Alaska Senate Approves Physician Collective Bargaining Legislation

The Alaska state Senate last week voted 13-6 along party lines to approve legislation (SB 37) that would allow doctors to "collectively negotiate" with insurance companies over fees and other issues without "running afoul of antitrust laws," the AP/Anchorage Daily News reports. According to state Sen. Pete Kelly (R), the bill's sponsor, doctors "can be left to the mercy of huge insurance companies" that set fees and other conditions on medical care. "One of the problems that we have now is that physicians are left with somewhat of a take-it-or-leave-it environment when they're dealing with large insurance companies that are getting larger and larger as time goes by," Kelly said. Under state and federal antitrust laws, doctors "cannot even meet" to discuss an insurance company's conditions, Kelly said. However, state Senate Minority Leader Johnny Ellis (D) said that "no one has shown him that Kelly's bill is necessary," adding, "On a scale of things to be concerned about ... doctors' incomes is just not at the top of my list compared to many other issues." He also pointed out that the bill's "perceived benefits are outweighed by detrimental effect on individuals and small employers," concluding, "I believe this bill will lead directly to higher costs for consumers." According to Ellis, collective negotiations by doctors will "inevitabl[y] result" in higher fees and higher insurance costs, leaving many businesses unable to purchase health insurance for employees. Kelly countered that the legislation "was not just about fees and doctors' incomes," but about patients and conditions that "may be dictated by insurance companies," including "what constitutes necessary care." The bill moves to the state House for approval (Joling, AP/Anchorage Daily News, 4/5).