FOR IMMEDIATE RELEASE

March 30, 2000

CONTACT:

Jim Edwards202-452-8300, ext. 415

Kerry Lynn Schmit 202-637-3089

John Murray 202-778-8496

(Washington, D.C.) – Sadly, the House Judiciary Committee has approved a doctor cartel bill that can only raise costs and compromise health care for patients. Even as amended, the Quality Health Care Coalition Act, H.R. 1304, remains fundamentally flawed.

The Antitrust Coalition for Consumer Choice in Health Care believes that the legalization of doctor cartels will help doctors at the expense of their patients, just as the OPEC oil cartel has hurt American consumers.

The amended H.R. 1304 removes the protection of the antitrust laws so as to allow legalized price-fixing, boycotts and other anticompetitive behavior that would otherwise be illegal. Unaccountable cartels will inevitably lead to fewer choices for consumers, higher health costs, lower quality of care and diminished competition.

The Congressional Budget Office estimates that the "OPEC for doctors" bill will slash federal tax revenues by $10.9 billion over 10 years -- due to higher insurance premiums -- and raise federal health program costs by $11.3 billion over that same period. According to CBO, doctor income will increase 15 percent on average. CBO also says private health premiums will rise 2.6 percent in 2006. These higher health costs will fall on employees, employers, consumers and taxpayers -- leading to nearly a million more people losing their health coverage.

The full House of Representatives must show good judgment and reject this ill-conceived, anti-consumer bill.

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