Legislators seek further health industry probe
This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Two members of a legislative task force are calling for a state and federal investigation into allegations of collusion and unfair business practices in Utah's health care industry even as the panel they sit on awaits the results of a state-funded probe of the same issues.

Sen. Michael Waddoups, R-Taylorsville, and Sen. Gene Davis, D-Salt Lake City, said Tuesday they will solicit the help of the Utah attorney general, the state insurance commissioner, the U.S. Department of Justice and the Federal Trade Commission in hopes of compelling companies such as Intermountain Healthcare and its competitors to disclose financial records and other information about their business practices.

"Some people have suggested the whole system is being gamed," said Davis. "What we really need to do is get tough and go broad on this."

Added Waddoups: "The task force is really struggling, and it's becoming more clear to me that this is more than a Utah problem. This is an American problem. We need to care more about the people and small-business owners struggling to afford health insurance and less about mega profits of the corporations in this country."

Both lawmakers cited recent news stories about consolidation and billion-dollar profits in the health insurance industry as the impetus for their call to action. But they also want to combat the perception that the Privately Owned Health Care Organization Task Force is toothless.

The task force was established a year ago to examine whether Intermountain Healthcare, Utah's largest provider of health care and commercial health insurance plans, exploits its tax-exempt status, restricts competition and bullies patients who can't pay. The panel has hired a national consultant to answer some of those questions - his report is due May 5 - but Davis and Waddoups believe a broader investigation is warranted.

Once the letters are finalized, the lawmakers hope other task force members will sign them. But the two are prepared to move forward regardless, Davis said.

"The only way to get to the bottom of this is through audits and formal investigations," he said.

Waddoups said he met in November with Attorney General Mark Shurtleff and one of his assistants to ask that they look into allegations of monopolistic practices in Utah's health care market. "They've done some good work already," Waddoups said of Shurtleff's staff.

Shurtleff was unavailable for comment Tuesday.

lfantin@sltrib.com

Financial disclosure: The pair's calls come even as a report on the issue is expected May 5; they say more is needed
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