Ehrlich on Washington column, April 12, 1998

MEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1 407 York Road, Sui*e 304 Lutherville, Maryland 21093 EHRLICH ON WASHINGTON By Congressman Robert L. Ehrlich, Jr. 315 Cannon House Office Building Washington, D.C. 20515 Week of April 12, 1998 CONGRESS WILL ADDRESS MANAGED CARE REFORM Whether I am meeting with a parent, a senior citizen, a small business owner, or a corporate vice president, it becomes clear that one important issue— the cost and quality of health care— remains at or near the top of everyone’s agenda. This year, improving the quality of health care in the United States, especially the services provided through health maintenance organizations (HMOs), is high on Congress’ agenda as well. As you know, HMOs were created in order to enable employers to offer quality health care to their employees while controlling costs. Over time, concerns have been raised by patients and providers alike over the extent to which cost-cutting concerns have infringed upon the traditional doctor-patient relationship. These concerns have prompted a flurry of bills in Congress. Some call for setting federal standards for the type of coverage offered by HMOs. Others would ban rules preventing doctors from informing patients about all treatment options. At the forefront of these bills is the Patient Access to Responsible Care Act (PARCA), introduced by Congressman Charlie Norwood (R-GA). In addition to the reforms outlined above, PARCA contains a number of well-intentioned, allegedly pro-consumer initiatives. As currently written, however, PARCA would impose an estimated 500 new federal regulations on the health care industry. I am concerned the legislative mandates outlined in PARCA will translate into higher costs for consumers, families, and employers. Some of the proposals outlined in PARCA sound good, though the bill’s unintended consequences— higher health insurance premiums and even termination of health-care