Antitrust
Waivers Could Raise Consumers' Premiums Up To 13 Percent
FOR IMMEDIATE RELEASE
CONTACT: Richard Coorsh
(202) 824-1787
e-mail: rcoorsh@hiaa.org
March 3, 2000
Nation's annual health bill could grow by $95 billion
WASHINGTON, D.C. - A bill scheduled for consideration next week by
the House Judiciary Committee that would grant an antitrust waiver to
doctors and other health care providers could raise consumers' health
insurance premiums up to 13 percent a year, according to a report released
today by the Health Insurance Association of America (HIAA).
The report notes that the legislation - "The Quality Health-Care
Coalition Act" (H.R. 1304) - could raise the nation's health care tab by
up to $95 billion a year. Similar analysis of legislation in California,
Illinois, and Pennsylvania - also released today by HIAA - indicates that
consumer and taxpayer spending on health care could increase by up to $9.9
billion, $3.6 billion, and $4.5 billion, respectively.
"Existing rules already allow physicians to get together to discuss
quality of care issues," remarked HIAA President Chip Kahn. "Giving them a
waiver will only lead to higher costs for consumers and employers - a cost
increase that none of us can afford."
Today's report updates a similar report released last year by HIAA,
which indicated that H.R. 1304 could raise annual health insurance
premiums by up to 11 percent, and annual health care spending by up to $80
billion. The estimates were updated in part due to revisions in the
government's analysis of annual health care spending, and new estimates of
the number of people who are covered by managed care plans.
According to the new HIAA information, allowing an antitrust waiver in
California could increase annual private health care spending there by up
to $7.7 billion, and taxpayer spending by up to $2.2 billion. An antitrust
waiver in Illinois could increase annual private health care spending up
to $2.9 billion, and taxpayer spending by up to $700 million. A similar
waiver in Pennsylvania could increase annual private health care spending
up to $3.3 billion, and taxpayer spending by up to $1.2 billion.
HIAA's reports were authored by economist Monica G. Noether, Ph.D.,
former deputy assistant director and staff economist of the antitrust
office of the Federal Trade Commission and currently a vice president of
Charles River Associates, a Boston-based consulting firm.
The Health Insurance Association of America is the nation's most
prominent trade association representing the private health care system.
Its 290 members provide health, long-term care, dental, disability, and
supplemental coverage to more than 123 million Americans.
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PLEASE NOTE: The reports referenced above are available at HIAA's
web site: http://www.hiaa.org/news/news-state/mediakitantitrust.htm
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