" and that its system is rebounding after hospital quality slipped due to the pressure of the coronavirus pandemic.
Problems have also occurred when a COPA — and its oversight — are removed, leaving the merged hospital system as an "unregulated monopoly." After North Carolina repealed its COPA in 2015, a subsidiary of HCA Healthcare bought Mission Health, a COPA-created monopoly in Asheville, for $1.5 billion in 2019. The monopoly in Asheville remained, but none of the COPA's conditions applied to the new owner.
Last year, government inspectors found "deficiencies" at Mission Health that contributed to four patient deaths and posed an "immediate jeopardy" to patients' health and safety, according to the 384-page federal inspection report. HCA has said it promptly addressed the issues. But the state and the hospital system are now engaged in a lawsuit.
Four states besides North Carolina — Maine, Minnesota, Montana, and North Dakota — have repealed COPA laws. Maine ended its law last year amid warnings from the FTC regarding such mergers.
Bill Montejo, a director at Maine's Department of Health and Human Services, pointed to an FTC study as he urged lawmakers on a health committee last year to repeal its COPA law due to "the growing concerns about the ineffectiveness and potential negative effects of COPAs."
The Union-Regional merger was years in the making. In 2021, Union Health leaders were instrumental in the passage of Indiana's COPA law. They supplied draft language for the bill to one of the bill's authors, according to legislative testimony, and Union Health CEO Steve Holman testified before lawmakers that the merger would improve the county's poor public health rankings.
In 2023, Union Health and Regional had signed an agreement to merge, beginning the COPA application process.
Union faces a July 1, 2026, deadline to refile an application, according to Indiana's COPA law.
Unauthorized switching of Affordable Care Act plans appears to have tapered off in recent weeks based on an almost one-third drop in casework associated with consumer complaints, say federal regulators. The Centers for Medicare & Medicaid Services, which oversees the ACA, credits steps taken to thwart enrollment and switching problems that triggered more than 274,000 complaints this year through August.
Now, the annual ACA open enrollment period that began Nov. 1 poses a real-world test: Will the changes curb fraud by rogue agents or brokerages without unduly slowing the process of enrolling or reducing the total number of sign-ups for 2025 coverage?
"They really have this tightrope to walk," said Sabrina Corlette, co-director of the Center on Health Insurance Reforms at Georgetown University. "The more you tighten it up to prevent fraud, the more barriers there are that could inhibit enrollment among those who need the coverage."
CMS said in July that some types of policy changes — those in which the agent is not "affiliated" with the existing plan — will face more requirements, such as a three-way call with the consumer, broker, and a healthcare.gov call center representative.
In August, the agency barred two of about a dozen private sector online-enrollment platforms from connecting with healthcare.gov over concerns related to improper switching.
And CMS has suspended 850 agents suspected of being involved in unauthorized plan-switching from accessing the ACA marketplace.
Still, the clampdown could add complexity to enrollment and slow the process. For example, a consumer might have to wait in a queue for a three-way call, or scramble to find a new agent because the one they previously worked with had been suspended.
Given that phone lines with healthcare.gov staff already get busy — especially during mid-December — agents and policy analysts advise consumers not to dally this year.
"Hit the ground running," said Ronnell Nolan, president and CEO of Health Agents for America, a professional organization for brokers.
Meanwhile, reports are emerging that some rogue entities are already figuring out workarounds that could undermine some of the anti-fraud protections CMS put in place, Nolan said.
"Bottom line is: Fraud and abuse is still happening," Nolan said.
Brokers assist the majority of people actively enrolling in ACA plans and are paid a monthly commission by insurers for their efforts. Consumers can compare plans or enroll themselves online through federal or state marketplace websites. They can also seek help from people called assisters or navigators — certified helpers who are not paid commissions. Under a "find local help" button on the federal and state ACA websites, consumers can search for nearby brokers or navigators.
CMS says it has "ramped up support operations" at its healthcare.gov marketplace call centers, which are open 24/7, in anticipation of increased demand for three-way calls, and it expects "minimal wait times," said Jeff Wu, deputy director for policy of the CMS Center for Consumer Information and Insurance Oversight.
Wu said those three-way calls are necessary only when an agent or a broker not already associated with a consumer's enrollment wants to change that consumer's enrollment or end that consumer's coverage. It does not apply to people seeking coverage for the first time.
Organizations paid by the government to offer navigator services have a dedicated phone line to the federal marketplace, and callers are not currently experiencing long waits, said Xonjenese Jacobs, director of Florida Covering Kids & Families, a program based at the University of South Florida that coordinates enrollment across the state through its Covering Florida navigator program.
Navigators can assist with the three-way calls if a consumer's situation requires it.
"Because we have our quick line in, there's no increased wait time," Jacobs said.
The problem of unauthorized switches has been around for a while but took off during last year's open enrollment season.
Brokers generally blamed much of the problem on the ease with which rogue agents can access ACA information in the federal marketplace, needing only a person's name, date of birth, and state of residence. Though federal regulators have worked to tighten that access with the three-way call requirement, they stopped short of instituting what some agent groups say is needed: two-factor authentication, which could involve a code accessed by a consumer through a smartphone.
Unauthorized switches can lead to a host of problems for consumers, from higher deductibles to landing in new networks that do not include their preferred physicians or hospitals. Some people have received tax bills when unauthorized policies came with premium credits for which they did not qualify.
Unauthorized switches posed a political liability for the Biden administration, a blemish on two years of record ACA enrollment. The practice drew criticism from lawmakers on both sides of the aisle; Democrats demanded more oversight and punishment of rogue agents, while Republicans said fraud attempts were fueled by Biden administration moves that allowed for more generous premium subsidies and special enrollment periods. The fate of those enhanced subsidies, which are set to expire, will be decided by Congress next year as the Trump administration takes power. But the premiums and subsidies that come with 2025 plans that people are enrolling in now will remain in effect for the entire year.
The actions taken this year to thwart the unauthorized enrollments apply to the federal marketplace, used by 31 states. The remaining states and the District of Columbia run their own websites, with many having in place additional layers of security.
