Issue:  2006-10-16

HSAs, Fighting High Med Mal Costs Part of Fasos HC Plan

♦ New York

ALBANY, N.Y., October 16 – New Yorks health care is too expensive and too inefficient, according to John Faso, Republican and Conservative candidate for governor, who called for reform of the current system at a meeting in Suffolk county.

Many hard-working state residents cannot afford health insurance due to the costly system, and millions are not receiving the care they need as a result, he pointed out. We need to make lasting reforms that will make health insurance more affordable and available to the greatest extent possible, Faso said.

He put forth a plan calling for health courts for New Yorks burdensome malpractice system, improving affordability and access by limiting service mandates, and reforming state law to allow health saving accounts.

High malpractice costs contribute to a shortage of doctors in high-risk specialties, raise costs for consumers by increasing premiums, and waste resources, Faso said. He added that studies have shown that the malpractice system interferes with the administration of effective health care as well as appropriate restitution. Faso contended that:

Few medical error victims receive compensation in the current system;

As much as 60 percent of rewards are consumed by legal fees and administrative costs;

The legal system discourages health care providers from reporting information on errorsin treatment, hindering patient safety;

High insurance costs drive out doctors and limit patient access;

Rising health care costs encourage defensive medicine, and remove the focus from patient care.

Health courts would ensure more accurate and consistent rulings based on neutral expert information, Faso suggested. He said they would also improve systemic efficiency through reliance on standardized payments according to injury.

Faso said his plan would promote the stability that would result in less defensive medicine and lower health care costs.

Impractical and costly insurance mandates, hidden health care taxes, and special interests have driven up the cost of health care for too long, Faso said. Limiting service mandates will cut costs, make insurance more affordable, and expand availability. Insurance services could also be more appropriately targeted to consumer needs.

His plan also includes a call for reform of the Insurance Law to allow individuals and small businesses to benefit from Health Savings Accounts created by the federal Medicare Modernization Act, where health service agencies allow consumers to pay for medical expenses using pre-tax allowances.

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