HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Wednesday, March 12, 2003
2003 Ron Paul 32:1
Mr. PAUL. Mr. Speaker, I am pleased to introduce 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.
2003 Ron Paul 32:2
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
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.
2003 Ron Paul 32:3
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.
2003 Ron Paul 32:4
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, but also constitutes an unconstitutional
violation of medical professionals freedom
of contract and association.
2003 Ron Paul 32:5
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
which holds 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.
2003 Ron Paul 32:6
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. Of course, this bill does not infringe on
the rights of health care professionals by forcing
them to join a bargaining organization
against their will. While Congress should protect
the rights 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.
2003 Ron Paul 32:7
Mr. Speaker, it is my hope that Congress will not only remove the restraints on medical
professionals freedom of contract, but will
also empower patients to control their health
care by passing my Comprehensive Health
Care Reform Act. The Comprehensive Health
Care Reform Act puts individuals back in
charge of their own health care by expanding
access to Medical Savings Accounts and providing
Americans with large tax credits and tax
deductions 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 find most beneficial to them, the
HMO monster will wither on the vine without
the imposition of new federal regulations on
the insurance industry.
2003 Ron Paul 32:8
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 Americas health care
professionals. 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 by supporting
my Comprehensive Health Care Reform Act.