Declarations&Exclusions has noted my comment on McCarran-Ferguson and how the antitrust laws may effect information sharing. David Giacalone of f/k/a/ comments extensively and usefully in the comments which I can't seem to link to--just read them all.& ;He believes that the concern about allowing antitrust enforcement in the insurance industry is overblown. In fact, many of the states including California, for example allow for state antitrust enforcement against the insurance industry.
As I mentioned below, I am more concerned about states going the other way. Using the language of antitrust to justify other types of regulation which will have a negative influence on the already weak med mal markets.
Do medical malpractice insurers collude to set prices? That is the question that deserves serious thought and evidence.& ; However, most of the discussion is conclusory (see e.g. Sen Durbin's website on med mal -- scroll down and look for collusion, see e.g. Rep. Conyer's press release search for collusion). There is no evidence of collusion just assertions of it. Collusion is not likely a real problem and removing the antitrust enforcement for those states that do not have state antitrust laws are not likely to have an effect.& ; Generally,& ;the largest or the second& ;largest medical malpractice insurer in the state is owned by the state's doctors.& ; The doctors do not seem to have an interest in colluding with other companies to keep malpractice premiums above the competitive level.& ; See my comment and chart looking at 2002 data.
Medical malpractice insurance companies (see e.g. the St. Paul Companies fall from grace) can make strategic mistakes, but evidence of collusion is non-existent and other sources of the problem need to be seriously examined. Senators Kerry and Edwards health care reform plan is a form over substance (as James Copeland noted
Best wishes at your new location, Martin. I wonder when the first critic will squeeze in through this cyber transom.
Sure hope you're not confused with "risqueProf".
Posted by: david giacalone | August 27, 2004 at 11:34 AM