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Lowering the Cost of Healthcare

Capitol Report
By
Rod Jetton
February 17th, 2006
www.rodjetton.org

Lowering the Cost of Healthcare

Last week, I wrote about some commonsense solutions to help Missouri families afford quality healthcare. While Health Savings Accounts are a great way for Missourians to deal with the rising cost of medical care, we need to find ways to lower the cost of healthcare for everybody. This week, important legislation was introduced that should do just that.

One of the causes of high healthcare costs for patients and their families is that doctors are being forced to pay enormous medical malpractice insurance premiums. To stay in business, the doctor has to transfer these higher costs to his patients. Sometimes that is not enough. If a doctor is not able to make up the increased expense of insurance by passing the extra cost on to the patients, he may have to limit his practice, reduce his services, or close his doors altogether.

Rural areas are hit the hardest when this happens. People in rural Missouri have to travel farther than other communities in order to have access to healthcare. If one of their doctors or clinics is forced to shut down, they may not have any other place they can realistically travel to in order to receive the care they need.

The numbers show just how bad this situation has become. For example, in his State of the Union address, President Bush revealed that there were around 1,500 counties across the nation that do not have an OB/GYN. This is a very dangerous situation for the women in these counties.

There are two basic ways we can attack this problem. The first step was legal reform. This is something we were able to finally pass last year. By cracking down on junk lawsuits, we allow insurance companies to lower the premiums they charge their doctors. This reduces the costs for the doctors, and they are able to stay in business and keep their services affordable.

This year, we are focusing on the second step-insurance reform. We must address medical malpractice insurance reform this session in order to complete the loop and further reduce costs to doctors and patients. A bill was filed this week to address that issue. Following are some key features of the measure.

First, insurance companies will be required to inform a medical provider--such as your doctor, a hospital, a dentist, etc.--before canceling his medical malpractice insurance policy. Additionally, the insurance companies will be required to file their premium rates with the Department of Insurance.

Next, there will be regulations which insurance companies must abide by if they intend to raise premiums. Specifically, the company will not be allowed to raise a doctor's premium by more than 10 percent, and they cannot decide to terminate the doctor's policy without giving him 60 days notice.

To help standardize costs, the Department of Insurance will be asked to establish 12 to 20 risk-reporting categories. Categories of higher risk would be matched with higher premiums. For example, the work of a brain surgeon carries considerably more risk than your general family physician. So, the family doctor shouldn't be forced to pay the same premiums as the neurosurgeon. Insurance companies will also report the premium rates they charge for each risk category to the Department of Insurance.

These changes are commonsense measures to keep insurance companies honest. Insurance companies will be held in check without having necessary business curtailed. With stable premiums, doctors will be able to keep their doors open and their prices down. That translates into more affordable and more accessible healthcare for all Missourians.

As always, if you have any questions on this or any other issue, I can be reached at 573-751-5912 in my Jefferson City office, or through the mail at: Speaker Rod Jetton, State Capitol, Jefferson City, MO, 65101. Also, you can reach me through email at rod.jetton@house.mo.gov

Speaker Rod Jetton, 201 West Capitol Ave. Jefferson City, Missouri 65101
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Democrats found guilty of campaign fraud

An agreement steming from FEC findings of multiple violations of the Federal Election Campaign Act (FECA) during the 1999-2000 election cycle, including failure to report the receipt and transfer of excessive contributions, acceptance of prohibited contributions and failure to report their receipt and transfer, misstatements of the party’s financial activity and failure to report debts led to an agreement for the party to retain an independent firm to audit its compliance with federal campaign finance laws in 2005 and 2006. The case was initiated following an FEC audit. The committee has been audited by the FEC after each election cycle from 1996 through 2002 due to irregularities in its financial reporting.

Specifically, the Missouri Democratic State Central Committee violated the law during the 2000 election cycle by:
o failing to report the receipt and transfer to the party’s nonfederal account of $176,125 in excessive contributions;
o failing to report $159,500 in prohibited corporate and labor contributions;
accepting $69,500 in prohibited contributions;
misreporting their receipts, disbursements and cash-on-hand;
o failing to disclose outstanding debts totaling over $620,000; and
o failing to report the receipt of a $5,000 contribution.

See FEC web site

Click here for case summary

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RNC Celebrates Black History Month

On July 6, 1854, a group determined to abolish slavery in America met to form the Republican Party. Within two years, Republicans unwilling to endure the pro-slavery platform of the Democratic Party nominated John C. Fremont as their presidential candidate. Fremont's slogan, "Free soil, Free Labor, Free Speech, Free Men, Fremont!" clearly highlighted the GOP's dedication to liberty for all Americans. Within four years, the nation would elect Abraham Lincoln as the first Republican president. As Lincoln pursued the principles of freedom for all, he sought the counsel of the great African American abolitionist, Frederick Douglass. The work of men like Frederick Douglass helped pave the way for Republican pioneers like Joseph H. Rainey and Hiram H. Revels, who in the early 1870s became the first African American members of the United States House of Representatives and the United States Senate respectively. We owe the celebration of Black History Month, and more importantly, the study of black history, to Dr. Carter G. Woodson. Woodson chose the second week of February for Negro History Week (now Black History Month) because it marks the birthdays of two men who greatly influenced the African American population, Frederick Douglass and Abraham Lincoln. During Black History Month, we salute our Republican forefathers and recognize that we continue to Stand on the Shoulders of these Republican Giants who paved the way for our continued success.

See GOP's Black History Month web site