Your home can be your most important investment. You have spent a great deal of money to obtain that home and fill it with cherished belongings. But what if something unpredicted happens? Something undesirable like fire, theft, or even natural disasters such as earthquakes may damage your house or cause the loss of all you have worked hard for perhaps. Will you be capable to replace all of them in a snap?

There are lots of house insurance companies out there that provide home insurance. You could find them on the Internet, newspapers, or even know about them through your family and friends. These providers offer various types of policies but always keep in mind that you have to select the appropriate insurance company. Select a great insurance company that will provide you good coverage at the appropriate price and will help you spend less money by giving you reduced premiums.

But exactly how do you know you are choosing the perfect house insurance company? It is necessary that you also do your own analysis previous to going to different house insurance companies. Check out for the company’s reputation. You can look up a number of evaluations about them or even merely through word of mouth. You can also check the company’s financial position. You could consult insurance brokerage companies or even agents as they are really helpful. In that way, at least, you will be equipped to know a bit something about that company.

Compare. This is still one useful tool you can easily to do to help you find the right insurance company. One method of comparing policies is comparing your premiums. Almost all insurance companies give premiums that are similar. If you still can’t decide which to choose, you can still compare various other advantages or options like the protection sums and discounts. These are essential aspects that could help you meet your demands.

Do not put your family in jeopardy. No one really knows what’s going to come about in the long run. Preserving your home and your property guarded from risk is an important thing that you should look at. Security must be your top priority. Of course you would want to sleep well at night and have peace of mind. To make this possible you will have to protect your house and its contents with a home insurance policy simply from the best insurance company.

About the Author

Madison enjoys researching the best types of insurance available on the market. She runs an informational website which provides details on house insurance companies, high risk life insurance and much more info dealing with all your insurance needs. Find more at www.houseinsuranceguide.com

I worked in the insurance industry for 16 years and saw first hand how profitable an insurance company can be. I will not attempt to go into the nitty gritty details but I will give you a pretty good idea in the form of an overview, how profitable a venture an insurance company can be.

Insurance is a form of risk management. It is purchased to avoid the possibility of a large , potential future loss. To compensate the insurance company for taking on this potential future payout, the insured pays the insurance company a certain sum of money known as the premium. In return for the payment of the premium the insured receives a written document, known as the insurance policy, that lays out what events are being insured and what the payment to the policyholder would be if that event actually occurred.

The insurance company collects the premiums of a large group of insureds to cover the few losses they would have to pay out for.They use historical data to figure the probability of losses and then charge premiums to cover them while building in a profit for themselves.

For example,let’s say there were 100 houses each worth 0,000 in a particular area. They would have a total value of ,000,000. According to the history of that neighborhood, two houses are expected to burn down during any one year. Without insurance all 100 homeowners would have to keep 0,000 in the bank to cover the possibility of the house burning and needing to rebuild it. With insurance, each homeowner would only need to pay ,000 into an insurance pool to pay for rebuilding the two houses that are expected to burn down.

2 houses burn x 0,000 = 0,000 for rebuilding the houses 0,000 divided by the 100 homeowners = ,000 premium

That ,000 premium will then have to be increased somewhat to add a profit margin for the insurance company.

In addition to the built in profit that the insurance company adds in to each premium it takes in, the company would also be subject to the actual experience of the insured group. If it takes in more money in premiums than it paid out in claims then it receives what is known as an underwriting profit. And, on the other hand if it pays out more than it has taken in then it has an underwriting loss.

One way of looking at how well an insurance company is doing is to look at their loss ratio. The loss ratio is calculated by taking the losses they had to pay out and add to that the expenses they incurred to actuallt pay out theclaims and divide that sum by the premiums taken in. A ratio of less than 100% shows a profit and a ratio greater than 100% indicates a loss.

