Activists seek Justice Dept. probe of insurers

It’s a few days old but I missed it earlier



http://www.usatoday.com/news/washington/2009-05-20-insurers-justice-department_N.htm?obref=obinsite

Activists seek Justice Dept. probe of insurers


………….The letter, dated Tuesday, asks the Justice Department to crack down on industry practices that allegedly infringe on the doctor-patient relationship, and to re-examine whether dozens of insurance company mergers in recent years have undermined competition…………………..

…………The activists are citing a report earlier this year by the American Medical Association, which found that insurance markets in most major metropolitan areas were dominated by two companies, and in many cases only one.


In all, 94% of the metropolitan areas met the government's definition of "highly concentrated" markets for health insurance, according to the AMA report. Pisano said that analysis was designed to arrive at a "preordained" conclusion.
Industry critics also are citing a recent report by the congressional Government Accountability Office………………


That survey found that in most states, a single insurer dominates the market for small business health insurance, even though many companies offer coverage.
The GAO found that the median, or midpoint, statewide market share of the largest insurer was about 47%, although the median number of licensed carriers was 27.
Antitrust lawyer David Balto, who co-signed the letter to the Justice Department, said it would be a mistake for the Obama administration to allow private insurers to assume a leading role in revamping the health care system.

"For a market to work effectively, you need two things: choice and transparency. Neither of those are present in the insurance market," said Balto, who served in a senior position at the Federal Trade Commission during the Clinton administration. "Relying on the current insurance market as the foundation for health care reform is like trying to cross the Atlantic in a raft."………….