For its part, CMS says its efforts are working, pointing to the 30% drop in complaint casework. The agency also noted a 90% drop in the number of times an agent's name was replaced by another's, which it says indicates that it is tougher for rival agents to steal clients to gain the monthly commissions that insurers pay.
Still, the move to suspend 850 agents has drawn pushback from agent groups that initially brought the problem to federal regulators' attention. They say some of those accused were suspended before getting a chance to respond to the allegations.
"There will be a certain number of agents and brokers who are going to be suspended without due process," said Nolan, with the health agents' group. She said that it has called for increased protections against unauthorized switching and that two-factor authentication, like that used in some state marketplaces or in the financial sector, would be more effective than what's been done.
"We now have to jump through so many hoops that I'm not sure we're going to survive," she said of agents in general. "They are just throwing things against the wall to see what sticks when they could just do two-factor."
The agency did not respond to questions asking for details about how the 850 agents suspended since July were selected, the states where they were located, or how many had their suspensions reversed after supplying additional information.
Nearly a year after the Biden administration gave Florida the green light to become the first state to import lower-cost prescription drugs from Canada — a longtime goal of politicians across the political spectrum, including President-elect Donald Trump — the program has yet to begin.
Florida Gov. Ron DeSantis hailed the FDA's approval of his plan in January, calling it a victory over the drug industry, which opposes importation on the grounds that it would lead to a surge in counterfeit medications.
A Florida health official familiar with the importation program told KFF Health News there was no planned date yet for the state to begin importing drugs. The official asked not to be identified because they weren't authorized to speak publicly about the program.
Florida applied to create an importation program in November 2020, just months after the Trump administration gave states the option. DeSantis, a Republican, complained publicly for years about the pace of the federal approval process under the Biden administration and in 2022 filed suit against the FDA for what he called a "reckless delay."
Trump touted his administration's move to bring medicines over the border in a preelection interview published last month by AARP, the advocacy group for older Americans, which supports allowing Americans to buy drugs from Canada. He vowed to "continue my efforts to protect Americans from unaffordable drug prices" in a second term.
It's not clear whether his second administration will or can do more to help Florida and other states set up programs, because it's ultimately up to the states to act. Colorado is the only other state that has an importation plan pending with the FDA.
DeSantis administration officials have refused for months to answer questions from KFF Health News about the program. Alecia Collins, deputy chief of staff for the Florida Agency for Health Care Administration, said in October that officials were traveling and unavailable. In mid-November, she said she still had no answers.
DeSantis press secretary Jeremy Redfern said he had been "slammed" since the first week of November and could not answer questions.
FDA spokesperson Cherie Duvall-Jones said she could not answer whether Florida had submitted documents the agency requires before the state can start importing medicines. She referred all questions to the state.
Drug companies typically sell medications for far less in Canada than in the United States, as a result of Canadian government price controls. But because of safety and efficacy concerns, federal law prohibits consumers from buying drugs from outside U.S. borders except in rare cases.
Politicians ranging from conservatives such as DeSantis to liberals such as Sen. Bernie Sanders of Vermont have long pushed for importing lower-cost prescription drugs from Canada.
In 2000, Congress passed a law allowing states to import prescription drugs from north of the border, with the caveat that it could go forward only if the secretary of the Department of Health and Human Services affirmed it was safe. That didn't happen until 2020, when Trump's HHS secretary, Alex Azar, made such a declaration.
Since 2022, Azar has been chairman of the board at LifeScience Logistics, a Dallas-based company that Florida is paying millions of dollars to set up its drug importation program, including warehousing its medicines.
Azar on Nov. 13 refused to answer questions from KFF Health News about drug importation, saying he wasn't authorized to speak on the matter.
Florida's program would not directly assist consumers at the pharmacy. It's instead aimed at lowering costs for the state Medicaid program and for the corrections and health departments.
Matthew Baxter, a senior director at Ontario-based Methapharm Specialty Pharmaceuticals, which has contracted with LifeScience to export drugs, would not say whether Methapharm has sent any medicines over the border.
The pharmaceutical industry and the Canadian government oppose U.S. drug importation. Drug companies say importation would increase the risk of counterfeit drugs appearing on U.S. pharmacy shelves, while the government in Ottawa has warned it won't allow medicines to be exported if Canadians could experience shortages as a result.
Florida's predicted savings would also be relatively minor. DeSantis estimated the program would save state agencies up to $180 million in its first year. Florida's annual Medicaid budget tops $30 billion.
Florida identified 14 drugs, including for cancer and AIDS, that it would attempt to import from Canada for its state agencies.
Camm Epstein, a health policy analyst in Saratoga Springs, New York, said drug importation is a seemingly simple concept that resonates with the public, which is why DeSantis and others have turned to the idea as a response to rising drug prices. "It riles up the crowd," he said. "Who doesn't want to pay lower drug costs?"
But bringing drugs over the border is complicated because of the FDA's many requirements, including finding companies to work with — a Canadian exporter and a U.S. importer — and following a process that ensures the drugs are authentic, Epstein said.
"This was, at best, a boondoggle," he said.
Florida has spent tens of millions of dollars to stand up its drug importation program. The state has already paid LifeScience Logistics $50 million to set up a warehouse to store the medicines. DeSantis noted the costs in his 2022 lawsuit against the FDA.
"Plaintiffs have paid their retained importer and distributor over $24 million thus far — and increasing at the rate of $1.2 million every month — even though not a single prescription pill has been imported, relabeled, or distributed, solely because of the FDA's idleness," the state said in its suit.
Florida's delay may be due to operational challenges, Epstein said. "Predictably, even if they turned on the spigot there would be no flow, because Canada was not going to permit for the supply," he said.
Colorado and Florida are among at least nine states that have passed laws allowing for Canadian drug importation. Colorado's 2022 application to the FDA is still pending. In December 2023, Colorado officials released a report noting the state was unable to find a drugmaker willing to sell it medicines from Canada.
President-elect Donald Trump's return to the White House could embolden Republicans who want to weaken or repeal the Affordable Care Act, but implementing such sweeping changes would still require overcoming procedural and political hurdles.
Trump, long an ACA opponent, expressed interest during the campaign in retooling the health law. In addition, some high-ranking Republican lawmakers — who will now have control over both the House and the Senate — have said revamping the landmark 2010 legislation known as Obamacare would be a priority. They say the law is too expensive and represents government overreach.