In many cases if an insurance company’s ratio is greater than 100% they can still be profitable. That is because there is usually a period of time between taking in premiums and paying out claims. During that period of time the company can invest the money taken in and they can earn a profit from that investment to offset any underwriting loss and could actually end up with a net profit. For example, if the insurance company pays out 15% more in claims and expenses than premiums it took in, but made a 25% profit from its investments, then it would have received a 10% profit.

So, as can be seen there is more than one way to skin the profitability cat for an insurance company to make money. Two key factors in that regard are how well they can predict their payouts and how well they can invest the money they take in.

About the Author

To read about aquarium crabs and marine crabs, visit the Catching Crabs site.

Another good thing about these companies is that they provide insurance to house against natural or constructed calamities. They also offer coverage against damage caused to house due to fire, hail, flood, riots and building collapse. For those who wish to acquire coverage from these companies can approach the local insurance agents in their area. Another best option for those wishing to buy insurance here is to go online and check on home insurance quotes offer by these companies. Study the premiums, length of coverage, and sum of coverage provided by different companies and then, buy home insurance as per the requirement.

The policies offered by the biggest companies are described below: 1) Chubb home Insurance provides most insurance that is particularly beneficial to average type of homes. As concerns those who are going in for houses with distinctive features such as condominiums, vacation homes, and plot houses then, they can go for full coverage insurance policy, which covers the insurance of interiors of that house. To go ahead Chub home policies offer policyholders that has much greater level of protection to restore their homes in case of misfortune. To obtain more information about the policies, people can visit the company’s branch office or call up a local agent.

Click on homeowners insurance to read more on homeowners insurance

MetLife: In the US this is one of the best home insurance companies. It is consider as one of the best because the homeowner policy that they offer does not contain any hidden cost. They have a smart plan that provides protection to policyholder’s house from every possible risk such as smoke, theft, lightening or fire. When it comes to court cases superior plans even defends it. This happens only when a person sues the individual’s home. For those who are in position of properties that includes houses, car, or boat, can opt for grand protection plan. On the other hand those who own condominium can select condominium plans.

AIG: This home insurance policy takes care of the policyholder’s house from all types of damages or accidents. The main policies offered by AIG include Homeowners insurance, Mortgage insurance, Liability Insurance, Indemnity Insurance and Flood Insurance. Most common type of home insurance offered by AIG is homeowners insurance, wherein it provides coverage even if a house becomes unfit for living.There is not one best homeowners insurance company for every home owner. For one thing, insurance plans are regulated at the state level, and premiums are set at local levels. Your rates could be very different than your brother’s rates if he lives one zip code over. Other factors matter too. See, Major medical insurance coverage

Best answer:

Answer by Lovely
Mobile medical Examiner. They are paid by the number of client they see to and for each procedure. Some company will reimbursed on the mileage, others do not. The job usually require you to be licensed or certified so EMTs, paramedics,LVNs, RNs can apply. Pay is minimal though.

Know better? Leave your own answer in the comments!

As the health insurance reform debate enters into its final stages in Congress, the President denounces the desperate and deceptive last-ditch efforts of the health insurance companies to derail it. October 17, 2009. (Public Domain)

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Internet Companies To Be The Norm, Not The Exception.: An article from: National Underwriter Property & Casualty-Risk & Benefits Management

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Few companies offer health benefits in Alaska: medical plan carriers have come and gone; only a handful remain.: An article from: Alaska Business Monthly

Rental Housing: Direct Investment by Insurance Companies and Savings Banks, A List of Selected Refernces

Can we get the bill down to what an insurance company would pay for the same services? How do I find out what are “customary and reasonable fees”?

Financial stability of your insurance company

How does it feel when you have been paying your house insurance premium regularly and the insurance company fails to pay your claims when your house gets damaged? Whether you want a life insurance or a general insurance, don’t forget to enquire about the financial stability of your insurance company before you buy your insurance from them. This is to make sure that your insurance company actually has enough liquidity to pay your claims when the time comes.

