Cyrus Dugger

Should Insurers’ Anti-Trust Exemption Disappear? CNN Has An Answer

From the Foundation for Taxpayer and Consumer Rights:

Should Insurers' Anti-Trust Exemption Disappear? CNN Has An Answer A bipartisan group of U.S. Senators – including Senators Reid, Lott, Leahy and Specter - have introduced legislation to repeal the insurance industry's anti-trust exemption. Unlike most industries, insurance companies are not prohibited from colluding and coordinating in ways that would put most companies in the crosshairs of the Federal Trade Commission. CNN's recent investigative reporting on how auto insurers' common tactic of not paying fair value to accident victims makes the case for reform. As CNN showed, insurance companies don’t compete by providing quality benefits, they cheat based on common tactics for limiting benefits and increasing profits.

View CNN's "Insurance Surprise" part one and part two.

Californians, in 1988, voted to apply the state's antitrust laws to the insurance industry as part of the nation's most comprehensive reform of insurance companies, known as Prop 103. Read FTCR's Douglas Heller's recent op-ed on Prop 103.

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Posted at 9:32 AM, Mar 07, 2007 in
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