The governing trifecta sets the stage for potentially seismic changes that could curtail the law's Medicaid expansion, raise the uninsured rate, weaken patient protections, and increase premium costs for millions of people.
"The Republican plans — they don't say they are going to repeal the ACA, but their collection of policies could amount to the same thing or worse," said Sarah Lueck, vice president for health policy at the Center on Budget and Policy Priorities, a research and policy institute. "It could happen through legislation and regulation. We're on alert for anything and everything. It could take many forms."
Congressional Republicans have held dozens of votes over the years to try to repeal the law. They were unable to get it done in 2017 after Trump became president, even though they held both chambers and the White House, in large part because some GOP lawmakers wouldn't support legislation they said would cause such a marked increase in the uninsured rate.
While neither Trump nor his GOP allies have elaborated on what they would change, House Speaker Mike Johnson said last month that the ACA needs "massive reform" and would be on the party's agenda should Trump win.
Congress could theoretically change the ACA without a single Democratic vote, using a process known as "reconciliation." The narrow margins by which Republicans control the House and Senate mean just a handful of "no" votes could sink that effort, though.
Many of the more ambitious goals would require Congress. Some conservatives have called for changing the funding formula for Medicaid, a federal-state government health insurance program for low-income and disabled people. The idea would be to use budget reconciliation to gain lawmakers' approval to reduce the share paid by the federal government for the expansion population. The group that would be most affected is made up largely of higher-income adults and adults who don't have children rather than "traditional" Medicaid beneficiaries such as pregnant women, children, and people with disabilities.
A conservative idea that would let individuals use ACA subsidies for plans on the exchange that don't comply with the health law would likely require Congress. That could cause healthier people to use the subsidies to buy cheaper and skimpier plans, raising premiums for older and sicker consumers who need more comprehensive coverage.
"It's similar to an ACA repeal plan," said Cynthia Cox, a vice president and the director of the Affordable Care Act program at KFF, a health information nonprofit that includes KFF Health News. "It's repeal with a different name."
Congress would likely be needed to enact a proposal to shift a portion of consumers' ACA subsidies to health savings accounts to pay for eligible medical expenses.
Trump could also opt to bypass Congress. He did so during his previous tenure, when the Department of Health and Human Services invited states to apply for waivers to change the way their Medicaid programs were paid for — capping federal funds in exchange for more state flexibility in running the program. Waivers have been popular among both blue and red states for making other changes to Medicaid.
"Trump will do whatever he thinks he can get away with," said Chris Edelson, an assistant professor of government at American University. "If he wants to do something, he'll just do it."
Republicans have another option to weaken the ACA: They can simply do nothing. Temporary, enhanced subsidies that reduce premium costs — and contributed to the nation's lowest uninsured rate on record — are set to expire at the end of next year without congressional action. Premiums would then double or more, on average, for subsidized consumers in 12 states who enrolled using the federal ACA exchange, according to data from KFF.
That would mean fewer people could afford coverage on the ACA exchanges. And while the number of people covered by employer plans would likely increase, an additional 1.7 million uninsured individuals are projected each year from 2024 to 2033, according to federal estimates.
Many of the states that would be most affected, including Texas and Florida, are represented by Republicans in Congress, which could give some lawmakers pause about letting the subsidies lapse.
The Trump administration could opt to stop defending the law against suits seeking to topple parts of it. One of the most notable cases challenges the ACA requirement that insurers cover some preventive services, such as cancer screenings and alcohol use counseling, at no cost. About 150 million people now benefit from the coverage requirement.
If the Department of Justice were to withdraw its petition after Trump takes office, the plaintiffs would not have to observe the coverage requirement — which could inspire similar challenges, with broader implications. A recent Supreme Court ruling left the door open to legal challenges by other employers and insurers seeking the same relief, said Zachary Baron, a director of Georgetown University's Center for Health Policy and the Law.
In the meantime, Trump could initiate changes from his first day in the Oval Office through executive orders, which are directives that have the force of law.
"The early executive orders will give us a sense of policies that the administration plans to pursue," said Allison Orris, a senior fellow at the Center on Budget and Policy Priorities. "Early signaling through executive orders will send a message about what guidance, regulations, and policy could follow."
In fact, Trump relied heavily on these orders during his previous term: An October 2017 order directed federal agencies to begin modifying the ACA and ultimately increased consumer access to health plans that didn't comply with the law. He could issue similar orders early on in his new term, using them to start the process of compelling changes to the law, such as stepped-up oversight of potential fraud.
The administration could early on take other steps that work against the ACA, such as curtailing federal funding for outreach and help signing up for ACA plans. Both actions depressed enrollment during the previous Trump administration.
Trump could also use regulations to implement other conservative proposals, such as increasing access to health insurance plans that don't comply with ACA consumer protections.
The Biden administration walked back Trump's efforts to expand what are often known as short-term health plans, disparaging the plans as "junk" insurance because they may not cover certain benefits and can deny coverage to those with a preexisting health condition.
The Trump administration is expected to use regulation to reverse Biden's reversal, allowing consumers to keep and renew the plans for much longer.
But drafting regulations has become far more complicated following a Supreme Court ruling saying federal courts no longer have to defer to federal agencies facing a legal challenge to their authority. In its wake, any rules from a Trump-era HHS could draw more efforts to block them in the courts.
Some people with ACA plans say they're concerned. Dylan Reed, a 43-year-old small-business owner from Loveland, Colorado, remembers the days before the ACA — and doesn't want to go back to a time when insurance was hard to get and afford.
In addition to attention-deficit/hyperactivity disorder and anxiety, he has scleroderma, an autoimmune disease associated with joint pain and numbness in the extremities. Even with his ACA plan, he estimates, he pays about $1,000 a month for medications alone.
He worries that without the protections of the ACA it will be hard to find coverage with his preexisting conditions.
"It's definitely a terrifying thought," Reed said. "I would probably survive. I would just be in a lot of pain."
A California agency charged with slowing health costs has set a lofty goal for insurers to direct 15% of their spending to primary care by 2034, part of the state's effort to expand the primary care workforce and give more people access to preventive care services.
