California Sues Sutter Health Alleging Excessive Pricing

California Attorney General Xavier Becerra has sued Sutter Health, accusing them of illegally quashing competition and overcharging customers and employers.

"2016 study found that hospital prices at Sutter and Dignity Health, the two biggest hospital chains in California, were 25 percent higher than at other hospitals around the state. Researchers at the University of Southern California said the giant health systems used their market power to drive up prices — making the average patient admission at both chains nearly $4,000 more expensive."

Of the lawsuit, "it said Sutter employs a variety of improper tactics, such as gag clauses on prices, “punitively high” out-of-network charges and “all-or-nothing” contract terms that require all of its facilities to be included in insurance networks."

I'll be keeping an eye for updates on this as many in my area of California use Sutter Health services.  This limits the choice of health insurance plans significantly.

Read the full article at kaiser Health News