We have treated the utility industry since the Sherman Antitrust Act was signed into law in 1890. Until the 1990’s most health insurance companies were mutual companies … the were NOT FOR PROFIT businesses and their policy holders basically owned the company. but starting in the 1990’s the healthcare insurance industries began “demutalizing” … they converted the companies into FOR PROFIT, PUBLICLY HELD COMPANIES and their focus change to their bottom line profits and price of their stock. The people who were stockholders became more important to the insurance company and large group health insurance plans than the healthcare that they provided.
In the last decade or so… mergers having been happening and we are being left single companies that provide various services,, that can both self serving and “feed/refer” business from one component to another.
CVS Health is a good example, first in the pharmacy business in 1964 with pharmacy depts in the then Consumer Value Stores. Today, they have some 10,000 community pharmacies, Minute clinics in their stores, owns the largest long term care pharmacy (Omnicare), one of the largest Prescription Benefit Managers (Caremark), one of the largest Part D insurers (Silver Scripts) and currently trying to close a 60+ billion dollar deal acquiring Aetna insurance with some 43 million beneficiaries. Their Minute Clinics which were originally suppose to deal with just acute health issues is starting to move into treating chronic health issues.
These health monopolies may or may not be able to “force” a pt to use all their services, but they can put into place financial incentives or disincentives to stay within their system and force pts to contribute to their bottom lines.
All of these insurance companies are exempt from Sherman Antitrust by the McCarran Ferguson Act.. So what is ILLEGAL for other business to do, these insurance companies can do without any concern of violating any law or suffering any consequence from the DOJ.
In the last year, Arkansas, Ohio, WV has caught PBM’s charging excessive costs for prescriptions (multiple millions in each state) they manage the bill paying for state employees and/or Medicaid pts. These are national PBM’s so it may not be long before other states start finding out that they are being “taken to the cleaner” by these PBM’s and taking some corrective action.
Personal experience, Barb had a chronic medication that our Part D/PBM wanted a prior authorization and a $600.00+ copay for her 90 day medication and I was able to find a big box store where I could purchase the same medication/strength/quantity for $44.00 – by PAYING CASH. Saving abt $2,400.00/yr on JUST ONE PRESCRIPTION. Maybe this is why they can charge pts about $30/month for premium…
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