The board of the state Office of Health Care Affordability in October set its benchmark well above the industry's current 7% primary care spending rate, in hopes of improving Californians' health and reducing the need for costlier care down the road.
"It's ambitious but achievable," said Elizabeth Landsberg, director of the state's Department of Health Care Access and Information, which oversees the affordability agency. "Plans and health systems need time to build the infrastructure to really change the way they're providing care."
But California's target comes just six months after the affordability board set an annual cap of 3.5% for overall growth in health care spending, potentially squeezing insurers from two sides.
"How these two policies will interact is unclear and we believe it is important to not lose sight of our overall goal of reducing the growth of health care costs," Mary Ellen Grant, a spokesperson for the California Association of Health Plans, said in a statement.
The affordability agency argues health plans are best positioned to promote more spending on preventive care services, since insurers are the ones that negotiate payment with providers. Landsberg said health plans could dangle incentives, such as offering higher reimbursement rates for primary care providers or paying for comprehensive care instead of for individual visits.
If successful, the agency says, the spending target could expand the primary care workforce through the hiring of staff and lead to better health management, disease prevention, and early diagnosis and treatment for more patients across the state.
California faces a shortage of primary care providers, which has limited people's access to preventive care. Approximately 6 million Californians live in parts of the state where there aren't enough doctors to meet people's needs, according to a data analysis by KFF, a health information nonprofit that includes KFF Health News.
A 2021 report by the National Academies of Sciences, Engineering, and Medicine found that while more than 35% of health care visits in the U.S. are to primary care physicians, only about 5% of health spending is on primary care. That's compared with about 13% for some other developed nations.
"People have high regard for primary care, understand how important it is," said Kevin Grumbach, a professor of family and community medicine at the University of California-San Francisco who helped develop the state's primary care target. "They way overestimate how much of their tax dollars are actually going to support primary care."
Beginning next year, the affordability agency will start collecting data on how much health plans spend annually on primary care, particularly in settings such as community-based clinics, schools, and homeless shelters. Doctors, nurses, and pharmacists are among the providers whose services can be counted toward the goal. But the agency is excluding obstetricians, who sometimes serve as primary care providers for pregnant women, to focus on those offering "coordinated, comprehensive care" for patients.
Health plans will be expected to increase primary care spending from 0.5% to 1% of their total medical expenses each year until 15% is reached in 2034.
At least six states — Colorado, Connecticut, Delaware, Oregon, Rhode Island, and Washington — have already implemented primary care targets with some success. Rhode Island, which set a 10.7% goal, more than doubled its primary care spending from 2008 to 2018, while also reducing overall health spending.
The Biden administration has launched initiatives to improve primary care, but it has not set a primary care target for Medicare.
In California, the affordability agency collects health care spending data that captures nearly 33 million of the state's 39 million residents. The agency said it will begin to collect primary care spending data in fall 2025, but that information may not be released for two more years.
The state agency lacks enforcement authority in primary care spending, so to get health plans to hit the target, the agency is dangling financial incentives. At a primary care summit at the University of California-Davis in October, Landsberg said the agency could allow insurers to exceed the 3.5% overall growth cap if they show their spending went to boost primary care.
Efrain Talamantes, chief operating officer for AltaMed Health Services, one of the state's largest federally qualified community health centers, said these payments could help the health center expand services by training and hiring staff.
If health plans comply, the policy should lead to more primary care providers, timelier appointments, and better health outcomes, especially for disadvantaged communities that historically haven't had good access to care, Talamantes said.
"We should see an improvement where people are able to access their primary care the same day," he said.
As discussions continue, the state is working on targets to increase spending on behavioral health, another underinvested service. A vote on that measure could come next summer.
Indiana residents and federal officials are urging state health regulators to stop two rival hospitals in Terre Haute from merging. The deal, if approved, would leave residents with a hospital monopoly.
Union Health, a nonprofit whose main hospital is licensed as a 341-bed facility, would buy the county's only other acute care hospital, the 278-bed Terre Haute Regional Hospital, owned by for-profit chain HCA Healthcare and located 5 miles south across the city's downtown area. Union says the merger to create one larger nonprofit health system would improve the area's poor public health rankings.
The Indiana Department of Health received hundreds of comments on the proposed merger, according to documents KFF Health News obtained through a state public records request. Most people expressed opposition to the deal, citing concerns about longer travel times to get emergency care, higher prices, and fewer choices for Terre Haute's 58,000 residents and those in Vigo County's nearby rural communities.
"Monopoly should be just a board game. Not a healthcare system," a commenter listed as H. Osborne wrote to the state health agency.
Doctors, health economists, and the Federal Trade Commission called on the Indiana Department of Health to deny Union Hospital's merger application. Such mergers became possible after Indiana enacted a Certificate of Public Advantage law, or COPA, in 2021, shielding the deals from federal anti-monopoly laws.
Two dozen states have had COPA laws on their books at some point, despite FTC warnings that such mergers can become difficult to control and may decrease the overall quality of care. The trend has come amid a broader wave of hospital consolidation, which research shows fuels price hikes and healthcare spending, driving up costs for families, employers, and taxpayers who foot the bill for Medicare and Medicaid.
Union Health said its proposed deal would improve care and increase access to services while "maintaining cost efficiency" for patients.
"This is not merely a business transaction; it is a strategic effort to improve healthcare delivery in our community," Union said in a statement.
John Collett, an executive with Garmong Construction who also serves on the board of the Terre Haute Chamber of Commerce, wrote that the deal would help the region achieve its goal of boosting population and income levels. (Garmong Construction served as construction manager for Union on multiple projects, including one worth hundreds of millions of dollars, according to an online brochure of its past projects.)
"I firmly believe this to be a step in the right direction," Collett wrote.
But the FTC — using italics for emphasis — said the deal is "unlikely to result in improved quality and access" and "would not lead to a healthier workforce or a stronger local economy," according to comments the agency submitted to Indiana regulators.
Zack Cooper, a health economist and associate professor at Yale University, said the merger would probably damage the local economy and squeeze residents' wallets. Cooper's analysis estimates the price of care would rise by at least 10% for area residents and lead to 500 lost jobs, while nurses' pay would drop by at least 7%. His research predicts the deal also would lead to unnecessary deaths from suicide or overdose, stemming from those job losses.
