Antitrust Laws Insurance
Why are health insurance companies still have an antitrust exemption?
Public health law reform seeks historical curb what many see as the most heinous crimes of the insurance industry. It gives the federal government – as well as individual states – more power to regulated tariffs, and refuse to premium increases if they see fit. Also be required to spend a higher percentage of premiums collected in the provision of health care in compared to administrative costs or profits.
Despite these improvements for consumers, one major problem remains present. The law does not take any action to repeal the antitrust exemption for health insurance. Such exemption is enjoyed only by a limited number of industries, including Major League Baseball. Basic Economic theory states that the potential of monopolies and collusion reduces competition in the market. Less competition means higher prices.
In many areas, a health insurer dominates. Therefore, consumers have not been able to be best prices around. Exchange regulated markets created by the Act are a start towards injecting more competition, but it is strange that Congress and the administration Obama did not take one more step toward the ends. The repeal of the antitrust exemption would also help lower premiums.
Technically, health plan providers are not fully exempt from antitrust laws. Rather, subject to another (rather than federal law) rules – including those relating to competition law – as a result of the 1945 McCarran-Ferguson Act. Historically, States have rarely used this power to prosecute companies. Some experts believe that Congress leave the issue only if the States to intensify the implementation of its own laws Antitrust.
There was an attempt to include the reform of the antitrust laws: the original House bill included. However, it was in the Senate bill that was passed last month. The reconciliation process does not allow the House to include this provision in the final product. Now, several representatives have introduced and passed a separate bill that reaches the same goal. Get the repeal of the McCarran-Ferguson Act in the Senate will difficult, as now the Democrats lack a filibuster-proof majority. The objectives of the draft law, however, could gain some Republican support moderate – that encourages affordable health insurance through greater competition in the free market which is a stated goal of yours. However, the Republican Party may decide to unite and block the bill simply because it was proposed by Democrats before the 2010 elections mid-term.
About the Author
(Image: Keith Burtis under CC 3.0)
Yamileth Medina is an up and coming expert on Affordable Health Insurance and Healthcare Reform. She aims to help people realize that they can find a quality health insurance plan right now. Yamileth lives in Miami, FL.
DN! Congress Considers (2) Revoking Health Insurance Industry’s Exemption from Antitrust Laws
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