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Obama Takes Aims at Insurance Industry's Antitrust Exemption
In his weekly address on Saturday, President Obama aimed sharp criticism at the health insurance industry over recent actions related to health reform—and implied he may push for legislation now pending on Capitol Hill to dissolve the industry's 60-year-old antitrust exemption.
In his remarks, Obama thanked a variety of groups for support of the Senate Finance Committee's bill, the last healthcare reform measure pending approval by a congressional panel. He specifically cited the work of a "broad and growing coalition of doctors and nurses, workers and businesses, hospitals and even drug companies—folks who represent different parties and perspectives."
However, "there are still those who would try to kill reform at any cost," said the president, referring to efforts by the health insurance industry to challenge healthcare reform with a study that said insurance costs would rapidly increase under the Finance Committee plan.
Obama even offered another study—one from the Business Roundtable—as counter to the findings from the health insurance industry. Their report said that annual healthcare costs for employers will rise 166% over the next decade, from $10,743 per employee today to $28,530 by 2019.
"This is the unsustainable path we're on, and it's the path the insurers want to keep us on. In fact, the insurance industry is rolling out the big guns and breaking open their massive war chest to marshal their forces for one last fight to save the status quo," said President Obama, referring to recent studies and advertisement campaigns by the insurance industry in several states challenging changes to the Medicare Advantage program.
Obama went on to say that the insurance industry "is making this last ditch effort to stop reform" as they're "earning these profits and bonuses while enjoying a privileged exception from our antitrust laws, a matter that Congress is rightfully reviewing."
Last week, the Senate Judiciary Committee held hearings in which Senate Majority Leader Harry Reid (D-NV) testified to repeal health insurance and medical malpractice insurance companies' antitrust exemption, which is part of the McCarran Ferguson Act.
When asked about that statement on the ABC show "This Week" on Sunday, David Axelrod, a senior adviser to the president, said that is would be it is Congress's call what to do about the exemption.
"Congress is . . . reviewing that. He (President Obama) said it's appropriate that they review that . . . We'll see what Congress does," Axelrod said. "One of the problems we have is we have a healthcare system now that functions very well for the insurance industry, but not well for the customers."
Janice Simmons is a senior editor and Washington, DC, correspondent for HealthLeaders Media Online. She can be reached at jsimmons@healthleadersmedia.com.
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Journey Home by Paul Burke (1/4/2010 at 10:24 AM)
Allegations of price-fixing, bid-rigging, exclusive sales contracts, local price cutting to freeze out competitors, and the dividing up of markets need to be fully explored through subpoenas and depositions (a law suit by all 50 States and joined by the Feds) so we can get rid of our dysfunctional corporate health care system that's choking the economy to death.
Federal workers and retirees can select plans at a cost range from $100 dollars a month for the cheapest individual coverage to $500 dollars for the most expensive family plan.
I?m voting ?MY? pocket book - I want lower premiums and less money taken out of my paycheck - if they want to help spur on the economy they will make sure this happens for all - not just a select group.
90% of the wealth concentrated in 1% of the population is no way to run a country but a heck of a way to establish a royalty ruling class. Yacht sales can not sustain 350 million people. I'm for the public option, competition and a level playing field or break up the big insurers like we did AT&T.
A slavish focus on profit margin might be good for the individual or a business, but it is one helluva lousy way to "govern" a Country. The GOP being a wholly owned subsidiary of Corporate America has a hard time with that concept.
Paul Burke
Author-Journey Home
Barton Todie (10/19/2009 at 12:21 PM)
Why should the insurance industry have an anti-trust exemption? Prices from insurances companies all move up together, showing, to me, how they are colluding to keep prices up. Costs are so high for everyone and more and more people are becoming uninsured. The government only steps in when private industry has failed Americans. Private Medical insurance is a failing paradigm.
David Hahn (10/19/2009 at 11:24 AM)
The insurance anti trust exemption is one more lever this President will pull to punish anyone who stands in his way to effectivly developing a government managed economy. He is showing how he will handle those who stand in his way. Many young doctors are employed by hospitals and groups and do not have to involve themselves in the profit loss of their work. To date hospitals have lost inordinate sums in their effort to control market by owning phyician practices. When hospitals become contrained financially by this legislation, tightening will necessarily occur with these physician contracts and reduce their contracts. This will provide futher conflict between doctors and hospitals and it will be are government at work. All the while costs will not go down and the general populace will be very frustrated.