Not linked on Ron Paul’s Congressional Website.
HON. RON PAUL
OF TEXAS
IN THE HOUSE OF REPRESENTATIVES
Thursday, March 12, 2009
2009 Ron Paul 29:1
Mr. PAUL. Madam 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. For over a decade,
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.
2009 Ron Paul 29:2
Many of my well-meaning colleagues would
deal with the problems created by the HMOs
by expanding the federal government’s 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.
2009 Ron Paul 29:3
As an OB–GYN who spent over 30 years
practicing medicine, 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 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 always counseled my professional
colleagues to do the same. Unfortunately,
because of the dominance of the HMO
in today’s 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.
2009 Ron Paul 29:4
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.
2009 Ron Paul 29:5
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.
2009 Ron Paul 29:6
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.
2009 Ron Paul 29:7
Madam 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 providing
Americans with large tax credits and tax deductions
for their health care expenses, including
a deduction for premiums for a high-deductible
insurance policy purchased in combination
with a Health Savings Account. 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.
2009 Ron Paul 29:8
In conclusion, I urge my colleagues to support
the Quality Health Care Coalition Act and
restore the freedom of contract and association
to America’s 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.
