Wednesday, February 24, 2010

A Call to Repeal the 1945 McCarron Ferguson Act

If the Congress with the encouragement by the 42nd POTUS (WJC) were able to repeal the 1932 Glass-Steagall Act with an assist going to Phil (Americans are whiners) Gramm which allowed commercial lenders to underwrite and trade financial instruments like mortgaged-backed securities, collateralized debt obligations and structured investment vehicles, why is it so difficult for the US Government to repeal the anti-trust exemptions for health insurance companies?

Why shouldn't insurance companies be forced to compete for our business? Considering that individual states are in collusion with the bank and insurance industry and never seem to hold back insurers from raising rates, its time to roll back and repeal the 1945 McCarron-Ferguson Act that exempted insurance companies from antitrust scrutiny and provided states the authority to regulate them but not regulating their rates.

Look at whom is calling the kettle black? The same elected officials that discuss creating a consumer-driven healthcare industry whereas the average person will have choice. We should have the choice to identify the best medical care based on outcomes for the cheapest price, yet, when it comes to the insurance industry our highly esteemed elected officials pander to the smell of insurance lobbyist dollars.

It's time that people start pressuring their local, state and federal legislators along with their state insurance commissioners to stop limiting the number of health insurance options for their constituents. It's us against them. Think of the absurdity that we spend our days arguing over free-markets, the legalities of what we can and cannot do in an industry that is manipulated and controlled by the powerful insurance lobbyists. Interestingly enough, the government places the onus on the providers for outcomes, yet, when the gatekeeper controls the opening and closing of the gate, the cards will always be stacked against those that provide healthcare.

Stay tuned, because tomorrow will a defining moment for both parties. If both parties cannot come to some resolve and play together in the sandbox defined as the US government, it may be time for us to identify people that will work in the best interest of the common man. TSB wants to know what our readers think?

Hi, Ho, Hi, Ho it's off to work I go! Have a great day!


  1. I can't tell if this post is tongue-in-cheek considering the example you used (Glass Steagall) allowed certain banks to overexpose themselves to such securities and was a contributing factor to the demise of a few.

    However, I agree with this idea and its frustrating how little this is discussed. Tort reform? Interstate insurance options? Are we still arguing over the kafka death committees?

  2. No tongue-in-cheek when it comes to repealing MF Act (the acronym is an underlying meaning) if docs and people want change, the anti-trust laws pertaining to them and the insurance industry must be challenged and changed