OPPOSITION TO THE PRO-COMPETITION HEALTH CARE LEGISLATION

Bills to substitute competition for regulation to contain health care costs have been proposed in both the House and the Senate. Such competition health care bills propose that the employers offer more than one health coverage plan to their employees while the employer's contribution, which is subject to a ceiling, be in the same amount for all employees regardless of the plan they choose.

Should the employer's contribution exceed the imposed ceiling, the excess would be subject to income tax for the employee. Should the employee choose a plan which costs more than the employer contribution, the employee would pay the difference. A plan which costs less than the employer's contribution would entitle the employee to a tax exempt refund.

Consumers receiving Medicare benefits would be similarly treated. Each Medicare beneficiary could elect to continue Medicare benefits or receive a voucher from the government which would allow him to purchase an alternate plan through commercial insurance companies.

In each case, the expected outcome of the competition bills is that providers of medical care (physicians, health care institutions, etc.) would compete for patients by adjusting their fees and that the consumers would shop around for a physician or health care facility that provides the most for the money.

Lacking in these bills is the realization that consumers generally do not have adequate medical knowledge to compare the value of one physician over another. Additionally, the choice of health care facility used is in the control of the physician, not the consumer. It is the physician who determines if, when, where and how treatments are to be rendered to an individual consumer.

In addition, the proposed bills emphasize deductibles without providing evidence that deductibles decrease the total health care cost. Contrary, there is sufficient evidence to show that deductibles discourage individuals, particularly those on fixed incomes, from seeking health maintenance and early diagnosis and treatment.

RESOLVED, the Federation of Nurses and Health Professionals/American Federation of Teachers strongly opposes the passage of health care competition bills currently before the House and Senate.