Republican Bills Tackle Hospital Competition in Health Reform Effort

Republican Bills Tackle Hospital Competition in Health Reform Effort

Responding to the public’s frustration with the rising cost of health care, the Republican Study Committee’s Health Care Task Force, a group of lawmakers working on health reform,  has introduced more bills (June 16), with the latest set aiming to improve hospital competition.

   The bills, sponsored by Reps. Kevin Hern (R – OK), Rick Allen (R – GA), and Victoria Spartz (R-IN) of the Task Forces’ Affordability Subcommittee include the repeal of Obamacare prohibitions on physician-owned hospitals, more oversight of anticompetitive behavior, more transparency in hospital billing practices, and reviewing clauses in health care contracts that restrict competition.

    “To further promote competition, Congress should adopt these bills to set the right conditions for market rivalries,” Joel White, the President of the Council for Affordable Health Coverage (CAHC) said in a statement. “The result could be electric, reducing the price of medical services and lowering premiums significantly.”

Private Coverage Preferred Choice

The bills are in line with the findings of a CAHP poll in April of voters, that found regardless of whether they identify as Republican, Democrat, or Independent, they do not want their health care fundamentally changed but prefer improvements that would lead to better access, expand coverage and lower cost.

Released in April, the poll asked whether voters have coverage and are satisfied with it. Job-based insurance accounted for 46 percent of those polled, with an overall satisfaction rating of 82 percent for all types of coverage.

The poll also found Americans want low-cost, private-sector solutions, not government-controlled social options. Cost-efficiency measures of interest include reforming and expanding the small business tax credit, employee access to tax credits for out-of-pocket expenses in small businesses, small business self-insure options, a high-risk pool, and part-time employee HSAs.

A Door is Opened

“At first glance, the polling results overall show there is an opening for health reform, but it is most likely to succeed if reform is incremental rather than replacing the existing system; for example, expanding coverage while leaving the employer-sponsored insurance system intact,” said Gregg Girvan, Foundation for Research on Equal Opportunity research fellow.

   Girvan says it is interesting that while 82 percent said they were satisfied with their coverage, 51 percent want to “keep the basics of the current health care system in place but make improvements where we can.”

“The pollster seems to conclude the high level of satisfaction with insurance coverage is the main reason voters do not want fundamental changes to the system,” Girvan said. “That is certainly one plausible interpretation and lines up with other polling that indicates support for proposals like Medicare for All drops when people realize how their employer-sponsored plans are likely to be affected…it signals underlying discontent with existing coverage that isn’t immediately obvious with polling that asks about general satisfaction with health coverage.”

The poll misses an opportunity, however, to explore satisfaction further.

“The polling results don’t necessarily mean people think their coverage could not be better,” Girvan said. “Other polling suggests people are still worried about unexpected medical bills, the amount of their deductibles and other cost-sharing, and rising prescription drug costs, especially in light of recent concerns over inflation. These concerns signal possible discontent with available coverage options.”

The Focus for Legislators

While the Health Care Task Force attempts to fix health care step by step, Republicans need to work harder on winning in the court of public opinion.

The poll found that 42 percent trust Democrats on health care while 34 percent trusted Republicans. Twenty-five percent indicated they weren’t sure.

The poll has something for both Republicans and Democrats, White told Health Care News.

“CAHC polling shows Americans do not believe Congress is addressing their health care priorities. While lawmakers focus on government takeover of health care, they are ignoring that most Americans have coverage, and like it. A lot. Most get coverage through their employer and are concerned about rising health costs and want Congress to do something about it,” said White.

“One idea with stratospheric bipartisan support is lowering out-of-pocket costs, like expanded use of health savings accounts. Congress could easily make this a reality by updating HSA rules to allow more Americans access to health savings accounts and expand how those accounts can be used.”

 John Goodman, the president of the Goodman Institute of Public Policy Research and co-publisher of Health Care News says the solution is straightforward.

  “People should be able to buy insurance that meets their financial and health care needs – as an alternative to the outrageous deductibles and unaffordable premiums in the Democrat-created health insurance exchange plans,” said Goodman. “People with serious health problems should be able to buy insurance that gives them access to the doctors they need — as an alternative to the narrow provider networks in the Democrat-created health insurance exchange plans.”

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