H.R. 1304 Would Mean Higher Health Care Costs for Consumers, Employers and the Government

Dear Members of Congress:

We are writing to express our strong opposition to H.R. 1304, the "Quality Health-Care Coalition Act of 1999." ' As professors in law, economics and health services research, we understand the importance of competition in the health care marketplace. We are very concerned that H.R. 1304 would severely impede this competition, especially in markets for health care financing and physician services. Competition has been so important in controlling health care spending over the past decade. Further, competition has been important in providing incentives to develop innovative ways to improve health care quality and expand access to health care services.

H.R. 1304 is a radical departure from the current approach. The bill would give an antitrust exemption to physicians and other health care professionals that would allow them to engage in price-fixing and group boycotts in their negotiations with health plans. For example, all the physicians in a market could conceivably form a single cartel and demand excessive fee increases. The likely impact of H.R. 1304 would be higher health care expenditures for consumers, employers, and government-sponsored health care programs.

We urge you to vote against H.R. 1304.

Richard J. Arnould, Ph.D.

Professor and Director of the Program in
Health Economics and Policy University of Illinois/Urbana-Champaign

Paul J. Feldstein, Ph.D.

Professor

Graduate School of Management

University of California at Irvine

Peter J. Hammer, J.D., Ph.D.

Assistant Professor

University of Michigan Law School

Roger G. Noll, Ph.D.

Professor of Economics

Stanford University

Lee Benham, Ph.D.

Professor of Economics

Washington University, St. Louis

H.E. Frech III, Ph.D.

Professor of Economics

University of California, Santa Barbara

Clark C. Havighurst, J.D.

Wm. Neal Reynolds Professor of Law

Duke University

John A. Rizzo, Ph.D.

Associate Professor of Public Health

Yale University

Bryan E. Dowd, Ph.D.

Professor

Division of Health Services Research and Policy

University of Minnesota

Martin Gaynor, Ph.D.

E.J. Barone Professor of Economics and
Health Policy

Carnegie Mellon University

Emmett B. Keeler, Ph.D.

Faculty Member

Rand Graduate School

Miron Stano, Ph.D.

Professor of Economics and Management

Oakland University

David Dranove, M.B.A., Ph.D.

Professor of Health Services Management

Northwestern University

Allen C. Goodman, Ph.D.

Department of Economics

Wayne State University

Stephen R. Latham, J.D., Ph.D.

Director, Center for Health Law & Policy

Quinnipiac College School of Law

Robert J. Town, Ph.D.

Assistant Professor

University of California-Irvine

Randall P. Ellis, Ph.D.

Professor of Economics

Boston University

Thomas Greaney, J.D.

Professor

St. Louis University School of Law

Lee Mobley, Ph.D.

Associate Professor of Economics

Oakland University

Deborah Haas-Wilson, Ph.D.

Professor of Economics

Director of the Public Policy Program

Smith College

Roger Feldman, Ph.D.

Professor of Public Health

Boston of Minnesota

Sherry Glied, Ph.D.

Associate Professor

Joseph L. Mailman School of Public Health

Columbia University

Michael A. Morrisey, Ph.D.

Professor

University of Alabama at Birmingham

Jack Zwanziger, Ph.D.

Associate Professor

Department of Community and
Preventive Medicine

University of Rochester

 

 

Fiona Scott Morton, Ph.D.

Assistant Professor of Economics and Strategy

University of Chicago

 

Paid for by

The Antitrust Coalition for Consumer Choice in Health Care

A diverse group of employers, health plans, providers and others involved in the purchase, management, and delivery of health care services.