Tag: McCarran-Ferguson

Politico digs into the unintended consequences of repealing McCarran-Ferguson

Politico reports that some policymakers are beginning to understand some of the unintended consequences that repealing McCarran-Ferguson will have. A few excerpts are below: · “But Democrats look like they’ll scale back the legislation to protect insurance companies that offer malpractice coverage to doctors and other health care providers.” · “‘Certainly, [the bill’s provision] should be narrowed,’ said Ben McKay, a senior vice president of federal government relations for the Property Casualty Insurers Association of America. ‘It’s overly broad. There [...]

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What They Are Saying About McCarran-Ferguson

Los Angeles Times: • “Lawmakers are expected to pass a bill this week that would repeal the federal antitrust exemption that insurance companies have enjoyed since 1945 — a move that makes for little more than a good sound bite.” (Los Angeles Times, Back to the drawing board, 02/08/2010) • “Removing the exemption won’t do much to boost competition or spark a price war among insurers, however. (The Congressional Budget Office said that a similar proposal in the House’s comprehensive [...]

Posted in: What They Are Saying

What You Need to Know: McCarran-Ferguson Act

National Association of Insurance Commissioners letter (10/21/2009): “The potential for bid rigging, price fixing and market allocation is of great concern to state insurance regulators and we share your view that such practices are harmful to consumers and cannot be tolerated. However, we want to assure you that these activities are not permitted under the McCarran-Ferguson Act and are not tolerated under state law. Indeed, state insurance regulators actively enforce prohibitions in these areas.” To read the full letter, click [...]

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Key Facts About McCarran-Ferguson

Information on Repeal of McCarran-Ferguson Click here for a letter that was sent to Representative Conyers this morning. The letter states that “the bills attempt to remedy a problem that does not exist.” Click here for a letter that was sent to Senator Leahy and Representative Conyers on October 8, which says that “the two bills under consideration may be based on a misperception of the scope and impact of the McCarran-Ferguson Act.” Here is a link to a CRS [...]

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CBO’s Analysis of McCarran-Ferguson Repeal Shows No Effect

“The analysis also takes into account the provisions of section 262 of Division A regarding the application of federal antitrust laws to health insurers. CBO estimates that implementing those provisions would have no significant effects on either the federal budget or the premiums that private insurers charged for health insurance. For an analysis of a similar proposal, see CBO’s cost estimate for H.R. 3596, the Health Insurance Industry Antitrust Enforcement Act of 2009 (October 23, 2009).” For the full analysis, [...]

Posted in: Fact Check

The Truth About McCarran-Ferguson

Recently, the McCarran-Ferguson Act has become the focus of the reform debate. However, there are some misconceptions about the effect repealing the McCarran-Ferguson Act would have on costs and competition. Below are some key facts about this: The Congressional Budget Office issued a report earlier this week which stated “would have no significant effect on the premiums that private insurers would charge for health insurance.” For the full report click here. Politico reports “CBO: Repealing insurance anti-trust exemption won’t affect [...]

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Bloomberg Reports That Congress is “‘Shooting blanks’ With Antitrust Threats to Insurers”

A Bloomberg article reports on the ineffectiveness of repealing McCarran-Ferguson. Read some key excerpts below: “Either the people who are proposing this are really naïve about how insurance is regulated, or they are just playing political games with the voters.” “Repealing the exemption is “not the silver bullet that I think some proponents are claiming,” said Greaney, who headed the Justice Department’s health-care antitrust unit in the 1980s. “It certainly is not going to make a big difference in terms [...]

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Scott Harrington on Why McCarran-Ferguson Repeal is Meaningless with Respect to Costs and Competition

Scott Harrington, a professor from the Wharton School at UPenn, opines on competition and health insurance in the Wall Street Journal: “…there is no evidence that [health plans’] antitrust exemption has contributed to higher health insurance costs, premiums or profits…” “Repealing the antitrust exemption for health insurers would not significantly increase competition, and it would not make health-insurance coverage either less expensive or more available. There is no evidence that the exemption has increased health insurers’ prices or profits or [...]

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McCarran-Ferguson and Competition

Business Week’s Esme E. Deprez questions whether repeal of McCarran-Ferguson could hurt competition. Here are a few key excerpts: “…some independent analysts question whether repealing McCarran-Ferguson alone would be enough to change pricing…David Hyman, a professor of law and medicine at the University of Illinois College of Law and adjunct scholar at the Cato Institute. Hyman considers it unlikely that repeal would fundamentally change the nature of the market. While it might increase competition in some markets, he says, it [...]

Posted in: In Case You Missed It, Issue Alert

AP Reports on What Experts Have to Say About Repealing McCarran-Ferguson

AP business writer, Matthew Perrone, reports on what healthcare industry analysts and legal scholars say will be the outcome of repealing Mccarran-Ferguson. Take a look at some key excerpts: “…lawmakers are seeking to stir up competition by stripping health insurers of their protection from certain federal antitrust laws, although experts shrug off the effort as largely symbolic.“ “Some observers suggest the move by Democrats is mainly a reprisal against the insurance industry group, America’s Health Insurance Plans, which last week [...]

Posted in: In Case You Missed It