WH: "Repealing the Antitrust Exemption for Health Insurance Companies"

[Clio the Leo]

Repealing the Antitrust Exemption for Health Insurance Companies

Posted by Jesse Lee on February 23, 2010 at 7:52 PM EST

In his press briefing today, Press Secretary Robert Gibbs announced another step to make sure our health care system works for the benefit of American families, not for the benefit of health insurance companies:

Today the President announced the administration’s strong support for repealing the antitrust exemption currently enjoyed by health insurers. At its core, health reform is all about ensuring that American families and businesses have more choices, benefit from more competition, and have greater control over their own health care. Repealing this exemption is an important part of that effort.

Today there are no rules outlawing bid rigging, price fixing, and other insurance company practices that will drive up health care costs, and often drive up their own profits as well.

The President's support was made official in a statement of administration policy (SAP) sent to Congress as the House considers that legislation in the coming days.

STATEMENT OF ADMINISTRATION POLICY
H.R. 4626 — Health Insurance Industry Fair Competition Act
(Rep. Perriello, D-Virginia, and 65 cosponsors)

The Administration strongly supports House passage of H.R. 4626. The repeal of the antitrust exemption in the McCarran-Ferguson Act as it applies to the health insurance industry would give American families and businesses, big and small, more control over their own health care choices by promoting greater insurance competition. The repeal also will outlaw existing, anti-competitive health insurance practices like price fixing, bid rigging, and market allocation that drive up costs for all Americans. Health insurance reform should be built on a strong commitment to competition in all health care markets, including health insurance. This bill will benefit the American health care consumer by ensuring that competition has a prominent role in reforming health insurance markets throughout the Nation.

http://www.whitehouse.gov/blog/2010/02/23/repealing-antitrust-exemption-health-insurance-companies-0

[BrklynLiberal]

1. I will believe it when I see it actually happen

[gateley]

3. I think it will happen. Obama mentioned it specifically, and the outrage country-

wide is growing as this affects more and more people. I think this is a pitchfork issue.

[BrklynLiberal]

4. I fervently hope you are right...er...correct.

[gateley]

7. I hope so, too. We'll see, I guess. nt

[Go2Peace]

5. Glad the President came out on this. It needs to be changed.

[gateley]

8. He called attention to it -- I think more than once. I don't know who wouldn't

be outraged and see the injustice. Unless there's an (R) after your name.

[gateley]

2. Somebody just posted that BC is going to go ahead with their 39% rate increase in

CA -- would this have an effect on that?

I don't quite understand how this industry (and baseball) escaped that oversight. Hell, companies can still screw us over and rake in the profits even WITH regulation!

[andym]

10. Regulators don't have the power to set rates in CA. nt.

[gateley]

11. But can they have guidelines that the industry must adhere to? Like, you can't raise

rates more than ______%?

[andym]

12. Do they? In California?

I live here and I haven't heard anything like that-- I know that legislation to regulate rates has been killed regularly.
Apparently other kinds of insurance rates are regulated in CA, but not health insurance.

Here's a link to an article from the LA times:
http://www.latimes.com/news/nation-and-world/la-na-healthcare-qa23-2010feb23,0,2645665.story
States do regulate insurance, but the outcome is uneven and not always effective. In many states, regulators cannot evaluate and reject rate increases before they take effect. In California, other forms of insurance are regulated this way, but health insurance is not.

Auto insurers, for example, are required to submit increases to a regulatory body for approval before they can start charging customers higher premiums. Consumers can request hearings to examine rate increases of more than 7%.

This regulation has saved California drivers $62 billion since 1988, according to Consumer Watchdog, a consumer advocacy group."

[w4rma]

6. Very good. (nt)

[Cha]

9. Thank you President Obama and Team~

[burning rain]

13. What?

Today the President announced the administration’s strong support for repealing the antitrust exemption currently enjoyed by health insurers.

How does this have any significance? Haven't we been told time and time again that the president does not have even an ounce of power, influence, or sway in Congress? Oh wait--that's only when someone's trying to exonerate the administration for a perceived bad outcome in Congress--when it's giving credit for a good outcome or proposal, the White House has all the power, influence, and sway in the world. My mistake!

O8)