Maine Health Insurance WHY ARE HEALTH INSURANCE COMPANIES?

WHY ARE HEALTH INSURANCE COMPANIES? - maine health insurance

Why do the insurance, freeing cartel? Why should we consider HMOs to be the "capitalist" if they did not even compete?

Many people do not know that the insurance industry offers help under the McCarran-Ferguson Act, 1945 Act an exception to the global fight against the Trust to regional monopolies. The law allows states to regulate insurance business in place of the covenant, but also allows that if the state regulates the industry, is in federal antitrust law does not apply.

Following this exemption, the states have seen the market for health insurance in one or two companies dominate. In Maine, controls Wellpoint shares 71% of the market. In North Dakota, Blue Cross controls 90%. Use the / Herfindahl-Hirschman Index, a measure of market concentration, a 2007 study by the AMA found almost all the health insurance markets in the United States is highly concentrated.



Where is the "capitalism" in this area? Why do you think this is not a monopoly?