Why is it that the health care industry is exempt from anti trust laws?

Similar questions: health care industry exempt anti trust laws.

The McCarran-Ferguson act excludes insurance companies from federal anti-trust laws under some cond The federal government has not been able to attack the insurance companies through federal anti-trust laws for over 60 years. Under the McCarran-Ferguson Act passed in 1945, insurance companies (and Major League Baseball! ) are specifically excluded from federal anti-trust laws as long as the state regulates in that area, and federal anti-trust laws will apply ONLY in cases of boycott, coercion, and intimidation.

Under the McCarran-Ferguson Act, Big Insurance is allowed to collect and SHARE data with each other about claims. With this information, Big Insurance can fix prices, set coverage requirements, outline conditions for coverage denials (like pre-existing conditions), and many, many more. Sources: eforum.reviewjournal.com/lv/showthread.p... .

The McCarran-Ferguson Act does not itself regulate insurance, nor does it mandate that states..more. The McCarran-Ferguson Act does not itself regulate insurance, nor does it mandate that states regulate insurance. However, it does empower Congress to pass laws in the future that will have the effect of regulating the "business of insurance."

However, federal acts that do not expressly purport to regulate the "business of insurance" will not preempt state laws or regulations that regulate the "business of insurance. "The Act also provides that federal anti-trust laws will not apply to the "business of insurance" as long as the state regulates in that area, but federal anti-trust laws will apply in cases of boycott, coercion, and intimidation. South-Eastern Underwriters Association (322 U.S. 533) came before the Supreme Court in 1944 on appeal from a district court located in North Georgia.

The South-Eastern Underwriters Association controlled 90 percent of the market for fire and other insurance lines in six southern states and set rates at non-competitive levels. Furthermore, it used intimidation, boycotts and other coercive tactics to maintain its monopoly. The question before the Court was whether or not insurance was a form of "interstate commerce" which could be regulated under the Commerce Clause of the United States Constitution and the Sherman Anti-Trust Act.

The general opinion in law before this case, according to the Court, was that the business of insurance was not commerce, and the District Court concurred with the opinion.In dissent at 322 U.S. 588, Justice Jackson of the Supreme Court concluded that:"4. Any enactment by Congress either of partial or of comprehensive regulations of the insurance business would come to us with the most forceful presumption of constitutional validity. The fiction that insurance is not commerce could not be sustained against such a presumption, for resort to the facts would support the presumption in favor of the congressional action.

The faction therefore must yield to congressional action and continues only at the sufferance of Congress.5. Congress also may, without exerting its full regulatory powers over the subject, and without challenging the basis or supplanting the details of state regulation, enact prohibitions of any acts in pursuit of the insurance business which substantially affect or unduly burden or restrain interstate commerce. "In short, while not changing the opinion of prevailing law, the Court stated that the conclusion that insurance was not commerce under the law rested with Congress, and that the Court would follow the lead of Congress.As a result, on March 9, 1945, the McCarran-Ferguson Act was passed by Congress.

Among other things, it allows for: * the state regulation of insurance * allows states to establish mandatory licensing requirements * preserves certain state laws of insurance. Sources: http://en.wikipedia.org/wiki/McCarran-Ferguson_Act .

1 Well , they are just like the post office; according to the WHITE house.

Well , they are just like the post office; according to the WHITE house.

Rhine44 replied to post #1: 2 Thanks for your input. I thought only Major League Baseball and the health care industry were the only ones exempt from anti trust laws.

Thanks for your input. I thought only Major League Baseball and the health care industry were the only ones exempt from anti trust laws.

3 You're talking about McCarran-Ferguson, which exempt insurers from _federal_ anti-trust regulation by splitting them among the individual states. And it doesn't even really eliminate federal anti-trust completely; it still applies in some cases. McCarran-Ferguson is out of date (it's over 65 years old) and the country has changed significantly.

We live in a much more networked country, and splitting insurers among states has made it more complicated to move between states. And we're losing a lot of the efficiencies that they could gain by having a national health insurerer. Instead we get these weird constructions like Blue Cross, which isn't a single insurer, but an "association" of dozens spread across multiple states.

Also note: this applies only to "insurers", not "the health care industry". Hospitals, drugmakers, and other parts of the insurance industry aren't covered by it.

You're talking about McCarran-Ferguson, which exempt insurers from _federal_ anti-trust regulation by splitting them among the individual states. And it doesn't even really eliminate federal anti-trust completely; it still applies in some cases. McCarran-Ferguson is out of date (it's over 65 years old) and the country has changed significantly.

We live in a much more networked country, and splitting insurers among states has made it more complicated to move between states. And we're losing a lot of the efficiencies that they could gain by having a national health insurerer. Instead we get these weird constructions like Blue Cross, which isn't a single insurer, but an "association" of dozens spread across multiple states.

Also note: this applies only to "insurers", not "the health care industry". Hospitals, drugmakers, and other parts of the insurance industry aren't covered by it.

I think his sign pretty much says it all. " "WHY IS ACCOUNTABILITY IMPORTANT IN THE HEALTH CARE INDUSTRY? HELP" "Will the new Massachusetts health care laws cover people previously considered uninsurable?

" "And the conservatives still insist we don't need health care reform and socialized medicine? What are they smoking?" (11 answers) "Should the health care industry lose their anti trust exemption? " "It's called concierge, boutique, or retainer medicine.

Is this the future for health care for wealthy politicians?" "Why is accountability important in the health care industry? " "For a working person, why is socialized medicine better than the health care I have now? " "Congress wants to be exempt from any health care bill that would be put on our backs.Is this fair?

" "Has President Obama failed to rein in the Health Care industry?

It's called concierge, boutique, or retainer medicine. Is this the future for health care for wealthy politicians?

Congress wants to be exempt from any health care bill that would be put on our backs. Is this fair?

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.