In a commentary published earlier this year, Gov. Sarah Palin (R-Alaska) describes her state's proposal to repeal its Certificate of Need (CON) program.
After more than 30 years of such programs, the National Conference of State Legislatures has found there is no solid proof that the state-sponsored CON programs have actually controlled health care costs. In 2004, the Federal Trade Commission and the Department of Justice both asserted that these programs actually contribute to rising prices because they inhibit competitive markets.
Repealing Alaska's current CON program will not only reduce the cost of health care, it will also improve access to health care, allow more competition and improve quality of care for patients, Palin wrote back in February.
Not surprisingly, the health care providers that benefit from the absence of competition are much more enamored of the status quo than the governor, writes The American Spectator. And, for the time being, they have successfully thwarted the governor's reform effort. An aggressive lobbying campaign by the Alaska Hospital and Nursing Home Association prevented Palin's legislative allies from garnering enough votes to pass the measure during this year's session.