2000 Ron Paul 61:1
Mr. Chairman, I am pleased to
take this opportunity to lend my support to H.R. 1304, the Quality
Health Care Coalition Act, which takes a first step towards restoring a
true free-market in health care by restoring the rights of freedom of
contract and association to health care professionals. Over the past
few years, we have had much debate in Congress about the difficulties
medical professionals and patients are having with Health Maintenance
Organizations (HMOs). HMOs are devices used by insurance industries to
ration health care. While it is politically popular for members of
Congress to bash the HMOs and the insurance industry, the growth of the
HMOs are rooted in past government interventions in the health care
market though the tax code, the Employment Retirement Security Act
(ERSIA), and the federal anti-trust laws. These interventions took
control of the health care dollar away from individual patients and
providers, thus making it inevitable that something like the HMOs would
emerge as a means to control costs.
2000 Ron Paul 61:2
Many of my
well-meaning
colleagues would deal with the problems created by the HMOs by
expanding the federal governments control over the health care market.
These interventions will inevitably drive up the cost of health care
and further erode the ability of patents and providers to determine the
best health treatments free of government and third-party interference.
In contrast, the Quality Health Care Coalition Act addresses the
problems associated with HMOs by restoring medical professionals
freedom to form voluntary organizations for the purpose of negotiating
contracts with an HMO or an insurance company.
2000 Ron Paul 61:3
As an OB-GYN with
over 30
years in practice, I am well aware of how young physicians coming out
of medical school feel compelled to sign contracts with HMOs that may
contain clauses that compromise their professional integrity. For
example, many physicians are contractually forbidden from discussing
all available treatment options with their patients because the HMO
gatekeeper has deemed certain treatment options too expensive. In my
own practice, I have tried hard not to sign contracts with any health
insurance company that infringed on my ability to practice medicine in
the best interests of my patients and I have always counseled my
professional colleagues to do the same. Unfortunately, because of the
dominance of the HMO in todays health care market, many health care
professionals cannot sustain a medical practice unless they agree to
conform their practice to the dictates of some HMO.
2000 Ron Paul 61:4
One way health care
professionals could counter the power of the HMOs would be to form a
voluntary association for the purpose of negotiating with an HMO or an
insurance company. However, health care professionals who attempt to
form such a group run the risk of persecution under federal anti-trust
laws. This not only reduces the ability of health care professionals to
negotiate with HMOs on a level playing field, it, like existing
antitrust laws, are an unconstitutional violation of medical
professionals freedom of contract and association.
2000 Ron Paul 61:5
Under the United
States
Constitution, the federal government has no authority to interfere with
the private contracts of American citizens. Furthermore, the
prohibitions on contracting contained in the Sherman antitrust laws are
based on a flawed economic theory: that federal regulators can improve
upon market outcomes by restricting the rights of certain market
participants deemed too powerful by the government. In fact, anti-trust
laws harm consumers by preventing the operation of the free-market,
causing prices to rise, quality to suffer, and, as is certainly the
case with the relationship between the HMOs and medical professionals,
favoring certain industries over others. In fact, Mr. Speaker, I would
hope that my colleagues would see the folly of antitrust laws and
support my Market Process Restoration Act (H.R. 1789), which repeals
all federal antitrust laws.
2000 Ron Paul 61:6
By restoring the
freedom of
medical professionals to voluntarily come together to negotiate as a
group with HMOs and insurance companies, this bill removes a
government-imposed barrier to a true free market in health care. I am
quite pleased that this bill does not infringe on the rights of health
care professionals by forcing them to join a bargaining organization
against their will. Contrary to the claims of some of its opponents,
H.R. 1304 in no way extends the scourge of federally-mandated
compulsory unionism to the health care professions. While Congress
should protect the right of all Americans to join organizations for the
purpose of bargaining collectively, Congress also has a moral
responsibility to ensure that no worker is forced by law to join or
financially support such an organization.
2000 Ron Paul 61:7
Mr. Chairman, it is
my hope
that Congress will follow up on its action today by empowering patients
to control their health care by providing all Americans with access to
Medical Saving Accounts (MSAs) and large tax credits for their health
care expenses. Putting individuals back in charge of their own health
care decisions will enable patients to work with providers to ensure
they receive the best possible health care at the lowest possible
price. If providers and patients have the ability to form the
contractual arrangements that they found most beneficial to them, the
HMO monster would wither on the vine without the imposition of new
federal regulations on the insurance industry.
2000 Ron Paul 61:8
In conclusion, Mr.
Chairman,
I urge my colleagues to support the Quality Health Care Coalition Act
and restore the freedom of contract and association to Americans
health care professionals. Antitrust laws are no more legitimate or
constitutional in the health care market than they are on the software
market. Therefore, I hope my colleagues will not just pass this bill
but will also support my Market Process Restoration Act and exempt all
Americans from antitrust laws. I also urge my colleagues to join me in
working to promote a true free-market in health care by putting
patients back in charge of the health care dollar through means such as
Medical Savings Accounts (MSAs) and individual health care tax credits.
This chapter appeared in Ron Pauls Congressional website at http://www.house.gov/paul/congrec/congrec2000/cr062900health.htm