July 7, 2000
Doctor Cartels Bill Passes
House
Legislation that would allow doctors to bargain
collectively with health plans through unregulated cartels passed
the House of Representatives last week.
•By a vote of 276-136, Congress elected to send the
Healthcare Leadership Council-opposed legislation to the Senate.
•H.R. 1304, called by opponents the "OPEC for Doctors" bill,
would give a special interest a broad antitrust exemption that would
surely result in higher health care costs and more uninsured
Americans.
Granting a blanket antitrust exemption is all about doctor
income.
•H.R. 1304 would legalize doctor cartels, price-fixing and
boycotts.
•The House, under intense pressure from the American Medical
Association, rejected two separate amendments that would have
prohibited these cartels from negotiating on fees.
•A new, independent analysis conservatively estimates that
physicians will gain fee increases of 20 percent.
The bill gives the antitrust exemption of a labor union, but
the unaccountability of a cartel like OPEC.
•All other antitrust exemptions have some corresponding
oversight. For instance, labor unions must answer to the
National Labor Relations Board and insurance companies must answer
to state insurance commissioners under "state action doctrine."
•The House rejected an amendment that would have instituted
modest oversight by the Federal Trade Commission or the Department
of Justice. New cartels would have had to seek certification
that their ability to bargain collectively would promote competition
and enhance health care quality.
A blanket antitrust exemption would result in predictable
consequences: harm to consumers.
•A new, independent study estimates that H.R. 1304 would
increase health care costs by 8.6 percent and add 3 million more
Americans to the uninsured rolls by 2005.
•The new study concludes that the 3-year sunset of H.R. 1304 will
likely accelerate the formation of cartels, rather than slow it, as
the Congressional Budget Office estimated. The infrastructure
of physician organizations and the compelling financial incentives
to form cartels will mean formation sooner, not later.
•Cartels of doctors could force out their nonphysician provider
competitors, thus limiting consumer choice in a given market.
The House has passed the most anti-consumer, anti-competitive
legislation imaginable. The Senate should reject H.R. 1304 as
the product of raw, special interest politics. If Senators
care about putting the health care consumer first, then they must
say no to doctor
cartels. |