"I firmly believe this merger would harm members of the public in Terre Haute and Vigo County," Cooper wrote.
As a condition of these types of mergers, state agencies typically agree to monitor hospital quality and prices to make up for the loss of competition. Union said monitoring would hold it accountable, according to its response to the FTC's public comments opposing the deal.
The FTC pushed back, saying the oversight mechanism "would be insufficient to contain costs" and is a "poor substitute" for competition. Even though Union would face limits on raising prices in Vigo County, the FTC said, the system might be able to hike them elsewhere, including at its hospital in neighboring Vermillion County to the north.
Indiana has some of the highest hospital prices in the nation, according to studies by Rand Corp., a research organization.
In Terre Haute, some doctors worry the deal would exacerbate existing problems. Kathleen Stienstra, a physician in private practice, voiced her concerns about Union's management style, saying it has led to an exodus of doctors.
"A monopoly will lead to further deterioration in services," she wrote.
Separately, the FTC referenced KFF Health News' reporting on Tennessee's Ballad Health, a 20-hospital monopoly in Appalachia, as a cautionary tale against such mergers.
Ballad Health was granted the nation's largest state-sanctioned hospital monopoly in 2018. Since then, its emergency rooms have become more than three times as slow.
COPAs, such as the one that Ballad operates under, "have proven unwieldy," are "difficult to manage," and "have failed to protect local communities from the harmful effects of anticompetitive hospital mergers," the FTC said in its comments on the Union-Regional merger.
Since Ballad launched in 2018 and became the nation's largest state-approved hospital monopoly, it has not lived up to some of its promises, KFF Health News reported. It has fallen short on meeting quality and charity care goals, according to annual reports from Ballad and the Tennessee Department of Health. After years of problems and complaints from patients, the state is now trying to hold Ballad more accountable for its quality of care.
Ballad declined to respond to KFF Health News inquiries regarding the FTC's comments.
Now the Indiana Department of Health must consider the comments and decide by early December whether the proposed merger would improve health outcomes, access to services, and quality of care. Under the department's standards, those benefits must "outweigh any potential disadvantages."
KFF Health News correspondent Brett Kelman contributed to this report.
Hospitals around the country are conserving critical intravenous fluid supplies to cope with a shortage that may last months. Some hospital administrators say they are changing how they think about IV fluid hydration altogether.
Hurricane Helene, which hit North Carolina in September, wrecked a Baxter International facility that produces 60% of the IV fluids used in the U.S., according to the American Hospital Association.
The company was forced to stop production and is rationing its products. In an update posted Nov. 7, Baxter said its North Cove facility had resumed producing some IV fluids. In an email to KFF Health News, the company wrote that customers will be able to order normal quantities of "certain IV solutions products" by the end of the year, but there is no timeline for when the North Cove facility will be back to prehurricane production levels.
Meanwhile, hospitals are facing seasonal strains on their already limited IV fluid resources, said Sam Elgawly, chief of resource stewardship at Inova, a health system in the Washington, D.C., area.
"We've been very aggressive in our conservation measures," Elgawly said, stressing that he does not believe patient care has been compromised. He told KFF Health News that across the system IV fluid usage has dropped 55% since early October.
Elgawly called the shortage a crisis that he expects to have to continue managing for some time. "We are going to operate under the assumption that this is going to be the way it is through the end of 2024 and have adopted our demand/conservation measures accordingly," he said.
At the end of the calendar year, many patients with insurance hurry to schedule surgical procedures before their deductibles reset in January. Elgawly is eyeing that typical surgical rush and the impending peak of respiratory virus season as he tries to stockpile IV fluid bags. Hospitals such as Inova's are using different ways to conserve, such as giving some medications intravenously, but without a dedicated IV fluid bag, known as a push medication.
"You don't even need a bag at all. You just give the medication without the bag," he said. "There has been increasing literature over the last 10 to 20 years that indicates maybe you don't need to use as much. And this accelerated our sort of innovation and testing of that idea."
Monica Coleman is a nurse at a Department of Veterans Affairs hospital in North Chicago. She said using push medications takes more time out of a nurse's already hectic schedule because then they need to monitor the patient.
"This could increase adverse effects within the patient, because we're giving the medication at a faster rate," she said.
Elgawly is also interested in retooling electronic health records to question doctor orders for more IV hydration.
"Does the patient actually need that second bag? How did they do today with eating or drinking water or juice? They did well? They don't need the bag. So it's little conservation mechanisms like that that, when you add them across, you know, the 2,000-patient system that Inova is, make a significant dent," he said.
Simpler conservation measures could become common after the shortage abates, said Vince Green, chief medical officer for Pipeline Health, a small hospital system in the Los Angeles area that serves mainly people on Medicare and Medicaid.
First, Green would like to see data showing that patient outcomes aren't affected. But for now, some of the new strategies just make sense to him. He has directed hospital staff to use up the entire IV bag before starting another.
"If they come in with IV fluids that the paramedics have started, let's continue it. If it saves half a bag of fluids, so be it, but it adds up over time," he said.
Patients may be asked to take more accountability for their hydration, by drinking Gatorade or water rather than the default of hydrating through an IV, he said.
"From an environmental aspect, we don't need to have this much waste and fill up our landfills. If we could reduce stuff, I think it'd be wise," he said.
But he'll feel better when his hospitals receive a full order, which could be weeks away. Green said they are down to a two-week supply, with an expected increase in hospitalizations due to respiratory virus season.
"We're purchasing every IV fluid bag that we can get," he said.
Many scientists at the federal health agencies await the second Donald Trump administration with dread as well as uncertainty over how the president-elect will reconcile starkly different philosophies among the leaders of his team.
Trump announced Thursday he'll nominate Robert F. Kennedy Jr. to be secretary of the Health and Human Services Department, after saying during his campaign he'd let the anti-vaccine activist "go wild" on medicines, food, and health.
Should Kennedy win Senate confirmation, his critics say a radical antiestablishment medical movement with roots in past centuries would take power, threatening the achievements of a science-based public health order painstakingly built since World War II.
