PUTTING MY NAME WHERE MY MOUTH IS

I've have consistently opposed the so-called medical provider "Certificate of Need" program as it currently exists. The following article in the Alaska Journal of Commerce comments on my co-sponsorship of an initiative for the 2006 ballot to abolish the rule. In other words, I've put my name where my mouth is.

ALASKA JOURNAL OF COMMERCE ARTICLE

Alaskans for Medical Choice and Competition, a group of health care providers and businesses, have filed an initiative with the state Division of Elections that would abolish the state's Certificate of Need program in municipalities with populations over 25,000.

The Certificate of Need program requires health care facilities wishing to add equipment or facilities valued at more than $1 million to first receive licensing from the state.
Paul Fuhs, a marine consultant and lobbyist, filed the petition along with two state legislators, state Reps. Bob Lynn, R-Anchorage, and Vic Kohring, R-Wasilla.

Fuhs said the initiative is aimed at reducing health care costs by promoting competition in medical services in the state's largest communities. Competition is now limited by the Certificate of Need, which Fuhs says allows major health care providers to maintain a monopoly on certain kinds of services offered locally.

Smaller providers are blocked from purchasing equipment and offering services at a lower cost, he said. The proposal would not affect hospitals in medium-sized or smaller communities, Fuhs said.

The two legislative sponsors of the initiative also introduced legislation, in House Bill 287, that would also repeal the Certificate of Need program, mirroring what the initiative would accomplish. House Majority Leader Rep. John Coghill and Finance Co-chair Rep. Mike Chenault are co-sponsors of HB 287 with Lynn and Kohring.

"Consumer choice and competition are the bedrock of the American economy," Lynn said. "Government should not be restricting what qualified medical services people have. If someone can provide the service at a lower cost to the consumer, government should not be standing in the way."

Fuhs said the initiative is being pushed so that if the Legislature fails to act on HB 287 the voters would be able to decide the issue on the ballot.

"Higher health care costs are hurting Alaskan businesses and consumers as more and more people can't afford health insurance," Fuhs said. "High health care costs were also the driving force in last year's legislative battles over state employee retirement systems and workers' compensation. Unless we do something about it, health care costs are going to break the system."

If the initiative petition is approved by Lt. Gov. Loren Leman, signatures must gathered to have the question placed on the 2006 state general election ballot.