Should Congress end the anti-trust exemption for the health insurance companies?

[likearock 2]

Senate Takes Aim At Insurance 'Monopoly'

By Michael McAuliff

Democrats declared war on the health insurance industry this morning, opening hearings on a bill that would strip its anti-trust exemption.

“It’s something that should have been done a long time ago,” said Majority Leader Harry Reid, who argued that insurance companies have gotten so large, “they dominate entire regions of the country.”

“They make more money than any business in America today,” he said. “What a sweet deal they have.”

The entire insurance industry got the exemption in 1945’s McCarran-Ferguson Act on the grounds that it was not engaged in interstate commerce, and, federal anti-trust probes would interfere with state rules.

Unlike other industries, insurance companies are allowed to discuss pricing, territories and other practices that would be considered collusion if not for the exemption.

The hearing comes just three days after a health insurance industry trade group warned its members would raise rates even higher than the 6% a year they are expected to go up already if the Senate Finance committee bill passed yesterday becomes law.

Many lawmakers and the White House saw that as a threat.

Although today’s hearing had been scheduled before, lawmakers used it as a chance to fire back, arguing that ending the exemption would immediately open up competition, and curb rate-setting collusion.

New York Sen. Chuck Schumer cited Justice Department statistics that found 94% of the nation’s insurance markets are “highly concentrated” and that in nearly 40 states, two firms control over half the market.

“That’s not acceptable,” Schumer said, adding that the anti-trust bill should be added to health care legislation. “We need more competition.”

A representative of the insurance industry argued competitors need to be able to share data because they are pricing things that have not happened, and it’s extremely difficult to predict costs and losses.

The senators were skeptical, however, and pointed to testimony by Assistant Attorney General Christine Varney, who argued insurers could still share such “pro-competitive” data.

She suggested strongly the Obama administration favors yanking the anti-trust exemption.

“Repealing the McCarran-Ferguson Act would allow competition to have a greater role in reforming health and medical malpractice insurance markets than would otherwise be the case,” she said.

The insurance industry is taking none of this lying down, and today is firing back with a tough ad in several swing states, charging that the bill passed by the Senate Finance Committee yesterday will hurt seniors.

“Most people agree we need to reform health care, but is it right to ask 10 million seniors on Medicare Advantage for more than their fair share?” the spot says. “Congress has proposed more than $100 billion in cuts to Medicare Advantage.”

It advises people to call their senators and complain.

One witness in the hearing, Robert Hunter, the Consumer Federation of America’s insurance director, noted that since the industry can collude on prices, it could simply pass along the cost of that ad to consumers.

[rushmc 23]

Can somebody explain to me the basics of this?

I understand the anti trust laws but how and why does this fit here?

Also, in the context this is being brought in under sucks. If it was ok before the industry spoke up is must still be ok. The support us or get punished shit has got to end if this country wants to survive

"America will never be destroyed from the outside,
if we falter and lose our freedoms,
it will be because we destroyed ourselves."
Abraham Lincoln

[lawrocket 3]

Yes they should. Do it for unions as well.

And then, so long as the government doesn't exempt itself from antitrust. Nope. Can't do those last two.

Exempting anyone from antitrust is a political gift. Now - after 65 years, it is being used as a selective political weapon.

Is exemption from antitrust bad? Then end it for all.

My wife is hotter than your wife.

[rickjump1 0]

Quote

Yes they should. Do it for unions as well.

And then, so long as the government doesn't exempt itself from antitrust. Nope. Can't do those last two.

Exempting anyone from antitrust is a political gift. Now - after 65 years, it is being used as a selective political weapon.

Is exemption from antitrust bad? Then end it for all.

Damn straight, and I wanna see Geico "health insurance". Let's get some real competition out there.

Do your part for global warming: ban beans and hold all popcorn farts.