"My point is we are on the verge of a populist reaction to the health system," Professor Reinhardt said.

All that extra use would be a boon to drug makers, Professor Reinhardt said.

Professor Reinhardt predicted the need for price controls, thanks to the lack of generosity in the Senate plan.

Professor Reinhardt would start by "drawing the line on what tests to pay for and how much to pay."

But Professor Reinhardt said that problem was one of the companies' own making.

"I'm personally delighted that the union is now going along" with the changes, Professor Reinhardt said.

"The drug companies will get really hit with countervailing power," Professor Reinhardt said.

Professor Reinhardt said some physicians charged far more for tests conducted in their own offices than other laboratories would charge.

But, Professor Reinhardt said, doctors and hospitals are trapped in it.

"They have an enormous marketing advantage," Professor Reinhardt said of doctors.