A Last-Minute Push to End Insurers’ Anti-Trust Exemption

[Mass]

Kudos for them for trying. Sadly, it will probably fail thanks to Nelson (which probably explains why Lieberman signed this letter).

http://washingtonindependent.com/73979/a-last-minute-push-to-end-insurers-anti-trust-exemption

A group of powerful Senate Democrats is urging leadership today to repeal the federal anti-trust exemption that insurance companies have enjoyed for more than six decades. In a letter to President Obama, Senate Majority Leader Harry Reid (D-Nev.) and House Speaker Nancy Pelosi (D-Calif.), the Democrats argue that state regulators simply “lack the time and resources to effectively investigate antitrust conspiracies.”

Thus, the competitive activities of health insurers and medical malpractices insurers remain effectively unchecked. While there are divergent views on the best way to introduce choice and competition into health insurance market, we can surely agree that health and medical malpractice insurers should not be allowed to collude to set prices and allocate markets.

They should have addressed their concerns to Sen. Ben Nelson (D-Neb.). Why? Well, the House health-reform bill already includes a repeal of the anti-trust exemption, and the Senate bill would have, except that Reid was forced to scrap it to satisfy Nelson, a former insurance industry executive.

Thursday’s letter was signed by Democratic Sens. Pat Leahy (Vt.), John Kerry (Mass.), Jay Rockefeller (W.Va.), Joe Lieberman (Conn.), Dianne Feinstein (Calif.), Russ Feingold (Wis.), Ron Wyden (Ore.), Mary Landrieu (La.), Charles Schumer (N.Y.), Maria Cantwell (Wash.), Frank Lautenberg (N.J.), Bernie Sanders (Vt.), Claire McCaskill (Mo.), Sheldon Whitehouse (R.I.), Roland Burris (Ill.), Ed Kaufman (Del.), Kirsten Gillibrand (N.Y.), Michael Bennet (Col.) and Al Franken (Minn.).

There are some powerful folks on that list, which represents nearly a third of the Democratic caucus. Cruelly, however, it just takes a single “no” vote from Nelson to sink the entire bill. That means that if Nelson insists that the provision is out, then the provision will be out.

[WCGreen]

1. the states have created huge symbiotic relationships with the

Insurance companies. I remember back in the late 1970's when I worked at the Ohio House and the second most coveted chairmanship was the insurance committee. Members were awash with money from the very companies they were charged with overseeing.

I remember the first us vs. them fight I witnessed as a young idealistic man took place when a brash Columbus representative took on the insurance lobby by having serious committee meetings about the practice of relining. This is when insurance companies literally draw a red-line around a neighborhood and prohibit any policies, auto, home or health, to be written in those areas. It was an eye opener and probably cemented my lifetime liberalism. Most of my friends from High School were already drifting toward the right by this time, mesmerized by Reagan's precursor message to Wall Streets greed is good motto.

It wasn't a happy time in my life. Come to think of it, the country has been going down hill in oh so many ways with ever increasing speed since then.

[CaliforniaPeggy]

2. It seems as though it is always too easy for the good rules

to be undermined.

While the evil ones just skate on through.

We have allowed the rules to be rigged against us.

[alstephenson]

3. Why do the insurance companies say they need the anti-trust exemption?

Probably a stupid question, but I can't think of any good reasons...