One reason you're getting screwed by your insurance company

The New York Times ran a story the other day noting that, because of the McCarran-Ferguson Act, initiated in 1945, insurance companies enjoy a "limited exemption to national antitrust laws" in that the act allows states to regulate insurers within their boundaries.

Senator Harry Reid told the Senate Judiciary Committee that this act is the legal loophole which has allowed insurance companies to jack up their prices to unreasonable levels. According to The NYT, Reid and "other critics ... say the law allows insurers to monopolize markets and fix prices in ways that are usually illegal."

But you knew that.

Reid also said that this exemption was "anticompetitive and damaging to the American economy. Health insurance premiums have continued to rise at a rapid rate, forcing businesses to cut back on health insurance coverage and forcing many families to choose between health insurance and basic necessities."

You think?

There's hope on the horizon, however, because Sen. Pat Leahy, a Democrat (naturally) has brought forth a bill known as the Health Insurance Industry Antitrust Enforcement Act that would bring this exemption to an end!

Even better, other Democrats like Charles Schumer (NY) are trying to get this exemption repeal in health care reform legislation being put together by Congress.


The health insurance industry is fighting back, and, as you would expect, citing a phony report they put together with the help of PricewaterhouseCoopers, claiming that such a repeal would force higher insurance premiums. It's the same old song and dance.

It is obvious to everyone but Repugnicans that the health insurance industry report was a smoke-screen to derail any attempt to roll back their exemption to fix prices and monopolize markets.


The devil, you say!