During 2022, Physicians for a National Health Program investigated a select sample of Direct Contracting Entities (the precursor to REACH) and uncovered a range of bad behavior on the part of parent companies and affiliates that was as unsettling as it was commonplace. Examples ranged from lawsuits and whistleblower complaints to multi-million dollar settlements.
Sen. Elizabeth Warren and Rep. Pramila Jayapal sent a letter to the administrator of Medicare and Medicaid citing these findings. They noted that the participation of companies with suspect histories in the Direct Contracting program “reveals ongoing threats to Medicare, raising concerns that the ACO REACH model could allow bad corporate actors into Medicare, putting patients and taxpayer dollars at risk.”
Once the REACH program went live, PNHP sent its own letter to senior Biden administration officials describing the many reasons why for-profit entities cannot be trusted to administer Traditional Medicare benefits, and calling for an end to the REACH program.