What? Congress allows health insurers an Antitrust law exemption?

I remember a number of years ago when Congress went after cereal manufacturers with an axe for price fixing. They ripped that industry a whole new butt over their criminal behavior and violation of  Antitrust laws that absolutely forbid market domination or price fixing among ‘competitors’.

For years I have suspected that the health insurance companies in New York appeared to be price fixing. You just can’t get a competitive deal when you are shopping for health insurance. They are all coincidentally in the same ludicrous price range for single payers. And when I say “ludicrous,” I mean ludicrous.

In New York, you can’t get a crappy HMO for one person for less than around $900 bucks a month (not including copays and deductibles).  For a family, it’s closer to $2000  a month.  Blue Cross/Blue Shield is completely out of reach to the single payer. If you think I’m lying check this out. That’s one region. If you check out the other areas of New York, you will find the same bad or even worse news. Who the hell can afford that kind of money? The state offers lower cost coverage but the limits of income make it so the average middle class family can’t use the option. So, if they aren’t insured through an employer,  they are forced to either dish out close to $24,000 a year (not including copays and deductibles) to insure their families with an HMO that wants to kill them all — or go without insurance.

I noticed that only recently Excellus has begun to offer a lower cost policy, but again the maximum income amount to qualify is very low. And the benefits are dangerously inadequate:  For example, it limits the owner to $100,000 maximum life benefit.  One sickness and you have gone over the line. One heart attack and you’ve spent 100k before you are even on your feet again. This is exactly the kind of insurance that brings people who are insured into bankruptcy once a catastrophic illness visits the family. And of course, if you have a pre-existing condition you are screwed;  chest x-rays, cholesterol tests, pretty much all blood diagnostic tests aren’t covered, nor is a checkup.  X-rays for bones or injuries carry a hefty co-pay. Things like bone  density tests are not covered unless you have osteoporosis, although you have to wonder how you know you have it if you can’t get tested. You get the picture. The snowballs in summertime that come with this policy melt right in your hand.

I also noticed two other suspicious things about New York health insurance “options”.  First, there are always just a few choices for single pay consumers. I wondered what blocked others from competing.  Secondly, if you are a resident of New York State and you join a national organization that offers health insurance to its members, when you take a look at their insurance rates and benefits, you are specifically told that the benefit is “Not Available To New York Residents“. There is no doubt in my mind: Something very sinister is amiss among health insurers in New York. And New  York is not the only state in which consumers are shackled in this way. They are just, as usual, a glaring example.

This obviously smarmy health insurance situation in my state is why I have been hoping congress would allow us to cross state lines to purchase health insurance. I know for a fact that I can get at least two of the available single payer policies in my area for significantly less money simply by jumping state lines.  I would also have more choices.

As I watched this all unfold for single payers, I thought that the health insurers simply had our traditionally corrupt, thieving state legislative branch by the cajones. This was a great way to gouge people and so what if the insurance industry shared the winnings via contributions to politicians?

I was wrong. This situation is not caused by New York State legislators alone. The robbery goes much deeper than that. All the way up to the Federal level and all the way back to the 1940s.

I just heard that Chuck Schumer is going after the insurers and submitting an amendment to “reverse” their exemption from Antitrust laws.

I practically jumped out of my seat when I heard this! Everything awful I have seen happening to insurance in my state all fell into place for me.

With the prices of health insurance out of reach for so many, health insurance companies have been blessed for decades with an exemption from Antitrust laws, effectively blessing their price fixing and blocking of other insurers in “their” areas?  What?????????

Can you believe this?

It took Schumer’s retaliation for this to be revealed?  Some say he’s angry because of the insurers’ TV ads telling everyone that their premiums are going to go up if a bill is passed. He’s angry so he’s lashing out at them. Whether this is true or not, the fact is, if this Antitrust exemption is true, then Congress has been helping Health Insurers screw America by allowing an exemption from a law that protects American consumers from gougers and competition. And when it comes to health insurance companies, Gouges R Us.

So basically, Schumer is inadvertently revealing  how Congress has been screwing us royally for God Knows How Long by sleeping so deeply with the health insurance industry, that they actually gave these monsters a free ticket to violate antitrust laws, block competition and overcharge us so they could pad that $80 billion in profits. A free pass that should have been revoked years ago.

I’m told that this Antitrust exemption dates back to the 1940s, so we can’t blame any recent Congress. However, I am sure the reason the original law was enacted was perhaps for startup purposes through the 1960s, to encourage insurers to start up their companies.  Whatever the reasoning, this was also the time well before abject greed kicked in with respect to health care. Those of you who remember the 70s also remember how totally inexpensive health insurance really was. Nobody thought much about it either. They didn’t have to call some miserable SOB at the insurance company to get approval for a procedure. Nobody threw them out of the hospital before they were ready to leave. There was no such thing as a “pre-existing” condition. If you needed a doctor, you went to see your doctor. Then the insurance company paid the majority of the bill and you were left with a small amount to pay.

That was then. This is now. And I am absolutely astounded that congress over the last 15 years knew this Antitrust exemption still existed while people suffered, but they did NOTHING about it. That means Democrats and Republicans together ignored our needs — when reversing this 1940s exemption that was no longer needed and was harmful to Americans could have solved a large part of the problem. Competition would have opened up. Price fixing would have been history, and we wouldn’t be in the position we are today. Yet, they did nothing. Nothing. Nada. Zilch. Zero.

Thank God the insurance industry ticked off Schumer, because the truth is, if this  exemption continues as-is without a public option to scare the bejesus out of the insurers, we are  surely still screwed.

When the cereal companies were price fixing, the worst that happened was we all paid a buck more a box for cold cereal and it all cost us roughly the same whether it was Cheerios or Wheaties.  That was bad. But thousands of dollars more for health insurance apparently didn’t bother our Congress at all. Well, let’s face it, that’s because the HMOs and other thieving insurers give these bought and paid for elected officials more money than cereal companies could ever come up with.

It all kind of makes you wonder how many people who are uninsured might have been able to afford it if Congress weren’t so “helpful”.