Trump said in a post on the social platform X that "Americans have been crushed by the industrial food complex and drug companies who have engaged in deception, misinformation, and disinformation when it comes to Public Health," echoing Kennedy's complaints about the medical establishment. The former Democratic presidential candidate will "end the Chronic Disease epidemic" and "Make American Great and Healthy Again!" Trump wrote.
If Kennedy makes good on his vision for transforming public health, childhood vaccine mandates could wither. New vaccines might never win approval, even as the FDA allows dangerous or inefficient therapies onto the market. Agency websites could trumpet unproven or debunked health ideas. And if Trump's plan to weaken civil service rights goes through, anyone who questions these decisions could be summarily fired.
"Never has anybody like RFK Jr. gotten anywhere close to the position he may be in to actually shape policy," said Lewis Grossman, a law professor at American University and the author of "Choose Your Medicine," a history of U.S. public health.
Kennedy and an adviser Calley Means, a health care entrepreneur, say dramatic changes are needed because of the high levels of chronic disease in the United States. Government agencies have corruptly tolerated or promoted unhealthy diets and dangerous drugs and vaccines, they say.
Means and Kennedy did not respond to requests for comment. Four conservative members of the first Trump health bureaucracy spoke on condition of anonymity. They eagerly welcomed the former president's return but voiced few opinions about specific policies. Days after last week's election, RFK Jr. announced that the Trump administration would immediately fire and replace 600 National Institutes of Health officials. He set up a website seeking crowdsourced nominees for federal appointments, with a host of vaccination foes and chiropractors among the early favorites.
At meetings last week at Mar-a-Lago involving Elon Musk, Tucker Carlson, Donald Trump Jr., Kennedy, and Means, according to Politico, some candidates for leading health posts included Jay Bhattacharya, a Stanford University scientist who opposed covid lockdowns; Florida Surgeon General Joseph Ladapo, who opposes mRNA covid vaccines and rejected well-established disease control practices during a measles outbreak; Johns Hopkins University surgeon Marty Makary; and Means' sister, Stanford-trained surgeon and health guru Casey Means.
All are mavericks of a sort, though their ideas are not uniform. Yet the notion that they could elbow aside a century of science-based health policy is profoundly troubling to many health professionals. They see Kennedy's presence at the heart of the Trump transition as a triumph of the "medical freedom" movement, which arose in opposition to the Progressive Era idea that experts should guide health care policy and practices.
It could represent a turning away from the expectation that mainstream doctors be respected for their specialized knowledge, said Howard Markel, an emeritus professor of pediatrics and history at the University of Michigan, who began his clinical career treating AIDS patients and ended it after suffering a yearlong bout of long covid.
"We've gone back to the idea of 'every man his own doctor,'" he said, referring to a phrase that gained currency in the 19th century. It was a bad idea then and it's even worse now, he said.
"What does that do to the morale of scientists?" Markel asked. The public health agencies, largely a post-WWII legacy, are "remarkable institutions, but you can screw up these systems, not just by defunding them but by deflating the true patriots who work in them."
FDA Commissioner Robert Califf told a conference on Nov. 12 that he worried about mass firings at the FDA. "I'm biased, but I feel like the FDA is sort of at peak performance right now," he said. At a conference the next day, CDC Director Mandy Cohen reminded listeners of the horrors of vaccine-preventable diseases like measles and polio. "I don't want to have to see us go backward in order to remind ourselves that vaccines work," she said.
Stocks of some the biggest vaccine developers fell after news outlets led by Politico reported that the RFK pick was expected. Moderna, the developer of one of the most popular covid-19 vaccines, closed down 5.6%. Pfizer, another covid vaccine manufacturer, fell 2.6%. GSK, the producer of vaccines protecting against respiratory syncytial virus, hepatitis A and B, rotavirus, and influenza, fell just over 2%. French drug company Sanofi, whose website boasts its products vaccinate over 500 million annually, tumbled nearly 3.5%.
Exodus From the Agencies?
With uncertainty over the direction of their agencies, many older scientists at the NIH, FDA, and Centers for Disease Control and Prevention are considering retirement, said a senior NIH scientist who spoke on the condition of anonymity for fear of losing his job.
"Everybody I talk to sort of takes a deep breath and says, 'It doesn't look good,'" the official said.
"I hear of many people getting CVs ready," said Arthur Caplan, a professor of bioethics at New York University. They include two of his former students who now work at the FDA, Caplan said.
Others, such as Georges Benjamin, executive director of the American Public Health Association, have voiced wait-and-see attitudes. "We worked with the Trump administration last time. There were times things worked reasonably well," he said, "and times when things were chaotic, particularly during covid." Any wholesale deregulation efforts in public health would be politically risky for Trump, he said, because when administrations "screw things up, people get sick and die."
At the FDA, at least, "it's very hard to make seismic changes," former FDA chief counsel Dan Troy said.
But the administration could score easy libertarian-tinged wins by, for example, telling its new FDA chief to reverse the agency's refusal to approve the psychedelic drug MDMA from the company Lykos. Access to psychedelics to treat post-traumatic stress disorder has grabbed the interest of many veterans. Vitamins and supplements, already only lightly regulated, will probably get even more of a free pass from the next Trump FDA.
'Medical Freedom' or 'Nanny State'
Trump's health influencers are not monolithic. Analysts see potential clashes among Kennedy, Musk, and more traditional GOP voices. Casey Means, a "holistic" MD at the center of Kennedy's "Make America Healthy Again" team, calls for the government to cut ties with industry and remove sugar, processed food, and toxic substances from American diets. Republicans lampooned such policies as exemplifying a "nanny state" when Mike Bloomberg promoted them as mayor of New York City.
Both the libertarian and "medical freedom" wings oppose aspects of regulation, but Silicon Valley biotech supporters of Trump, like Samuel Hammond of the Foundation for American Innovation, have pressed the agency to speed drug and device approvals, while Kennedy's team says the FDA and other agencies have been "captured" by industry, resulting in dangerous and unnecessary drugs, vaccines, and devices on the market.
Kennedy and Casey Means want to end industry user fees that pay for drug and device rules and support nearly half the FDA's $7.2 billion budget. It's unclear whether Congress would make up the shortfall at a time when Trump and Musk have vowed to slash government programs. User fees are set by laws Congress passes every five years, most recently in 2022.
