Commentary: Healthcare bill is written to increase headlines, not lower costs

There is no denying that California’s healthcare system needs reform. Skyrocketing costs are impacting governments, businesses and people.

That has left everyone to deal with fallout. Sacramento needs to act, but changes to our healthcare system demand a thoughtful approach.

Democrats in Sacramento have introduced a bill that falls woefully short of that standard. Their radical proposal to have a board of political appointees set prices for almost all healthcare services seems designed to grab headlines rather than improving healthcare. While it may sound appealing for a government commission to limit prices, a basic understanding of economics tells us that it is not a good idea.

Thanks to high taxes, a poor legal climate and the rising cost of doing business, California is facing a doctor shortage. Fewer medical students want to practice here and current physicians are leaving the state or retiring. California needs more than 8,200 more primary care physicians in the next 12 years. According to the law of supply and demand, when there are too few doctors the cost of medical treatment will go up.

A recent study by UC San Francisco researchers, done at the request of the state Assembly, found that California needs to encourage doctors to specialize in primary care and practice in underserved areas. Rather than address the study’s recommendations, the plan from Capitol Democrats will actually worsen the doctor shortage. If California starts dictating how much doctors are allowed to charge for their services, it will instantly become the least attractive state in the nation to practice medicine.

If Democrats really want to get healthcare right, they might consider working with healthcare providers to find a solution. Sadly, that was not the case with their proposal. It was written with almost no input from doctors, hospitals or insurers. The authors’ disdain for healthcare providers was made clear by their decision to block anyone working in the industry from sitting on the price-setting commission. While an amendment to the bill did away with that ban, it is telling that the bill’s supporters didn’t think some of the most knowledgeable healthcare experts deserve a seat at the table.

California needs to address the rising cost of healthcare. Our current system is failing patients and providers. That is not OK. A real solution will take input from all stakeholders, fix the doctor shortage and lower costs. California deserves better than an ill-conceived attempt to set prices without addressing any of the underlying problems.

MATTHEW HARPER represents the 74th District in the state Assembly.