Coalition Releases Video Warning Against Healthcare Rate-Setting

For Immediate Release
May 27, 2020
Contact: Grace Morgan
(202-855-4380)

WASHINGTON, D.C. –  Today, the Coalition Against Rate-Setting (CARS) released a video featuring free-market analysts and activists urging lawmakers to reject healthcare rate-setting. The video’s release comes almost exactly one month after a letter signed by more than 160 economists warned that government interference in healthcare via price-controls “would hurt access to care, especially for patients in rural areas.” Despite these warnings, lawmakers such as Sen. Lamar Alexander (R-Tenn.) and Rep. Frank Pallone (D-N.J.) are considering capping doctors’ pay as a part of the next phase of Coronavirus-related relief legislation during a time when doctors and nurses are being lauded for their heroic work in treating COVID-19 patients.

The video highlights concerns with using rate-setting (price controls) to fix the pressing problem of surprise medical billing. Every year, 1 in 7 discharged patients receive a surprise bill in the mail because their insurance has failed to cover attending physicians at in-network facilities. In the video, Coalition members note that using federal fiat would fail to fix the issue and make matters worse:

“Rate-setting is exactly what limited-government activists warned us about for years…Our leaders must stand firm against rate-setting and understand that rate-setting is little more than Obamacare 2.0” – Ross Marchand, Director of Policy, Taxpayers Protection Alliance

“Taxpayers and patients should be skeptical of price controls under any sort of surprise billing ‘fix’ because price controls create scarcity; the laws of economics teach us that.” – Jason Pye, Vice President of Legislative Affairs, FreedomWorks

“Republican leadership needs to focus on solutions that don’t involve more government regulations and they need to get themselves out of the market and make the doctor-patient relationship better.” – Charles Sauer, President, Market Institute

“You end up with shortages, you end up actually in the long-run with higher costs because you have shortages.” – Elizabeth Wright, Director of Health & Science Policy, Citizens Against Government Waste

“[Rate-setting means] fewer doctors to see you, it means ambulances that can’t take you to the hospital, it means urgent care facilities that are no longer in your neighborhood.” – Ryan Ellis, President, Center for a Free Economy

“We’ve seen the results already if you look to places like California where consumer complaints have gone up nearly 50 percent and doctors and hospitals have had to close their doors because of it.” – Tim Lee, Senior Vice President, Center for Individual Freedom

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