Health care's ills

Published in USA Today on July 27, 2001

Federal lawmakers seeking to put more legal teeth into the patients' bill of rights should pause to talk with their constituents ("Bill would give patients right to 3rd-party review," Cover Story, News, Tuesday).

By 51%-36%, Americans are more concerned that litigation could increase healthcare costs than with having the ability to sue their healthcare providers.

With estimates that the legislation could increase annual healthcare costs by 1%-4% -- experience favors the higher end of the estimate -- the currently "popular" legislation may well lose its appeal once Americans begin paying their new premiums. Given the general rule of thumb that every 1% rise in healthcare costs leads to 300,000 more uninsured persons, such cost increases could lead to an additional 1.2 million Americans going uninsured.

In addition, despite its high price tag, the legislation is unlikely to improve the responsiveness of the healthcare system to patient needs, as it does little to empower healthcare consumers. Only fundamental reform that shifts the "power of the purse" to patients in a market setting can accomplish this.

Therefore, federal leaders should refrain from imposing this bill's new healthcare litigation "tax" on consumers. Rather, they should pursue reform that would bolster the patient-doctor relationship and not third-party middlemen -- be they managed care providers or health litigation attorneys.

Donald Sutherland
Research Fellow
Institute for SocioEconomic Studies
White Plains, NY