Under the McCarran-Ferguson Act, passed by Congress in 1945, the Insurance Industry became one of the few industries to be exempt from federal antitrust laws. Other industries that have similar exemptions include railroads, major league baseball, agricultural and fishing cooperatives, and maritime shipping.
To ensure that health insurance issuers and medical malpractice insurance issuers cannot engage in price fixing, bid rigging, or market allocations to the detriment of competition and consumers, the House Judiciary Committee has voted on HR 3596, the Health Insurance Industry Antitrust Enforcement Act of 2009. The House Judiciary Committee’s vote (20-9) to send H.R. 3596 to the floor provides a significant spur to competition in health insurance.
But while House Judiciary Committee Ranking Member Lamar Smith states that he supports health care reform that brings greater competition through purchasing insurance across state lines, he is one of the 9 opposed to repealing this federal antitrust exemption. His contradictory reasoning is that the states should retain their status as the regulators of the insurance industry without "inviting federal intervention."
Could the real reason for his inconsistency be that the insurance industry is among the top 5 industries to contribute to his political campaign, according to opensecrets.org?
Lamar Smith has not only voted to help his contributors, but he is leading the fight against health care reform. He has continued to cite studies from Harvard School of Public Health to support his claim that Tort Reform is the best answer to health care reform. But he ignores the fact that the Harvard study that he cites, concludes the exact opposite.
"Some critics have suggested that the malpractice system is inundated with groundless lawsuits, and that whether a plaintiff recovers money is like a random ‘lottery,’ virtually unrelated to whether the claim has merit," said lead author David Studdert, associate professor of law and public health at Harvard School of Public Health. "These findings cast doubt on that view by showing that most malpractice claims involve medical error and serious injury, and that claims with merit are far more likely to be paid than claims without merit."
A separate study by the Robert Wood Johnson Foundation’s Synthesis Project reviewing the effects of the impacts of state tort reforms concluded that the deteriorating liability environment has had only a modest effect on the supply of physician services. Aside from caps on noneconomic damages, most tort reforms adopted by states in response to malpractice crises have not been effective in boosting physician supply or reducing insurance or litigation costs. Michelle Mello, an associate professor of health policy and law at Harvard School of Public Health further explained that damages caps "help constrain growth in litigation costs and insurance premiums over time, but disproportionately burden the most severely injured patients."
Lamar Smith is using flawed logic to support positions that benefit his big insurance contributors, and is putting politics before people.
If you're concerned that your voice isn't being heard, if you’re tired of the failed policies of Lamar Smith, and if you have a vision for a better tomorrow, then join me, Lainey Melnick, in taking action to win in 2010. Please go to laineyforcongress.com, make a contribution, join our team of volunteers and spread the word that we have a winnable race in the 21st.
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Lainey Melnick
Candidate for US Congress
Texas 21st District
http://www.LaineyForCongress.com
lmelnick@laineyforcongress.com
512-799-0626 cell
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