The industry supports the user-fee system, which bolsters FDA staffing and speeds product approvals. Writing new rules "requires an enormous amount of time, effort, energy, and collaboration" by FDA staff, Troy said. Policy changes made through informal "guidance" alone are not binding, he added.
Kennedy and the Means siblings have suggested overhauling agricultural policies so that they incentivize the cultivation of organic vegetables instead of industrial corn and soy, but "I don't think they'll be very influential in that area," Caplan said. "Big Ag is a powerful entrenched industry, and they aren't interested in changing."
"There's a fine line between the libertarian impulse of the 'medical freedom' types and advocating a reformation of American bodies, which is definitely 'nanny state' territory," said historian Robert Johnston of the University of Illinois-Chicago.
Specific federal agencies are likely to face major changes. Republicans want to trim the NIH's 27 research institutes and centers to 15, slashing Anthony Fauci's legacy by splitting the National Institute of Allergy and Infectious Diseases, which he led for 38 years, into two or three pieces.
Numerous past attempts to slim down the NIH have failed in the face of campaigns by patients, researchers, and doctors. GOP lawmakers have advocated substantial cuts to the CDC budget in recent years, including an end to funding gun violence, climate change, and health equity research. If carried out, Project 2025, a policy blueprint from the conservative Heritage Foundation, would divide the agency into data-collecting and health-promoting arms. The CDC has limited clout in Washington, although former CDC directors and public health officials are defending its value.
"It would be surprising if CDC wasn't on the radar" for potential change, said Anne Schuchat, a former principal deputy director of the agency, who retired in 2021.
The CDC's workforce is "very employable" and might start to look for other work if "their area of focus is going to be either cut or changed," she said.
Kennedy's attacks on HHS and its agencies as corrupted tools of the drug industry, and his demands that the FDA allow access to scientifically controversial drugs, are closely reminiscent of the 1970s campaign by conservative champions of Laetrile, a dangerous and ineffective apricot-pit derivative touted as a cancer treatment. Just as Kennedy championed off-patent drugs like ivermectin and hydroxychloroquine to treat covid, Laetrile's defenders claimed that the FDA and a profit-seeking industry were conspiring to suppress a cheaper alternative.
The public and industry have often been skeptical of health regulatory agencies over the decades, Grossman said. The agencies succeed best when they are called in to fix things — particularly after bad medicine kills or damages children, he said.
The 1902 Biologics Control Act, which created the NIH's forerunner, was enacted in response to smallpox vaccine contamination that killed at least nine children in Camden, New Jersey. Child poisonings linked to the antifreeze solvent for a sulfa drug prompted the modern FDA's creation in 1938. The agency, in 1962, acquired the power to demand evidence of safety and efficacy before the marketing of drugs after the thalidomide disaster, in which children of pregnant women taking the anti-nausea drug were born with terribly malformed limbs.
If vaccination rates plummet and measles and whooping cough outbreaks proliferate, babies could die or suffer brain damage. "It won't be harmless for the administration to broadly attack public health," said Alfredo Morabia, a professor of epidemiology at Columbia University and the editor-in-chief of the American Journal of Public Health. "It would be like taking away your house insurance."
Sam Whitehead, Stephanie Armour, David Hilzenrath, and Darius Tahir contributed to this report.
[Update: This article was updated on the evening of Nov. 14 to reflect Trump's nomination of Kennedy as secretary of the Department of Health and Human Services and movement in some pharmaceutical companies' stock prices.]
In April, just 12 weeks into her pregnancy, Kathleen Clark was standing at the receptionist window of her OB-GYN's office when she was asked to pay $960, the total the office estimated she would owe after she delivered.
Clark, 39, was shocked that she was asked to pay that amount during this second prenatal visit. Normally, patients receive the bill after insurance has paid its part, and for pregnant women that's usually only when the pregnancy ends. It would be months before the office filed the claim with her health insurer.
Clark said she felt stuck. The Cleveland, Tennessee, obstetrics practice was affiliated with a birthing center where she wanted to deliver. Plus, she and her husband had been wanting to have a baby for a long time. And Clark was emotional, because just weeks earlier her mother had died.
"You're standing there at the window, and there's people all around, and you're trying to be really nice," recalled Clark, through tears. "So, I paid it."
On online baby message boards and other social media forums, pregnant women say they are being asked by their providers to pay out-of-pocket fees earlier than expected. The practice is legal, but patient advocacy groups call it unethical. Medical providers argue that asking for payment up front ensures they get compensated for their services.
How frequently this happens is hard to track because it is considered a private transaction between the provider and the patient. Therefore, the payments are not recorded in insurance claims data and are not studied by researchers.
Patients, medical billing experts, and patient advocates say the billing practice causes unexpected anxiety at a time of already heightened stress and financial pressure. Estimates can sometimes be higher than what a patient might ultimately owe and force people to fight for refunds if they miscarry or the amount paid was higher than the final bill.
Up-front payments also create hurdles for women who may want to switch providers if they are unhappy with their care. In some cases, they may cause women to forgo prenatal care altogether, especially in places where few other maternity care options exist.
It's "holding their treatment hostage," said Caitlin Donovan, a senior director at the Patient Advocate Foundation.
Medical billing and women's health experts believe OB-GYN offices adopted the practice to manage the high cost of maternity care and the way it is billed for in the U.S.
When a pregnancy ends, OB-GYNs typically file a single insurance claim for routine prenatal care, labor, delivery, and, often, postpartum care. That practice of bundling all maternity care into one billing code began three decades ago, said Lisa Satterfield, senior director of health and payment policy at the American College of Obstetricians and Gynecologists. But such bundled billing has become outdated, she said.
Previously, pregnant patients had been subject to copayments for each prenatal visit, which might lead them to skip crucial appointments to save money. But the Affordable Care Act now requires all commercial insurers to fully cover certain prenatal services. Plus, it's become more common for pregnant women to switch providers, or have different providers handle prenatal care, labor, and delivery — especially in rural areas where patient transfers are common.
Some providers say prepayments allow them to spread out one-time payments over the course of the pregnancy to ensure that they are compensated for the care they do provide, even if they don't ultimately deliver the baby.
