1.    Federal Health Care Cost Control Act

Section 1 - Findings.

a.    The prices that health care providers charge for goods and services are artificially inflated.

b.    In order to guarantee prompt, continuous and equitable distribution of health care goods
       and services, it is necessary to impose limits on the costs of such goods and services.

Section 2 - Price controls.

a.    There is hereby established a Federal Health Care Costs Commission.

b.    The Commissioner of the Federal Health Care Costs Commission may, by rule or order,
       establish maximum prices for health care products and services.

Section 3 - Inflationary Prices

Health care providers shall not charge inflationary prices for goods and services.
 

2.    Hypo version 2: Federal Health Care Cost Control Act without Section 3.

Question to think about: Is this statute constitutionally valid? What authority supports your
position? Would your answer be any different if the statute provided de novo review of the
agency's decision in court?

3.    Hypo version 3: Federal Health Care Cost Control Act without Section 3, and
       replacing Section 2b. with the following:

Section 2b.    The Commissioner of the Federal Health Care Cost Commission shall, by rule or order,
                       set maximum prices for health care products and services that are generally fair
                       and equitable.

Question to think about: Is this variation of the statute constitutionally valid? What authority
supports your position?

        Same as version 3, except that the AMA, the National Association of Pharmaceutical Companies,
        and the National Hospital Association may draft the price schedules, which must be approved
        by the Commissioner of the Federal Health Care Cost Commission.

Question to think about: Would this variation be more or less constitutionally defensible than
version 3? What authority supports your position?

5.    Hypo version 5:

        Same as version 3 (without addition of version 4), except that the statute provides that price
        controls will only remain in effect for 6 months.

Question to think about: Would this variation be more or less constitutionally defensible than
version 3? What authority supports your position?

6.    Hypo version 6:

        Same as version 3, except that the Federal Health Care Cost Commission (FHCCC) has promulgated
        regulations that provide that the prices set by the FHCCC for products and services will be based
        on the actual cost of developing, marketing and providing the product or service, plus a reasonable
        profit, not to exceed 15% of the actual cost.

Question to think about: Will the agency's regulations affect the constitutionality of the statute?

7.     Hypo version 7:

        Same as version 3, except that the statute authorizes imprisonment and criminal fines against
        persons who charge prices in excess of the maximum prices set by the FHCCC.

Question to think about: Would the constitutional analysis of the statute be any different in this case
than in version 3? What authority supports your position?