May
26, 2000
House Pulls Doctor Cartel Bill
at Last Minute
The U.S. House of Representatives this week abruptly
postponed debate on H.R. 1304, the Quality Health Care Coalition
Act, which gives self-employed health professionals the ability to
form cartels and price-fix.
•Amidst strong urging from a majority of members of
the House Republican Conference, the Antitrust Coalition for
Consumer Choice in Health Care and others, the House put off giving
in to demands from a special interest for a blanket exemption from
antitrust laws.
•Opponents of the bill include the Healthcare Leadership Council,
business groups, health plans and insurers, the Federal Trade
Commission, the Department of Justice, the Democratic Leadership
Council, nonphysician providers, the Consumer Federation of America,
and conservative state legislators. Key House sounded warnings
of H.R. 1304's consequences.
Congress postponed this debate for good reason: Medical
cartels will only hurt consumers.
•Collective bargaining groups composed of self-employed
competitors will be free to price-fix, boycott and engage in other
anticompetitive acts, without accountability to any oversight
body.
•The result: Even higher health care costs, more Americans
becoming uninsured, reduced consumer choice, and less incentive to
innovate and improve quality.
•The Congressional Budget Office now predicts that H.R. 1304 will
directly reduce federal tax revenues by $3.6 billion and raise the
costs to federal health programs by $2.5 billion over 10
years. Also, "[b]y increasing costs to private health
plans, H.R. 1304 would result in higher private health insurance
premiums. In the case of employer-sponsored health plans,
higher premium contributions charged to employers would be passed on
to employees in the form of lower cash wages and other fringe
benefits."
Already, medical practitioners put patients at risk through
anticompetitive conduct. H.R. 1304 will only open the
floodgates against competition and consumer protection.
•A group of Texas surgeons has settled Federal Trade Commission
charges that they conspired to restrain competition. Their
price-fixing scheme caused patients, employers and health plans
to incur more than $1,000,000 in higher costs for surgical
services in 1998 and 1999.
•Wisconsin chiropractors settled FTC charges of price-fixing and
boycotting. The association of 900, or 90 percent, of the
state's chiropractors conspired to increase prices and boycott
third-party payers in order to obtain higher reimbursement
rates.
Now that members of Congress are paying attention, Congress must
display good sense and stop this ill-advised legislation in its
tracks. Lawmakers must protect consumers against the higher
costs, less choice, greater likelihood of becoming uninsured and
lower health care quality surely to result from H.R.
1304. |