Attacking the Cartel Where It Hurts

Posted on 10/14/2009 at 1:34 pm by Bob Cesca

I’d love to learn more about how the health insurance cartel managed to be excluded from anti-trust laws. Nevertheless, Senators Schumer and Leahy are making a serious attempt to strip the cartel of their exemption status, which means — gasp! — they’ll have to compete in a broader market (which we hope will include a public insurance plan).

BULLETIN — POLITICO’s Carrie Budoff Brown: This morning, Senator Schumer is going to say, in light of the insurance industry report warning premiums will rise under reform, Dems should push to revoke the health insurance industry’s antitrust exemption as a floor amendment. This will be at a Senate Judiciary Committee hearing, where Majority Leader Reid is also testifying.” 10 a.m., Dirksen 226, “Prohibiting Price Fixing and Other Anticompetitive Conduct in the Health Insurance Industry.”

Schumer says there’s a solid chance his amendment will pass. Fingers crossed!

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  • Eric

    Here goes my paranoia again, but I’d not like to see that get passed and then have people say “there you go – you don’t need a public option now…”I don’t know if there’s any logical basis to that fear, but there hasn’t been a whole lotta logic in the mix to date.

  • eve

    I think this is huge.

  • eve

    Eric, this may be how they get everyone to go along with a public option by giving up the exemption amendment.I do want both of these.

  • eljefejeff

    It would be so sweet if the AHIP report ends up being the last straw on providing the public option and ending their antitrust exemption. They were hoping it would kill health care reform but instead it may end up screwing them more.

  • eve

    In a rare appearance as a witness at a Senate hearing, the majority leader, Harry Reid of Nevada, told the Judiciary Committee on Wednesday that it should repeal a 1945 law that granted the insurance industry limited exemption to national antitrust laws by allowing states to regulate insurers.

  • Irish Girl

    I suspect this is Congress’ attempt to wave a big stick at the insurance industry after that stupid AHIP Report. My cynical expectation is that the insurance industry will get quiet about opposing healthcare reform and the amendment will die. I would prefer, however, that Congress pull the trigger and remove their exemption no matter what the insurance industry does or does not do as it would ease implementation of a public option.

  • Allonfla

    Pfft, I have no faith or confidence in Schumer.