May 19, 2000
Antitrust Bill Should Be
Rejected
Health industry leaders strongly urge members of
Congress to oppose H.R. 1304, the Quality Health Care Coalition Act,
which the House of Representatives will be considering.
•In a letter to all House members, Healthcare
Leadership Council President Mary R. Grealy pointed out how H.R.
1304 goes against the principles of access, quality, cost
containment, consumer choice and competition.
This bad bill creates medical cartels.
•Competing health professionals practicing independently
would gain a blanket antitrust exemption so they could bind together
and bargain collectively with health plans and insurers.
•"We have antitrust laws for a reason: cartels harm consumers and
diminish competition," Ms. Grealy wrote.
Creating a "Wild West" scenario of lawlessness does nothing to
contain costs, expand access or improve quality.
•H.R. 1304 suspends, for the benefit of a special interest,
the antitrust law that protects consumers.
•The resulting cartels would not be accountable to any oversight
body, such as the Federal Trade Commission, the Department of
Justice or the National Labor Relations Board.
•"In effect, the sheriff would be powerless to act because the
law would no longer apply to certain groups." One side in
contract negotiations would be bound by antitrust law while the
other side would not.
This legislation will cause health care costs to rise and hit
consumers in the pocketbook.
•The Congressional Budget Office estimates that H.R. 1304
will cost the government more than $22 billion over 10 years.
CBO projects that average doctor income will increase by 15
percent.
•An independent estimate found that private health insurance
premiums will rise by up to 13 percent a year should this
legislation become law. Higher health costs will mean more
Americans become uninsured.
•Federal health programs, such as Medicare, Medicaid and the
Federal Employees Health Benefits Program, will experience higher
costs because of H.R. 1304's effects.
Already, independent practitioners act in anticompetitive ways
that put patients at risk. However, at present, thanks to
antitrust laws, this conduct is illegal.
•For example, 1,800 dentists in Puerto Rico recently had to
settle Federal Trade Commission charges of price-fixing, boycotting
providers and restraining truthful advertising.
Congress should consider carefully the unintended consequences
of a blanket antitrust exemption that legalizes medical
cartels. Congress should just say no to H.R.
1304. |