Government-run health care: No cure-all, but bad medicine for Connecticut

Less costly, less risky to improve current system
with practical reforms

(May 4, 2007) Whether a proposal to establish a government-run health care system or a statewide health care purchasing pool, the results will be the same — a far too costly, risky and unsustainable state-run health care system.

Connecticut’s current employer-based health care system provides a strong base, but does need to be bolstered in order to reduce costs, improve quality and increase access to health insurance.

For years, businesses have been urging lawmakers to address the core cost drivers of health care to stem the ever-rising tide of health care costs — and increase access to health insurance. And they have called for the adoption of health care quality improvements in an effort to reduce costs and increase health care access.

Recently, CBIA joined a coalition with the Connecticut Hospital Association and the Connecticut Association of Health Plans that is promoting several steps to bring meaningful improvement to the delivery of health care in the state.

Steps include:

Greater use of electronic medical records to avoid duplication, reduce errors and improve quality of treatment

Widespread adoption of prevention and wellness initiatives to keep people healthier and limit cost increases

Increased provider reimbursement to ensure that everyone gets the quality health care they need when they need it, and eliminate cost-shifting

Availability of more information to consumers about the health care system, so they can make more- informed decisions about their care.

And while most of the comprehensive health care reform measures that have moved forward this year share these common goals, extreme proposals that seek to dismantle the state’s current, private market system have also progressed.

History has shown that government-run systems are far less efficient and more costly than private-sector models. Private market systems result in greater innovation and efficiencies as well as higher quality.

Statewide purchasing pools operate under the erroneous presumption that the larger the health insurance pool, the lower the costs. At the end of the day, large purchasing pools have not been a silver bullet for managing health care costs.

In addition, government-run health care systems are unsustainable and promote health care rationing, with many doctors opting to leave these systems in favor of more financially friendly locations.

Ultimately, the state’s health care system is in need of repair – it is too costly and too many residents live without health insurance. But when you break a bone, you don’t immediately amputate.

Lawmakers should focus their efforts on strengthening Connecticut’s existing system rather than eradicating it.

For more information, contact CBIA’s Eric George at 860-244-1921 or georgee@cbia.com.

CBIA Action Center

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