Reputation

Although price forms a significant basis to compare various life and general insurance companies, reputation of an insurance company forms a more important basis of comparison. Make sure that the existing clients of your insurance company are happy with their customer service. Check the past records of the insurance company to make sure that it also has a good reputation as far as the settlement of claims is concerned.  Make sure that your insurance company is not among those that cause unnecessary delays in payment of claims.

Research work

Price quotes of various life and general insurance companies can be compared in order to find the most economical insurance plan. You should also pay attention to the distinct features of various insurance plans in order to select the one that best suits your requirements. This makes it very important to first assess your own insurance needs and then start with the research work to find the most suitable insurance company for yourself.

The National Health Insurance Exchange would give Americans a choice between a private plan and a government sponsored plan. The premise is that by combining government sources and open market options, the insured will have more resources with which to tailor a custom plan.  The New York Times reports Tom Daschle, the incoming HHS Secretary, as stating that the government’s plan is designed around the Medicare model.

The Plan would encourage competition between itself and participating private companies.  Proponents say the competition that it encourages is likely to drive down market rates.  The insurance industry, however, says this is not necessarily true.  They argue that the opposite is true, that the government plan would likely underpay doctors for services rendered, causing private providers to raise their prices to cover their losses experienced from government plans.

Karen Ignagni, president of America’s Health Insurance Plans, recently stated “A new public program similar to Medicare would exacerbate cost-shifting, which already adds $1,500, or 10%, to the average premium for a family of four.”  President-elect Obama, in spite of differences, seems to be keeping his word regarding giving all parties an equal seat at the negotiating table.  This in itself is commendable.

Stephanie Cutter, spokesperson for Obama’s White House transition, recently said, “These are listening sessions.  We are trying to find people who share Obama’s goal of health care reform, even if they disagree on the specifics.”  Thousands of meetings have already been scheduled with health care reform as the subject.  All parties are being welcomed.

If you find yourself asking questions about your present <a rel=”nofollow” onclick=”javascript:pageTracker._trackPageview(‘/outgoing/article_exit_link’);” href=”http://www.gohealthinsurance.com”>health insurance</a> predicament, not knowing where to turn for answers, then visit the web’s best known and most extensive source of advice at www.GoHealthInsurance.com to learn about available <a rel=”nofollow” onclick=”javascript:pageTracker._trackPageview(‘/outgoing/article_exit_link’);” href=”http://www.gohealthinsurance.com/plan-finder.html”>health insurance plans</a>.

Very few people would commit to be honesty in their jobs. Keep the hands on your heart and say that you never did any fraud. If you are in IT you know how many frauds you do to avoid income tax. In a month if you have to give the bills for complete amount you would go to a drug shop give some commission to them and get the bills. What do you call this as? Next is the amount you show as the rental charge for your house to claim the HRA component.

Many are on the list that you do. What about the list of things that you are the victim of fraud when you are outside to signoff some policies like car insurance? Not only car insurance. The showroom dealers would say they give it at discounted price but if you do not check in net the exact price then you will be impressed by the figure they say as they have discounted it for you. Hence what you would be your job to safeguard your money from such frauds.

They are many services online who can help you with lot of queries about car insurance. If not you would at least find information in vast about the car insurance criteria that one should have to attain low insurance quotes. Just know the criteria that you should fulfill to understand the amount you might have to pay as being qualified for the criteria or not qualified for the criteria.

The best thing that you can do is review the insurance provider’s website where each site would contain a review page. This is the page where you can find the user contact details of those who have gained benefits and those who have suffered with the insurance provider. Meet personally and then decide what decision you should take.

You can ask these individuals’ questions about the various mortgage life insurance policies which are available from the different companies. You will however need to make sure that you have asked questions which pertain to the subject at hand. When you make a booking with a life insurance agent makes sure that you have all of the documents which you might need in order to get your life insurance readied.

