Making Healthcare More Affordable
By Representative Dean Heller (NV)
Americans have reached a point where prescription drug prices and the cost of health care have become increasingly burdensome. Moreover, according to the U.S. Census Bureau, more than 46 million people are uninsured in the United States. Clearly, a problem exists. Reducing the cost of health care services requires meaningful tort reform, making insurance more affordable, and providing market-based solutions to fulfill consumer needs.
Excessive lawsuits are one of the greatest obstacles to lowering our insurance and medical costs. Frivolous lawsuits are out of control, and cost physicians, hospitals, and insurance companies millions. These costs are passed on to you and me, the health care consumer. The cost of medical liability insurance actually forces doctors out of business, and reduces options for, and access to, care. This results in higher costs for patients. Tort reform would curtail this out-of-control system and restore some balance. As a federal legislator, I am leery of acting in an area that is traditionally a state function. However, I do believe the federal and state governments can work together to find a satisfactory solution to this problem.
Approximately 60% of our uninsured workers depend on small employers who lack the ability to provide health benefits for their workers. Small business health plans (sometimes called association health plans) are a part of the solution to increasing access to quality health care. These uniform multi-state products could be offered through individual businesses or professional organizations, thereby allowing small businesses the same buying power as large corporations and unions. For example, a member of the U.S. Chamber of Commerce could negotiate health insurance prices based upon the buying power of its entire membership. If more people are insured, the financial burden on hospitals and taxpayers both will decrease by reducing the amount of indigent health care that hospitals must provide.
In conjunction with small business health plans we should expand health savings accounts that allow beneficial tax treatment to help manage yearly medical costs. This money could be used for dental and medical expenses not covered by insurance, and operates in conjunction with a high-deductible insurance policy. Consumers would have a better way of managing their medical expenses and market forces and competition would be injected into the health care system.
Finally, the cost of prescription drugs has become a financial burden. On average, Americans pay three times more for prescription drugs than citizens of other countries. We must foster more competition in the pharmaceutical industry to lower the cost of prescription drugs. Greater competition through drug re-importation from Canada could help lower prescription drug prices.
Health care will be a top issue for the American public in the 110th Congress. I intend to explore reasonable options to allow the market and competition, in conjunction with appropriate tax treatment and incentives, to help lower the cost and improve the level of service to the American people.
June 2007