"You have people who, unfortunately, are not getting paid for the work that they do," said Pamela Boatner, who works as a midwife in a Georgia hospital.
While she believes women should receive pregnancy care regardless of their ability to pay, she also understands that some providers want to make sure their bill isn't ignored after the baby is delivered. New parents might be overloaded with hospital bills and the costs of caring for a new child, and they may lack income if a parent isn't working, Boatner said.
In the U.S., having a baby can be expensive. People who obtain health insurance through large employers pay an average of nearly $3,000 out-of-pocket for pregnancy, childbirth, and postpartum care, according to the Peterson-KFF Health System Tracker. In addition, many people are opting for high-deductible health insurance plans, leaving them to shoulder a larger share of the costs. Of the 100 million U.S. people with health care debt, 12% attribute at least some of it to maternity care, according to a 2022 KFF poll.
Families need time to save money for the high costs of pregnancy, childbirth, and child care, especially if they lack paid maternity leave, said Joy Burkhard, CEO of the Policy Center for Maternal Mental Health, a Los Angeles-based policy think tank. Asking them to prepay "is another gut punch," she said. "What if you don't have the money? Do you put it on credit cards and hope your credit card goes through?"
Calculating the final costs of childbirth depends on multiple factors, such as the timing of the pregnancy, plan benefits, and health complications, said Erin Duffy, a health policy researcher at the University of Southern California's Schaeffer Center for Health Policy and Economics. The final bill for the patient is unclear until a health plan decides how much of the claim it will cover, she said.
But sometimes the option to wait for the insurer is taken away.
During Jamie Daw's first pregnancy in 2020, her OB-GYN accepted her refusal to pay in advance because Daw wanted to see the final bill. But in 2023, during her second pregnancy, a private midwifery practice in New York told her that since she had a high-deductible plan, it was mandatory to pay $2,000 spread out with monthly payments.
Daw, a health policy researcher at Columbia University, delivered in September 2023 and got a refund check that November for $640 to cover the difference between the estimate and the final bill.
"I study health insurance," she said. "But, as most of us know, it's so complicated when you're really living it."
While the Affordable Care Act requires insurers to cover some prenatal services, it doesn't prohibit providers from sending their final bill to patients early. It would be a challenge politically and practically for state and federal governments to attempt to regulate the timing of the payment request, said Sabrina Corlette, a co-director of the Center on Health Insurance Reforms at Georgetown University. Medical lobbying groups are powerful and contracts between insurers and medical providers are proprietary.
Because of the legal gray area, Lacy Marshall, an insurance broker at Rapha Health and Life in Texas, advises clients to ask their insurer if they can refuse to prepay their deductible. Some insurance plans prohibit providers in their network from requiring payment up front.
If the insurer says they can refuse to pay up front, Marshall said, she tells clients to get established with a practice before declining to pay, so that the provider can't refuse treatment.
Clark said she met her insurance deductible after paying for genetic testing, extra ultrasounds, and other services out of her health care flexible spending account. Then she called her OB-GYN's office and asked for a refund.
"I got my spine back," said Clark, who had previously worked at a health insurer and a medical office. She got an initial check for about half the $960 she originally paid.
In August, Clark was sent to the hospital after her blood pressure spiked. A high-risk pregnancy specialist — not her original OB-GYN practice — delivered her son, Peter, prematurely via emergency cesarean section at 30 weeks.
It was only after she resolved most of the bills from the delivery that she received the rest of her refund from the other OB-GYN practice.
This final check came in October, just days after Clark brought Peter home from the hospital, and after multiple calls to the office. She said it all added stress to an already stressful period.
"Why am I having to pay the price as a patient?" she said. "I'm just trying to have a baby."
KFF Health News has sued HHS' Office of Inspector General to compel it to release a range of Medicare Advantage health plan audits and other financial records.
The suit, filed Nov. 12 in U.S. District Court in San Francisco under the Freedom of Information Act, or FOIA, seeks documents from the HHS inspector general's office, which acts as a watchdog over federal health insurance programs run by CMS.
The suit asks for correspondence and other records of contact between HHS officials or their representatives and Medicare Advantage organizations concerning overpayment audit findings and potential financial penalties.
It also seeks records reflecting communication between HHS and CMS officials regarding the government's policies for recovering overpayments discovered during Medicare Advantage audits, including a controversial decision in January 2023 to limit dollar recoveries for audits dating back a decade or more.
Additionally, the suit seeks copies of government contracts awarded to outside firms that have conducted Medicare Advantage audits, including budgets and performance evaluations, dating to 2020. In these audits, reviewers take a sample of 200 patients from a health plan and determine whether medical records support the diagnoses the government paid health plans to treat.
KFF Health News requested the records in August, but, more than two months later, "no documents, responsive or otherwise, have been produced," the suit says.
Sam Cate-Gumpert, an attorney with Davis Wright Tremaine, which is representing KFF Health News pro bono in the case, said the information is "critically important to public oversight of government misspending."
According to the suit, the inspector general's office has audited the Medicare Advantage program more than three dozen times since 2019, revealing billions of dollars in overpayments.
But government officials have not recouped the overcharges, according to the suit.
The HHS Office of Inspector General "has left taxpayers footing the bill for billions of dollars in overpayments — even though HHS OIG's primary purpose is to combat fraud and waste in Medicare and other federally funded health programs," the suit alleges.
"In fact, taxpayers have been forced to pay for the Medicare Advantage program's wasteful spending twice — first, because of the program itself, and second, because of the costs of the audits, which the government spends millions of dollars to conduct," according to the suit.
Medicare Advantage, mostly run by private insurance companies, has enrolled more than 33 million seniors and people with disabilities, more than half of people on Medicare.
But the program has faced criticism that it costs billions of dollars more than it should with research showing that many health plans exaggerate how sick patients are to boost payments.
A FOIA lawsuit filed by KFF Health News in September 2019 prompted CMS to release summaries of 90 Medicare Advantage audits revealing millions of dollars in overpayments. As part of a settlement, CMS paid $63,000 in KFF Health News' legal fees, though it did not admit to wrongfully withholding the records.
The HHS Office of Inspector General had no immediate comment on the suit.