Originally Posted by fmichael

Jim -

You wouldn't be any chance be referring to the fact that the Senate bill set up a system of "National Exchanges" without taking into account that insurance companies, registered in State X, could then use a series of Supreme Court cases on banking law to avoid almost any local insurance regulations when administering policies sold in State Y? As in, there is a reason all credit card companies are based in Delaware or South Dakota, just as so many of the publically traded companies are incorporated in Delaware: build the fewest regulations as possible, and they shall come. Something so obvious it occurred to me, but apparently not the 60 fully-staffed senators who voted for it. (My wife, also a lawyer, told me I was crazy at the time, but it had more to do with not having heard it from someone on high than anything else.)

Anyhow, the House picked it up right away and put it in the reconcilliation bill, only to have it be one of two provisions knocked out by the Senate Parlimentarian, as lacking any federal fiscal relevance. Now the Democratic leadership has said it will attach it to a "must pass" appropriation bill or the like. We shall see . . .

Mike

Originally Posted by Jimking

Absolutely Mike. My take on health Insuance industry is this, they are what they are, a for profit business nothing more and nothing less. Having 50 regulatory agencies in the US is the mechanism that allows these companies to increase their profits. Without it their profits would decrease. This is the reason why health insurance companies are exempt from anti-trust laws--- because of the existance of 50 regulatory agencies. If say, for example, there was only one regulatory agency, the fed, health insurance companies would no longer enjoy the anti-trust exemption and no longer able to game the system like they do now. Also state to state competetion would increase because they no longer would have a safe haven.

Don't get me wrong, I'm all for profit etc. but some estimates have placed 1/3 of total healthcare cost on insurance profits. This is not exceptable and will end in time because it will have to one way or the other.