Calls for states to repeal, scale-back laws to drive down costs

There are several areas where state and federal rules limit choice and competition in healthcare, according to a government report released this month.

“Choice and competition” are key when it comes to Americans receiving high quality healthcare at affordable prices, the federal report states.

But unfortunately healthcare spending keeps going up and healthcare consumers do not have enough choices in the marketplace, it says.

Additionally, wages are not keeping up with the rising costs of insurance premiums and out-of-pocket expenses, the report adds.

Here are the four areas identified in the report to remove barriers to “choice and competition.”

1. A lack of competition causes healthcare costs to rise and “negatively impacts overall healthcare quality . . .,” the report says. Policies have reduced the number of providers and restricted the range of services they can offer. Telehealth should be promoted to allow doctors to more easily meet patients’ needs. Funding for graduate medical education should be “streamlined” to address physician shortages.

2. The report calls for states to repeal or scale back laws that restrict entry into provider markets. Certificate of Need laws can limit competition and choice and “stifle” innovation.

3. Many health insurance plans cover services that consumers do not want or need, driving up premiums. The report calls for reducing government mandates and allowing consumers more coverage choices that meet people’s diverse needs.

4. The report also cites the heavy reliance on third-party payers and recommends giving consumers more control over their healthcare dollars. This will provide consumers with incentive to search for the lowest cost and most high quality care, according to the report, which promotes tools such as Health Savings Accounts.