Should Health Insurance Co's. Lose Anti Trust Protection?

As a result of recent push back from the health insurance industry, the Administration and members of Congress are considering repeal of the McCarran-Ferguson Act of 1945. This law was a result of the US Supreme Court ruling in 1944 that the Federal government could in fact regulate the insurance industry. (All forms of insurance.) Congress decided that they weren't going to do it and let the States be the regulators of the industry.

Critics contend that this has led to price fixing among insurers and providers, thereby driving up costs to consumers. According to Ryan Grim from Democracy Now:

The Department of Justice estimates that I think in 94 percent of the country, there is a—what they call a highly concentrated market, which means that it’s in danger of becoming a monopoly or it has already tipped over into a monopoly, and that allows insurers to collude legally with hospitals and with doctors and other providers to set prices. They set high prices that they pay to the hospitals, then they can raise premiums. And without any competition, there’s nothing that anybody can do about it, and it’s perfectly legal.

In light of the health insurance industries contention that a public option will create an uneven playing field, it would seem contradictory to allow the exemption to remain in force. The anti-trust exemption allows monopoly or near monopoly insulation from real competition in the health insurance market.

Recent polling data indicates that approximately 57% of respondents are in favor of a public option. (Washington Post/ABC News). Other polls show the number closer to 50%. To be fair, there is a bit of confusion regarding just what a public option will entail. One thing is certain: health insurers are vehemently against it, which would lead one to think it might be a favorable outcome for the uninsured.

As always the devil is in the details, and we'll just have to wait until the sausage making is finished. 

Note; I can't un-bold the text. Everything below the italics bold are my comments.