Cost of Health Care Regulation May Outweigh Social Benefits, According to Research Presented to JEC

The cost of state and federal health care regulations on "everything from professional liability to drug approvals" outweighs their social benefits, according to preliminary research Duke University economist Christopher Conover presented Thursday at a Joint Economic Committee hearing, CongressDaily reports. Conover's data show that in 2002, health care regulations produced $212 billion in social benefits but cost $340 billion. Although the data is still being refined, Conover said that "the net burden of health services regulation likely exceeds the annual cost of covering all 44 million uninsured by a considerable margin." David Hyman of the University of Maryland Law School said that higher health care costs resulting from overregulation could make health care services inaccessible to some people, according to CongressDaily. "We should not place the poor and less fortunate in the position of choosing between 'nothing but the best and nothing' when it comes to health care coverage," Hyman said. However, Vicki Gottlich of the Center for Medicare Advocacy testified that some health care regulations -- including nursing home regulations implemented in 1987 -- have improved care and reduced costs, CongressDaily reports. "When regulations reflect the best practices of the industry, they are not burdensome," Gottlich said. Rep. Pete Stark (D-Calif.) said that any savings from eliminating regulations likely would not benefit the public at large, adding, "Indeed, the likely result would be insurance companies, hospitals, doctors and pharmaceutical companies pocketing the savings" (CongressDaily, 5/14).