Kerry Fails to Address the Fundamental Problem – Health Care

Historic Cost Increases. According to the Kaiser Family Foundation, expenditures in the United States on health care have increased 87% since 1990, and are more than 5 times the amount spent in 1980. The $1.3 trillion in national health expenditures (NHE) in 2000 represents 13.2% of the Gross Domestic Product (GDP), more than 8 percentile points higher than the industryís share in 1960. (Kaiser Family Foundation: Trends and Indicators in the Changing Health Care Marketplace 2002)

John Kerryís health proposal is a $900 billion government expansion that does nothing to deal with the underlying factors driving up higher health care costs. (?An Overview and Analysis of the Democratic Presidential Candidatesí Health Care Reform Proposals,î 9/7/03)

Kerry opposes plans to reduce frivolous medical liability lawsuits. According to a 2003 Joint Economic Committee report, meaningful medical liability reform could lower health care costs sufficiently and another 3.9 million Americans could afford health insurance. A recent survey found that 8 out of 10 doctors say they have ordered more tests than they need to as a defensive measure to avoid litigation, and 3 out of 4 refer patients to specialists more often than they believe is medically necessary. The broken medical liability system drives up costs for patients and for taxpayers ? at least $28 billion each year for the federal government alone.

Kerry opposes Health Savings Accounts. A major factor in the rise in health care costs is the removal of the patient from the health care decision-making process. Studies show that consumer-driven health care lowers costs. Aetna recently unveiled results of a nine-month study comparing their consumer-driven HealthFund and a similar population enrolled in the insurerís PPO plan. Costs for HealthFund participants rose by just 1.5%, compared with 15.7% for the control group. (Source: Aetna press release, ?Aetna Research Shows Positive Impact of Consumerism on Health Care Decisions,î 2/16/2004)

Kerryís plan simply shifts the burden to the taxpayer. What Kerry claims is a ?savingsî of 10 percent is simply a shift of the burden of high health care costs to the American taxpayer. In addition, the Kerry reinsurance program is only available to employers and insurers who agree to mandates of the level of coverage, the use of savings, and the eligibility of workers.

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