As many of us see our homes as an investment for the future. When you are looking into using your house as a mortgage deal you should think very carefully about the difficulties that you might encounter. To help you out of these potential disasters you will need to see what sort of mortgage life insurance you can get from the insurance company you are using.

As each mortgage is different it is to your advantage to make sure that you have all of the pertinent details so that you can make a well informed decision. You will need to have an idea about which of the many different mortgage life insurance policies are for you. If you are still unsure about the policies which are available you can ask one of the agents to help you out.

Since these people are knowledgeable about the different terms and legal conditions which can be found in a mortgage contract they will be best suited to advise you. If you have any questions or details that you need to ask this is the time. With so many different low cost life insurance policies to look at you should take your time.

Once you have received all of the pertinent details you should take your time to look at the application form. This form will inform you about the various documents that you need to have to qualify for a mortgage life insurance.

If you are unsure about any aspect of this application form you would be wise to ask questions about items that are puzzling to you. With all of your questions answered and the application all filled out you are ready to get your mortgage life insurance passed.

Using the economic climate obtaining even worse each evening and also the unemployment lines obtaining more time you may request your self if this could be considered a great time to begin a house company? Should you select wisely a house dependent company can permit you to thrive financially and provide you with the versatility which will permit you to invest a lot more time in your own home together with your loved ones. The amount 1 point to keep in mind whenever you are selecting a house dependent company would be to adhere to your passion. Should you supply a useful assistance or perhaps a item that other people will require and keep the overhead expenses reduced, your company will thrive inside a booming economic climate or inside a financial mess. Right here may be the listing of reduced start-up price, best ten greatest house dependent companies to begin throughout a financial mess.

In your own home Daycare

Beginning an at-home daycare is an example of greatest reduced start-up price house dependent companies and it is amount 1 on our best ten listing. This company is really simple to setup but ensure to possess sufficient contracts that you are able to stick with to create a good income. With daycare getting so costly now times, numerous functioning families choose to make use of house evening cares wherever there kid will nevertheless get individual consideration at a lot more sensible price. Please examine for nearby guidelines and regulations prior to you start supplying the providers.

Action

2Dog Jogging / Pet Seated

Even via difficult financial occasions, individuals maintain investing on their pets. Beginning a pet seated company is really a excellent way for individuals that adore animals to create additional earnings. You may also provide dog jogging assistance for individuals who’re stuck at perform all evening. Examine for nearby regulations prior to you start and make sure to turn out to be bonded and insured.

Action

3Web Style

You do not require to become very skilled to begin a internet style company from house. All you’ll need is really a great individual abilities for promoting towards the companies in the local region. Numerous from the companies in the local region do not even use a webpage but invest a great deal of cash on costly and ineffective yellow page marketing. Understand the way to market your internet style providers and discover out what types of websites company proprietors want. You are able to usually outsource the technical perform and nevertheless make a really great income.

Action

4Freelance Composing

Numerous individuals make their additional earnings with freelance composing. Some even create a entire new career away from. There will usually be numerous locations wherever you will end up in a position to market your perform, each offline and on the internet. For offline composing work just choose up a copy of Writer’s Marketplace. For perform on the internet, discover individuals who require e-books, content articles, and emails for their autoresponder. Provide your composing providers to them with a competitive (but sensible) cost.

Action

5Accounting

Accounting isn’t a great match for everybody, but if this really is a thing that you take pleasure in think about getting certified and providing your providers towards the public. You are able to both begin your personal organization or purchase an currently current franchise.

Action

6Blogging

Yes, it is really feasible to generate income blogging, but you will have to create often and handle your time successfully. You will find numerous various methods to obtain paid for by blogging, regardless of whether you’re promoting items to gain internet marketer fee, promoting marketing room for cash, or by displaying Google AdSense contextual marketing.

