Antitrust Coalition Statement Opposing New Legislation

ANTITRUST COALITION FOR CONSUMER CHOICE IN HEALTH CARE

1150 17th St., N.W.
Suite 601
Washington, D.C. 20036
(202) 721-0363
www.healthantitrust.org

(March 7, 2002) - The Antitrust Coalition for Consumer Choice in Health Care today released the following statement:

"Harmful antitrust legislation has been introduced in Congress that will hurt patients by limiting their health care choices and raising their costs. The Antitrust Coalition vigorously opposes the so-called 'Health Care Antitrust Improvements Act.'

"The bill would allow doctors to form cartels by giving them a virtual antitrust exemption and freeing them from adequate oversight or accountability.

"This bill is tantamount to granting physicians an exemption from antitrust law. It would leave patients with fewer choices, higher costs and less access to health coverage at a time when they want greater choice, expanded access and reasonably priced, high-quality health care.

"Doctor cartels reduce competition and force consumers to pay more for health care. Other easily foreseeable consequences include lower quality, fewer consumer choices, patient exposure to 'balance billing' and more uninsured Americans. Rural areas would suffer because of the substantial market power of their few doctors.

"Proponents claim they need this antitrust measure to 'level the playing field' for doctors bargaining with health plans and hospitals. However, doctor groups already exert significant clout in the marketplace. The bill would let cartels demand almost anything and enforce their demands with anticompetitive behavior that's presently illegal.

"Employers, who voluntarily provide health coverage to more than 177 million workers, retirees and dependents, and their employees would suffer higher premiums, higher out-of-pocket expenses, higher copayments and possibly reduced benefits.

"Nonphysician provider groups, such as the American College of Nurse Midwives, that belong to the Antitrust Coalition believe this bill will give doctors the legal means to limit the services of advance practice nurses. Subtle exclusionary practices could occur, such as demanding contract terms that effectively put nonphysician providers at a tremendous competitive disadvantage. Consumers would have fewer options available for the treatment they need.

"Also, consumers would quickly lose contractual protections that keep doctors from billing patients for medical care over and above what their insurance will pay. Medical associations have long opposed contractual prohibitions against such 'balance billing' of patients. These consumer protections would be an early target that would increase patients' out-of-pocket costs for physician services.

"The Coalition strongly urges Congress not to enact this anticonsumer legislation."