January 14, 2000
Health Antitrust Bill Would
Raise Costs, Reduce Consumer Choice
Granting health professionals an unprecedented
antitrust exemption would lead to higher health costs, reduced
consumer choice and access, and impeded innovation and quality
improvement.
•Panelists at a recent media briefing sponsored by the
Antitrust Coalition for Consumer Choice in Health Care agreed that
legislation before Congress, the Quality Health Care Coalition Act,
H.R. 1304, would do harm to the health care system – especially on
costs and consumer choice.
•The panel included Art Lerner, former head of the Federal Trade
Commission's health care bureau, Ed Wristen, executive vice
president and COO of First Health Group, Marion McCartney, director
of professional services at the American College of Nurse Midwives,
and Ann Cato, senior corporate counsel of Wal-Mart Stores.
The health cost increase caused by H.R. 1304 would most hurt
those working Americans who today have health coverage but couldn't
afford higher premiums.
•Many employers such as Wal-Mart try hard to offer employee
health benefits. Of Wal-Mart's insured employees and their
families, thanks to Wal-Mart, 40 percent have health benefits for
the first time in their lives.
•Wal-Mart employees, including part-time associates, are offered
health coverage. About 92 percent of Wal-Mart's workforce
earns hourly wages. These are the people most vulnerable to
rising health care costs.
•Wal-Mart's Ann Cato pointed to the Charles River Associates
estimate of the cost rise that H.R. 1304 would cause: "[T]otal
annual personal health care spending would rise between 3.1 and 7.1
percent, or by $34.5 to $80.0 billion annually. Private health
insurance premiums would increase annually by 5.8 to 11.0 percent
($21.7 to $41.1 billion). Annual impacts toward the
lower end of the [cost increase] range can be anticipated to result
fairly quickly . . . ." Translation: Wal-Mart's and
other low-wage employees stand to lose coverage first.
Allowing independent health providers to get together
and bargain collectively would limit consumers' choice of some
health services.
•Marion McCartney, a certified nurse midwife, gave an example
of the kinds of anticompetitive behavior H.R. 1304 would allow;
today, such behavior may well violate the antitrust laws.
•An Arkansas OB/GYN nurse practitioner who already had hospital
privileges returned to school and became a nurse midwife. Upon
completion, she applied to the same hospital for expanded
privileges. The medical staff protested the executive
committee's initial approval, and one physician who supported the
nurse midwife caught a lot of flack from opposing physicians.
The executive committee thus reversed its decision and denied
expanded privileges, denying the community the choice of nurse
midwifery services. She requested a hearing to appeal the
denial, but received instead an offer of relocation
assistance. The doctors who supported her appeal received
threats from other doctors that no more patient referrals would come
to them and that they would be excluded from the primary care
network.
The members of the coalition, representing a range of diverse
groups, may not agree on many other health policy issues. But
they fully agree that the proposed antitrust exemption would only
hurt, not help, the health care system.
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