Action

7Virtual Assistant

Should you are nicely organized and take pleasure in understanding about new points, you ought to a minimum of think about getting a virtual assistant. You are able to network with business proprietors to determine what type of assist they require. You may assist them by sustaining their sites, typing paperwork or working individual errands.

Action

8Business Coach

Company coaching is most likely an example of probably the most lucrative house companies you are able to begin. Should you possess the abilities to assist a small business succeed, you ought to a minimum of think about getting a small business coach.

Action

9Affiliate Advertising

Should you wants for the house company to become internet-based, you ought to strongly think about internet marketer advertising. The internet marketer advertising is depending on a idea of obtaining paid for a fee of items that you simply market.

Action

10Information Publishing

Info publishing is really a substantial company and there usually is going to be a lot more area for an additional publisher. Just believe about all the magazines, newspapers, and info publications and guides obtainable. They’re all promoting some sort of info. You, as well, may also market info that other individuals are prepared to spend you cash for. This could be carried out within the type of informational items, downloadable guides and e-books.

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Even more startling is the fact that the U.S. House of Representatives has noted in reports almost a decade old, that red light cameras are associated with an increase in accident fatalities. The report further stated that it is common for the timers on lights to be set in such a way as to increase the amount of tickets generated.

Alternative means of improving traffic safety have been suggested by way of engineering improvements, such as the design of roads, signal visibility and an increase in amber length. The USF College of Public Health suggests that when comparing the financial interest of the insurance industry with the effectiveness of camera implementation, we should be aware of the following:

Seven major States have already reported increased auto related injuries directly resulting from red light photo systems.

Traffic fatalities attributed to the running of red lights account for less than 4% of traffic fatalities in Florida. Intersection related fatalities in Florida are 4 times more likely to be attributed to cases other than the running of a red light.

Injuries resulting from running red lights have declined by 33% in under a decade without the use of traffic cameras.

The Transportation Research Counsel has reported that cameras are directly linked to increased auto accident costs.

Major studies that have determined that red light photo systems lead to a reduction of auto accidents have been found to be significantly unreliable. Furthermore, these studies are, in some way or another, tied to the Insurance Institute for Highway Safety and contained some significant defects in standard data analysis procedures.

Insurance companies are the leading advocate of traffic light camera systems.

David Demello, a Florida traffic system analyst, is fearful of the effect that such devices will have on our community. “When you look at what is really behind red light photo systems in Florida, you have to realize that it is all a hoax. Look a little further and you will certainly be disturbed at the loss of life that follows the implementation of these programs” he says.

Demello is not alone. In fact, many individuals have grown increasingly wary of auto insurance companies following State Representative Ron Reagan’s involvement with the Insurance Campaign Institute. Essentially a training ground for political campaigning, the ICI covers all facets strategic political maneuvering. Reagan, is said to have pushed the Mark Wandall Traffic Safety Act through after taking part in the program two times. The act allows cities to utilize red light cameras and is considered to his was of paying back the insurance companies that facilitated his getting elected. “As with most things, it comes down to money and power” says Demello as he shakes his head… “and innocent people getting hurt as a result.

During the recent credit crunch brazen criminals are trying their luck to steal car keys from people’s homes in order to take a car and use it for further criminal activity. Some of the ways these thieves are taking car keys is by entering homes through doors that have been left unlocked or open or by ‘car-jacking’ which is an act of aiming to steal a car at a set of traffic lights and force the occupants out of the vehicle in order to drive off with it. This is a serious crime that has led to many people being left injured physically and mentally due to the actions of these offenders.

The most common way of obtaining car keys from homes unlawfully is known as ‘hooking’. Thieves will use a wire that is stuck through a letter box or cat flap in an attempt to ‘hook’ car keys that have been left close to doors and hooked on to the wire.

Car insurance companies are therefore warning people to increase the securities levels not only of their cars, but also of their homes by installing sophisticated security systems to deter would be thieves.

