Charles Gonzalez 20th District: Response to RodZ on Healthcare Anti-trust Repeal

Here is the response from Representative Gonzalez concerning repeal of the anti-trust exemption for the insurance companies. It would have been nice to get a status of the bill.  The summary states:

Official Summary

9/17/2009–Introduced.Health Insurance Industry Antitrust Enforcement Act of 2009 – Declares that nothing in the McCarran-Ferguson Act shall be construed to permit health insurance issuers or issuers of medical malpractice insurance to engage in any form of price fixing, bid rigging, or market allocations in connection with providing health insurance coverage or coverage for medical malpractice claims or actions. Makes this Act nonapplicable to any information gathering and rate setting activities of any state commission of insurance or any other state regulatory entity with authority to set insurance rates.

I am not sure how this addresses the facts Representative Gonzalez states in his letter to me or if it eliminates insurance companies from the acts protections. I do know that  the act is addressed in the new house healthcare reform bill, but that is a blog for another day.

Dear Mr. Zagala:

Thank you for contacting me regarding H.R. 3596, the Health Insurance IndustryAntitrust Enforcement Act of 2009.  I appreciate hearing from you on this important matter.

As you know, federal antitrust laws were established to protect consumers.  Antitrust laws ensure that markets are competitive by governing market behaviors such as price discrimination, predatory pricing, and monopolization.  Throughout the current healthcare debate, concerns have been expressed about health insurance companies and how their exemption from antitrust laws might impact consumers.

It is clear that consumer choice and competition has been stymied by the rampant consolidation of the health care industry over the past decade (400 mergers have taken place in that time period).  The American Medical Association has found that almost 95% of all markets are “highly concentrated.”  Other reports support this by showing that two firms control at least 50% of the market in 39 states.  Worse yet, single firms control over 75% of the market in nine states.  This has not benefitted the consumer.  Insurance premiums have increased more than 87% over the past six years.  This is four times faster than average wages have increased.  Meanwhile, the annual profits of the ten largest health insurers increased by 428% from 2000-2007 (from $2.4 billion to $12.9 billion).  The consolidation of market control has not only hurt consumers; it has been found that doctors earn less in concentrated markets.

This lack of competition hurts consumers’ pocketbooks and health.  H.R. 3596 aims to correct this situation by clarifying that health insurance companies and medical malpractice insurers are not exempt from federal antitrust laws.  I am proud to cosponsor this legislation and will support its inclusion in any healthcare reform legislation that is considered in Congress.

Again, thank you for sharing your concerns with me.  Please do not hesitate to contact me in the future about any legislation concern that is a priority for you.

Sincerely,

Charles A. Gonzalez
Member of Congress

Possibly Related Posts:

• Nuke power?
• Glen Beck Shows Schedule
• Unbiased News?
• Pick Your Reason For Why You Vote Democrat
• Obama, Pelosi, Reid, Crazy Times