Lina Khan, head of the Federal Trade Commission, cautioned about the risk of healthcare price fixing driven by advancements in technology, PYMNTS reported April 24.
In a media event hosted by KFF, Ms. Khan expressed concerns about algorithms, specifically about how this technology enables companies to fix prices without direct coordination, posing a new hurdle for regulators to address.
Ms. Khan emphasized that price fixing, which removes competition and raises prices for consumers, is against the law, even if done through algorithms. She explained how companies can use algorithms to set the same prices without directly agreeing, comparing it to how property managers use similar algorithms.
Additionally, Ms. Khan talked about the FTC's focus on artificial intelligence and algorithms that set prices based on consumer behavior. As healthcare companies change their structures to make more money, the FTC is adjusting its approach to protect consumers from potential harm, according to Ms. Khan.