Talking Points: Government’s Stranglehold on Health Care

  • Government has a stranglehold on America’s health care system. From medicines to equipment, from hospitals to insurance, every aspect of health care is heavily controlled and regulated by federal, state, and local governments.
  • At the start of the pandemic, only the Centers for Disease Control and Prevention was allowed to develop a test kit for the coronavirus. That test kit proved to be flawed. At the end of February, two months after the potential pandemic was identified, other labs were finally allowed to develop test kits. In the meantime, infected individuals spread the virus across the country.
  • No drug, personal protective equipment, treatment, or medical device can be legally sold in the United States without the approval of the Food and Drug Administration. That approval process delayed the production of desperately needed medical equipment and drugs.
  • State and local laws also hinder the provision of health care services. Occupational licensing prohibits individuals from offering services without the government’s approval. “Certificate of Need” laws prohibit hospitals from expanding their facilities without the government’s approval.
  • Government regulations and controls on businesses and individuals prevented the rapid scaling up of test kits, personal protective equipment, vaccines, and other resources needed to combat the coronavirus. “Flattening the curve” was the “solution” to an anticipated shortage of medical equipment and supplies. The true solution to a production shortage is to free the producers—repeal the regulations and controls that stifle production.
  • When the Food and Drug Administration relaxed its regulations, production of equipment, test kits, and other medical resources soared. By then, the virus had spread to nearly every state.
  • Had the government’s stranglehold on health care not existed, individuals, laboratories, and businesses would have been free to respond quickly. The nation would have been better prepared and better able to cope with the pandemic.

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