Ending Antitrust Exemption insurer can reduce the costs of health care

Ending Antitrust Exemption insurer can reduce the costs of health care -

The House voted overwhelmingly a bill last night which would repeal the McCarran-Ferguson Act. The bill removes the health insurance companies to be exempted from competition laws. He hits a major political victory in the House to show a glimmer of bipartisanship just before the summit on health care.

The legislators hope that the abandonment of the McCarran-Ferguson Act will lower premiums on insurance markets by increasing competition and giving consumers more choices.

Whether the repeal of this law will reduce health insurance costs is highly questionable.

Karen Ignagni, President and CEO of AHIP said: "The rhetoric surrounding McCarran-Ferguson repeal does not match the reality of the situation. Health insurance is one of the most regulated industries in America at both the federal level and the state. The law is extremely limited in scope and has nothing to do with competition in the industry of health insurance ... the real focus should be on treating the increasing cost of medical care, which put an unsustainable burden on families, employers, and the federal budget. "

The Congressional Budget Office has determined that the repeal of the antitrust exemption law would not make a significant impact on the federal budget or the health insurance premiums last year.

time will tell whether the repeal of the law will help reduce health insurance costs for consumers and increase competition. However, with the amount the health insurance companies are already regulated, it can not be a significant change.

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