There were 1.5 million car related crimes during 2007 to 2008 despite a fall in car crime of 66% since the mid 1990’s. However, there has been a rise of 15% in the robbery of car keys from car owner’s homes which has led to a rise in premiums of car insurance and home insurance.

Specialists in car insurance believe that criminals are now targeting a weak link in the car security chain, with one leading figure saying, “Last year 15,700 cars were stolen after keys were taken in a burglary and 2,900 cars stolen after keys taken in muggings, pick pockets or car jackings. We advise all car drivers to treat their car keys like cash – guard and protect your keys to keep hold of your car.”

In order to provide coverage to everyone, the major health insurance firms agreed to drop their objection to selling policies to people with pre-existing conditions. In turn, they wanted the federal government to mandate all residents to buy health insurance (albeit subsidized for the working poor). Private insurers are in favor of the Massachusetts healthcare reform model, which penalizes those who are able but unwilling to buy insurance coverage with fines and other deterrents. They believe that the Senate Finance Committee’s health reform bill in particular is flawed because it doesn’t include deterrents strong enough to prevent people from purposefully going without a health insurance plan until they become extremely sick. Obviously, it would be impossible for them to be profitable and satisfy shareholders if they pay out millions of dollars in claims without receiving premiums from the healthy. Massachusetts has managed to cover 97% of its residents with this strategy, but there have been complaints of cost overruns.

While the industry is willing to provide comprehensive coverage to all, as opposed to a few guaranteed issue health plans with minimum benefits, there are other sticking points with politicians. Prominent Democrats, including Speaker of the House of Representatives are adamant about including a public option in the healthcare reform bill. The possibility of a government-run health insurance plan directly competing with, and undercutting, for-profit insurance companies is something the latter are strongly against. Insurers are also opposed to proposed tax increases intended to cover a portion of the immense cost of reform, according to the Associated Press. Even though Congress has been working with doctors, hospitals, and pharmaceutical companies on reform, negotiations with the insurers have broken down as pressure on the Obama administration to include the public option has increased. Insurers have to consider whether it’s worth continuing to cooperate with congressional leaders so they can achieve the goal of passing reform this year, or if it’s a better idea for the increasingly vilified industry to cut its losses and fight back in earnest.

Despite those improvements for consumers, one of the primary issues is still present. The law does not take any steps to repeal the antitrust exemption for health insurance companies. Such an exemption is only enjoyed by a limited number of industries, including Major League Baseball. Basic economic theory states that the potential of monopolies and collusion decreases competition in the marketplace. Less competition means higher prices.

In many areas, a single health insurer dominates. Therefore, consumers have not been able to shop around for better rates. The regulated exchange markets created by the law are a start towards injecting more competition, but it is strange that Congress and the Obama administration did not take a further step towards those ends. Repealing the anti-trust exemption would also help lower premiums.

Technically, health insurance plan providers are not completely exempt from antitrust laws. Rather, they are subject to state (instead of federal) regulations–including those relating to antitrust law–as a result of 1945′s McCarran-Ferguson Act. Historically, states have rarely used this power to prosecute companies. Some experts believe that Congress will leave the issue alone if the states step up enforcement of their own antitrust laws.

There was an attempt to include antitrust reform in the legislation: the original House of Representatives bill included it. However, it was not in the Senate bill that passed last month. The reconciliation process did not allow the House to include such a provision in the final product. Now, several representatives have introduced and passed a separate bill that reaches that same objective. Getting the repeal of McCarran-Ferguson through the Senate will be difficult, as the Democrats now lack a filibuster-proof majority. The aims of the bill itself, though, could gain some moderate Republican support–it encourages affordable health insurance through more competition in the free market, which is a stated goal of theirs. Still, the GOP could decide to band together and block the bill simply because it was proposed by Democrats in advance of the 2010 midterm elections.

The ongoing health care overhaul currently being debated has brought to the fore the privilege the insurance industry has enjoyed for the past 64 years: Insurance companies, like Major League Baseball, have been exempt from federal antitrust laws.

