The Government Takeover of Hospitals

| | Comments (0)

This is a copy of the Op-Ed that has been submitted to The Union Leader today. I have also submitted a similar letter to the editor in the Laconia Daily Sun, Citizen of Laconia, Fosters Daily Democrat and Concord Monitor.

The primary sponsor of NH Senate Bill 505, establishing a commission to set rates at private hospitals in NH is State Senate Majority Leader Maggie Hassan (D – Exeter). This bill creates a “Health Services Cost Review Commission” to “review and approve or disapprove hospital rates and rate schedules” and is to be funded by an assessment (see Tax) levied on hospital revenues.

This commission has the ability to determine how large it becomes and is given its own authority to assess and collect a tax on hospital income, identified as “administrative assessment” on “net operating revenues.” Let me repeat that, this commission has the ability to determine it’s own size, how many employees it will have, how much money it needs to operate and to collect that money directly from the hospitals in without legislative oversight. This sounds dangerous to me.

Sen. Hassan, in her press release identifies “Maryland and other states with similar commissions study all the factors that go into hospital costs – including things like the population of Medicaid patients, uncompensated care, severity of illnesses and cost of living in a given region.” What she fails to mention is that Maryland is the ONLY state with a commission like this and that they have a special federal waiver that allows them to set all rates at hospitals including what the state must pay in Medicaid and Medicare reimbursements. Why doesn’t her bill provide the authority to force NH to pay its fair share of the Medicaid and Medicare reimbursements?

One of the driving factors in the disparity charged patients is the fact that NH has one of the lowest reimbursement rates for Medicaid and Medicare in the nation. This disparity has to be made up elsewhere. Hospitals have negotiated reimbursement rates for different procedures from the insurance companies and Sen. Hassan’s point is that an uninsured person receives a bill for the full amount of the cost but misses the point that what the uninsured actually pays is reduced more than the discounted rates insurance companies pay.


The Senator says there is not going to be any difference between this commission and the Public Utilities Commission (PUC) in the way they control costs. Isn’t it interesting comparing this dreadful legislation to the PUC when NH has some of the highest utility costs in the nation? Is she merely saying that the cost to go to a hospital will increase dramatically with decreased reimbursements for Medicaid and Medicare and an increased expense to this commission?

Sen. Hassan, if you want to help to reduce the cost of hospital care then perhaps the hospitals should be paid more for services received under Medicaid and Medicare. Then the loss of revenues won’t have to be passed on to the public.

Why is it good to tax more and more to create a health care plan that increases the size of government? Why is it acceptable to use the socialistic Keynesian Economic approach instead of the Supply and Demand free market approach? 

Dear Senator, if you are truly concerned with the rising cost of health care perhaps you should be looking at bringing more competition in the health insurance industry. Why is the only plan being offered include more bureaucracy and government involvement and has absolutely no cost reduction. 

There are some simple things that can be done to fix the rising costs, if our legislature cared about creating competition, which will drastically reduce costs. Things like reducing the mandates on health insurance, which might get more insurance companies wanting to do business here. You could also open up the market so that people could purchase health insurance across state lines or allow small businesses to pool together into groups of more than 100 employees so greater discounted premiums are available. Don’t forget the opportunity to create some tort reform against frivolous lawsuits so that doctors don’t have to pay a small fortune for malpractice insurance. This will create savings by not paying for unnecessary tests and procedures on defensive medicine.

To quote Charlie Arlinghaus of the Josiah Bartlett Center for Public Policy, “A Health Czar in Washington is a bad idea and three Health Czars (“cost commissioners”) in Concord isn’t any better.”

Let’s not create a government take over of the hospitals and medical industry when all we need is common sense to reduce costs. 

Leave a comment

About this Entry

This page contains a single entry by Greg K published on March 4, 2010 11:36 PM.

It's time to get involved... was the previous entry in this blog.

The Laconia Republican Committee is the next entry in this blog.

Weekly Newsletter

Sign Up Today!

* required

*







Email Marketing by VerticalResponse

My Twitter

Find recent content on the main index or look in the archives to find all content.


View my page on Rebuild the Party


Weekly Newsletter

Sign Up Today!

* required

*







Email Marketing by VerticalResponse

My Twitter

Powered by Movable Type 4.01