California bill allowing government to determine healthcare pricing met with fierce opposition

California legislators introduced a bill to allow the state to dictate the cost of healthcare in commercial markets, which is being met with fierce opposition.

Anesthesia Business Consultant's President and CEO Tony Mira outlined what you should know, in a recent blog post.

1. The bill would create the California Health Care Cost, Quality and Equity Commission. Thirty-six healthcare organizations are opposing it, including the American Society of Anesthesiologists, California Society of Anesthesiologists and American Association of Nurse Anesthetists.

2. Past CSA President Linda Bertzberg, MD, said the bill was, "one of the most poorly conceived and dangerous bills regarding healthcare that we have seen in California in some time."

3. If passed, the bill would create a nine-person commission that would control in-state healthcare costs, setting the prices for all healthcare services in the commercial market.

4. Supporters of the bill argue it would increase access to healthcare by lowering prices across the state.

5. As stated in the proposal, premiums for employer-sponsored insurance increased 234 percent from 2002 to 2016. Approximately 83 percent of those price increases were driven by inflation.

6. The commission would use Medicare reimbursement as the benchmark for prices, considering operating cost and geographic location when determining rates. The commission would meet at least quarterly and revise prices annually.

7. Opponents of the measure believe the price caps would cause hospitals to cut back on services, causing physicians to leave the state. They also believe the price caps would hinder physician recruitment.

8. The California Medical Association said, "[The bill is] a harmful government intrusion into the healthcare market that would ...create state-sanctioned rationing and increase out-of-pocket costs for patients."

9. If passed, the California Hospital Association believes 175,000 hospital jobs would be lost and an unspecified amount of hospitals and practices would have to close.

10. CMA surveyed 359 California physicians on the bill. Approximately 92 percent opposed the bill, 57 percent said they'd leave California as a result and 39 percent said they'd retire early.

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