Healthcare & Health Insurance Reform

Deregulation of Health Insurance Industry

Work towards the deregulation of healthcare insurance to promote more competition in the market place and allow Illinois residents to purchase out-of-state health insurance plans in the event a health insurance company from Illinois cannot suit their needs.

As the government is so heavily involved in healthcare, it is inexcusable that hospitals are allowed to charge us these absurd charges for products used to treat people in their time of need, while having government support for near monopolies on the industries in their respective states. In fact, the practice of health insurance companies not having to adhere to antitrust laws while other industries do is one of the primary causes of increased costs and is supported by the McCarran-Ferguson Act of 1945.

The McCarran-Ferguson Act was passed by Congress in response to the U.S. Supreme Court Case United States v. South-Eastern Underwriters Association. The Supreme Court held that the federal government could regulate insurance companies under the Commerce Clause and that federal antitrust laws do apply to the insurance industry. In response to this, Congress passed the McCarran-Fergusan Act which limit the applicability of antitrust laws to the insurance business and assured insurance companies they could dominate the industry of the state.

Bubba believes this Act is the single biggest cause of the limited competition we see among health insurance companies, and its elimination is one of the quickest ways to see a reduction in the cost of healthcare. Bubba will fight to challenge the legal authority of the McCarran-Ferguson Act and its applicability to society today in light of the advancements that have been made from 1945 to 2018.

Capping Hospital Mark Up Costs

The rates hospitals charge patients amounts to price gouging at a time when someone is in need of medical treatment and in a state of desperation. While this practice is not illegal yet, it is certainly unethical. These excess costs are driving up health insurance costs but these costs are merely passed onto consumers because the health insurance companies are allowed to monopolize the industries of the state. Bubba will make all efforts to allow more competition among health insurance companies fighting to let the people of Illinois purchase out of state health insurance plans in an effort to decrease costs.

While in most areas of employment, Bubba supports deregulation, when it comes time for medical treatment, a person’s decision to get treated should not be based on whether or not they can afford to pay over 1000% markup on items hospitals use for medical treatment. This is outrageous and largely goes unchecked because companies and group representing hospitals, pharmaceutical companies, and insurance companies all make considerable contributions to the campaigns of current elected officials and both the Democrat and Republican parties.

This is unacceptable and immoral in light of the mandate that everyone is supposed to purchase healthcare or risk a fine when they pay their taxes. If something is to be government mandated, the result should not be that the CEOs and owners of these industries receive millions of dollars each year while costs of healthcare and healthcare premiums continue to increase and make up roughly 25% of budgets for average Americans.

Healthcare should be affordable. A person should not have to worry about coming up short on other bills in order to afford their health insurance payments. Bubba believes more competition will result in lower costs, but he also believes that working towards limiting the price markup on items used for medical treatment is also a means to lower health insurance costs and encourage health insurance companies to come back to the market place in Illinois.

In a world that is working towards universal healthcare and where the distinctions between government involvement in healthcare and the private sector are so blurred one cannot see where one begins and the other ends, the government should take the side of protecting the people rather than the profit margin of healthcare industry CEO’s. This can be done by setting caps on the amount hospitals can mark up products sold to patients and open up the insurance market for new companies.