The Justice Department sued NewYork-Presbyterian health system, accusing the New York medical giant of striking anticompetitive deals with insurers that blocked lower-cost options for patients. Government lawyers claim the health system, which includes Columbia University Medical Center and Weill Cornell, used its market dominance to prevent insurers from creating cheaper plans or steering patients to affordable alternatives.

The lawsuit filed in Manhattan federal court highlights how NewYork-Presbyterian allegedly forbade insurers from excluding its expensive facilities from networks or offering incentives for patients to seek lower-cost providers. This follows a similar case against OhioHealth in February, as the Trump administration targets rising healthcare costs amid midterm elections.

Legal experts view the case as part of broader scrutiny into hospital-insurer contracts that remain largely hidden from patients. The government argues that without these restrictive agreements, "All employers and patients who purchase health care in New York City would benefit from lower prices and higher quality as the health care marketplace becomes more competitive."