Monopolies stagnate markets by preventing others from engaging in healthy market competition. Is the exemption a dying dinosaur?

Brief history of antitrust laws

Given the fears of monopolies in the late 1800s and to preserve America’s free market economy, Congress passed the Sherman Antitrust Act in 1890; its aim being to combat anticompetitive practices, reduce market domination by individual corporations, and preserve unfettered competition as the rule of trade.

Soon the courts found certain activities to fall outside the scope of the Sherman Antitrust Act. To plug this loophole Congress passed the Clayton Antitrust Act of 1914. The Clayton Act added the following practices to the list of impermissible activities: price discrimination between different purchasers, if such discrimination tends to create a monopoly; exclusive dealing agreements; tying arrangements; and mergers and acquisitions that substantially reduce market competition.

The Robinson-Patman Act of 1936 amended the Clayton Act. The amendment aimed to outlaw certain abuses in manufacturers’ practices.

Brief history of the insurance exemption

Before the 1940s, insurance regulation fell under sole province of the states. A Supreme Court case by the name of United States v. South-Eastern Underwriters challenged that in part on grounds of antitrust. The Supreme Court rules that the federal government could regulate insurance companies under the authority of the Commerce Clause in the U.S. Constitution.

The McCarran-Ferguson Act of 1944 provides that federal anti-trust laws will not apply to the “business of insurance” as long as the state regulates in that area, but federal anti-trust laws will apply in cases of boycott, coercion, and intimidation.

The intention of the McCarran-Ferguson Act was to return the legal climate to that which existed prior to South-Eastern Underwriters by specifying that the states retained the authority to continue to regulate and tax the business of insurance.

According to Senator Patrick Leahey, Judiciary Committee Chairman, the antitrust exemption in the 1944 McCarran-Ferguson Act was meant to be temporary. Senator Trent Lott and others have argued that the exemption has led to collusion by insurance companies on setting rates and denying claims, as witnessed by the experience of hurricane Katrina. McCarran-Ferguson, in other words, is obsolete, and potentially damaging.

Department of Justice position

Christine A. Varney, Assistant Attorney General (Antitrust Division), testified before the Committee on the Judiciary United States Senate hearing on “Prohibiting Price Fixing and Other Anticompetitive Conduct in the Health Insurance Industry.” The following points can be gleaned from her testimony:

Ms. Varney argues,

“Health insurance reform should be built on a strong commitment to competition in all health-care markets, including those for health and medical malpractice insurance. Repealing the McCarran-Ferguson Act would allow competition to have a greater role in reforming health and medical malpractice insurance markets than would otherwise be the case.

“The House health-care reform bills contemplates quasi-national exchanges, the Senate Finance bill contemplates national health insurance plans, and all the bills contemplate interstate compacts that would allow insurers to sell a single product across an array of states. These moves are all likely to increase competition and make it less likely that antitrust enforcement is necessary, but they also make the presence of the exemption more dangerous.”

Conclusion

When the top lawyer of the Justice Department identifies the exemption as “dangerous,” to the functioning of quasi-national exchanges [this is the public option, really], the time might just be ripe for Congress to remove the exemption.

On the other hand, by spending countless millions of dollars lobbying Congress, the insurance industry might still have the upper hand in influencing the health-care reform. Why should they lose this monopoly? In some states, one or two insurance companies control all the insurance business. Is this a ‘free market economy?”

Health insurance would see significant changes under healthcare reform. The federal government was planning to enact regulations that would, among other things, put a cap on the health insurance premiums they can charge to people that are older or in poorer health. Reform would also prevent health insurers from denying coverage to people with pre-existing conditions. While most of these changes have the potential to hurt health insurance companies’ profits, major insurers had already made a calculated decision to support aspects of healthcare reform.

