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B-202458 1 (1981-05-08)

handle is hein.gao/gaobabkao0001 and id is 1 raw text is: 0- f5 (-7 - COMPTROLLER GENERAL OF THE UNITED STATES , WASHINGTON D.C. 20548 B-202458 May 8, 1981 The Honorable John D. Dingell Chairman, Committee on Energy and Commerce House of Representatives Dear Mr. Chairman: Your letter of February-24,--1981,requested our comment) on HR 8507 The bill proposes to implementa competitive system of healtf care adlivery and financing by repealing all Federal health system regulatory programs, including Professional Standards Review Organizations (PSROs), uniform reporting, capital expenditure limi- tations, health maintenance organizations (HMOs), and the health planning program. The bill proposes major structural reforms to initiate a competitive system based on individual choice under which each person is permitted to select the method of health care delivery which he believes is most appropriate for himself and his family with Federal financial assistance as is necessary. 'The bill proposes a complex system whereby individuals are given the opportunity to choose from a variety of qualified plans (organizations that finance and deliver health services) based on their cost, quality, and method of delivering care, thus creating an informed, flexible, and financially Imotivated consumer demand to which qualified plans will respond. 5 In addition,the bill provides that any local or State law that prevents or impedes the proposed system is preempted. -j §We have provided comments on the Administration's proposed budget changes to phasg out the PSRO, health planning, and HMO programs.I) Generally, with the exception of the PSRO part of the proposal, our comments on these proposals have been supportive of the proposals,(see enclosure). The proposed complex system of providing and financing health care represents a significant departure from the existing system.>i H I HRI-BILL-09

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