Kentucky politicians of both parties need help understanding that artificially limiting the supply of healthcare services keeps prices artificially high.
Fortunately, Alaska Governor Sarah Palin gets it. Senate President David Williams is Sen. John McCain's campaign chairman for Kentucky. Maybe he can get Palin to come here and explain it to him like she did to the Anchorage (Alaska) Daily News back in February:
"The Certificate of Need is being used by lobbyists and health-care organizations to limit competition -- through appeal of other's certificate awards or by filing suit against the state for those awards. As one member of a citizen committee studying CON in 2007 put it: "the only voices heard (testifying for continuing CON even more stringently) were from the financially vested physicians and hospitals." Currently, there are seven active Certificate of Need lawsuits involving the state and private sector health-care providers."
"As I said recently in my State of the State Address to the Legislature, "Under our present Certificate of Need process, costs and needs don't drive health-care choices -- bureaucracy does. Our system is broken and expensive." Eliminating the CON program, with certain exceptions, will allow free-market competition and reduce onerous government regulation."
After Palin comes here and sets us straight, then she could go talk to officials in Pennsylvania, Florida, and Michigan and show them how to lower their healthcare costs.
8 comments:
I don't know all the nuances to this issue, but I do know that in the private health insurance system, the insurance company is at odds with the hospitals and physicians. They negotiate costs. Also, the insurance company is at odds with their clients, since it is in their best interests to NOT cover items of health care. This aligns the patient with the doctors/hospitals against the insurance companies (and this makes sense, as the physicians and their patients ought to be on the same "team"). So, any policy the doctors and hospitals are in favor of, I am inclined, as a prospective patient, to be in favor of. Just using logic hear. Maybe you could shed some light on this whole situation (what CON's do, for example, as it relates to WHY they cause higher health care costs).
The world just isn't the kind of zero-sum game you suggest here. There is too much competition for every transaction to involve someone getting screwed.
When our policies create a competitive environment, it works out much differently. Insurance companies that delay payment of claims and hassle customers would lose business to those who take care of their customers. That is the kind of market we had until Frankfort destroyed our health insurance industry in 1994. With nearly four dozen insurers, one didn't dare risk gaining a reputation for cheating consumers. Today it is much easier to cut corners because there is so much less competition.
Pricing of health services works the same way. If we had more competition, health providers would be forced to provide the best service they could at the best price possible or risk losing business. Certificate of Need prevents this from happening by limiting the availability of services.
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