The medical insurance game is rigged. Medical insurance companies have special legal protections that promote anti-competitive behavior. Since 1944 they have been exempt from virtually all the anti-trust laws that apply to other industries and underpin the foundation of our national economy.
Under the terms of the insurance exemption, health insurance companies can collude with one another, fix prices, rig bids and form cartels. Predatory pricing by health insurance companies is OK. These practices — normally illegal under federal anti-trust regulation— are protected by law.
Even worse, health insurance companies don’t have to worry about being sued if they hurt someone — they aren’t subject to tort liability and as a practical matter can’t be sued for messing up a claim or denying coverage. [read full story]