Insurers’ willingness to submit to some reform demands was largely based on the establishment of a health insurance mandate. The mandate would require all Americans to buy individual health insurance, or pay a fine. Individuals and families under a certain income level would receive federal subsidies in order to buy a health insurance plan. Health insurance companies are in favor of that portion of the Democratic proposal, because it would bring millions of new consumers to them–many of whom would be younger, healthier individuals and more profitable for insurers. Although some analysts doubt that the subsidies or penalties will be large enough to convince enough consumers to come in and offset the influx of unprofitable patients in poorer health. However, if even a fraction of the 30 million uninsured Americans signed up, health insurance companies may benefit.

In fact, prominent executives from health insurance companies like Aetna have admitted that they must turn to new models of generating revenue, whether or not any form of national healthcare reform passes. The recession has resulted in a slump in sales of group health insurance; businesses are no longer paying for insurance for laid-off employees, and some businesses have dropped their corporate health insurance altogether, due to costs. Many laid-off employees are unable to afford COBRA health insurance, even with temporary subsidies. As a result, there is a growing market for self employed health insurance. Unfortunately, that group is largely crowded out of the individual health insurance market. They may need to work on offering more affordable health insurance options for pure business reasons. While health insurance is generally considered a need, it is less essential when compared to food, water, and shelter in the minds of consumers. If health insurance quotes are too expensive, many consumers will drop them altogether. This does not bode well for the health insurance industry.

Health insurers are also wary of healthcare reform in individual states. If the current bill dies in the Senate and House of Representatives, health insurance companies may be forced to contend with 50 different sets of regulations. Some of those laws may be stricter than others. Industry trade groups, such as America’s Health Insurance Plans, think that the cost of complying with such disparate legislation may end up being even more costly than the limitations imposed by the federal legislation. Doing so will also be more difficult without the added government leverage needed to lower doctor and hospital fees.

Finally, there is a fear that if this legislation fails, it will come back even more unfavorable towards health insurance companies. If the status quo is retained, health insurers may reap more profits in the short term. However, the government may later take even more extreme action if health insurance premiums and costs continue to rise. For example, the idea of a government-run public option could gain more traction than it did this time around.

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Why have medical insurance companies been able to avoid antitrust regulation for so long? There are mitigating factors that can be used to avoid the Department of Justice’s attention; in the case of Major League Baseball, the fact that they are the only professional baseball league allows them decreased scrutiny for potentially anti-competitive business practices. However, there are many health insurers: publicly traded, for-profit companies such as United Health Care, as well as not-for-profit organizations like Blue Cross Blue Shield, are in the market.

According to the industry, their exemption from federal antitrust law is deserved because the states are responsible for regulating insurance. Many Democrats in the House worry that poorly-funded state regulatory agencies are insufficient, and several consumer groups share that concern. The Senate has not been as adamant about this type of reform, but Majority Leader Harry Reid has promised to consider it. Proponents believe that it will allow consumers more choice over their medical insurance.

Experts are speculating on what this recently introduced bill means for the comprehensive health insurance reform pushed by the Obama administration and Democratic party. The broader legislation passed by the House includes the repeal of the antitrust exemption, while the Senate version does not. A spokesperson for House Speaker Nancy Pelosi insists that this bill does not mean that reform will be chopped up into bits and pieces in order to pass it. Still, top Congressional Democrats are undecided on how to move on with the legislation after the loss of their filibuster-proof Senate majority.

Rules Committee Chairwoman Louise Slaughter, who wrote the House bill’s antitrust provision, does not believe the nation can afford to wait for Pelosi and Reid to craft a new strategy. She thinks that low cost medical insurance will be more widely available if health insurance companies are forced to engage in more competition. It is possible that the separate bill could receive a few moderate Republican votes; while the appearance of the federal government infringing on states’ rights is certainly an issue, the idea of removing what looks like an unfair advantage (as opposed to making over the entire health care system) has greater appeal to their constituents.

(Image: Johnson Bottini, LLP)