The Reasoned Review

Just another WordPress.com weblog

Posts Tagged ‘health insurance

Health Insurance Anti-trust Exemption

leave a comment »

Matt Taibbi has one of the most lucid posts on the recent health-care scandal I’ve seen recently.

You may remember the California Anthem Blue uproar that occurred a week or so ago, wherein they arbitrarily and unilaterally jacked up their prices almost 40%. Taibbi asks the logical question – “Why can’t California customers just switch to another, cheaper provider?” – and then answers it: “Because they have no choice.”

You see, as it turns out, health insurance providers are exempt from anti-trust legislation, which means they can hold veritable monopolies over huge areas and no one can do a thing about it. This was certainly news to me.

Dating back to 1947, what was supposed to be a “temporary” exemption quickly became a permanent loophole in the Sherman Anti-Trust legislation.

As Taibbi says:

This is why insurers (especially insurers with large market shares in small states) are easily able to gouge customers and deny coverage. There’s really no legal mechanism for preventing the firms from getting together and arranging price-fixing and other outrages. In a normal market customers would be able to get better coverage and cheaper rates from a competitor, but insurance is really more like a series of competition-free fiefdoms where the customers can’t go elsewhere for a better deal.

The exemption is known as the McCarran-Ferguson amendment, and so long as it’s still on the books health-care providers will continue to have a monopoly over large swaths of land. This is yet another reason why the “individual mandate” in Obama’s health-care plan is so goddamn offensive. “Reform” is impossible without repealing McCarran-Ferguson. How many of you think that’s likely?

Advertisements

Health Insurance Industry to Consumers: Screw You!

with 3 comments

(c/o Kevin Drum)

Mr. Drum makes a nice find in today’s LA Times. The health insurance industry knows, of course, that if and when health care reform passes, they’ll see a massive new influx of customers, as America’s 45 million uninsured become required, by the stroke of a pen, to purchase a health plan from them. So what do they do with that knowledge?

They jack up their prices.

Some excellent reporting from the LA Times:

Health insurers across the country are dramatically increasing rates and slashing benefits for many of the estimated 17 million consumers with individual insurance policies, while making it almost impossible to obtain affordable alternatives.

The problems have captured national attention as President Obama steps up his campaign in Washington for a healthcare overhaul and Congress investigates rate hikes of as much as 39% by Anthem Blue Cross in California.


The money quote:

“A lot of what you see today is a product of the way the market works,” said Robert Zirkelbach, a spokesman for America’s Health Insurance Plans, the industry’s Washington-based lobbying arm. “The market is broken. Those people who do need the coverage wind up covering the cost of everyone else.”

When the spokesman for Big Insurance tells you the market is broken, I think you had better listen to him. Maybe all those “tea party” protesters fighting against “Obamacare” and “Obamnuism” ought to take note.

Written by pavanvan

February 21, 2010 at 10:17 am

Let Them Eat Cake

leave a comment »

Jeff Strabone waxes philosophic in 3 Quarks Daily:

It seems to me that over the past decade, in the United States, the state and a narrow circle of powerful interests—banks, energy companies, and private health insurers in particular—have simply given up trying to persuade the rest of us that their interests were our interests. Could we be moving in the twenty-first century to a state that practices domination without hegemony? Or, to put it in plain English, will the state shamelessly turn itself completely over to serving the interests of a powerful few without bothering to pretend that it’s not? And if it does, how should we respond?

Torture, of course, is nothing new. The United States has been implicated in torture before, most famously in Central America in the 1980s. See, for instance, the article on torture in Honduras by James LeMoyne in the New York Times Magazine for June 5, 1988. But until recently, torture was always part of covert operations. The people who ordered the operations felt they had something to hide. What torture and corporate kleptocracy have in common in the twenty-first century is the lack of shame that characterizes the responsible parties.

Written by pavanvan

January 25, 2010 at 6:54 pm