Democrats Targeting Insurance Industry's Antitrust Protection

As the issues surrounding President Obama's push for a major health care overhaul for the United States continue to emerge, it is becoming clear that the ultimate fight isn't going to be between Democrats and Republicans. The fight is going to be between the Obama administration and the health insurance industry. Both are wielding quite a bit of power at the moment, but only one of them truly controls how the game is played.

In an attempt to step up federal regulation and oversight of the insurance industry, democrats are looking into the option of removing the antitrust exemptions that the insurance industry currently enjoys. Removing those exemptions would allow federal regulators to climb into the meat and potatoes of the insurance industry. They could look at the realities of the relationships that exist between hospitals, doctors and insurance companies - and likely determine why the cost of health care in this country is soaring out of control.

This move is most likely the establishment of a bargaining chip, intended to ensure that a public-option insurance solution is included in the final package later this year. In exchange for said public-option, democrats would likely back down from trying to remove the antitrust exemptions and let the insurance companies continue to run their businesses as usual, and free from the additional layer of federal regulation.

Of course, with the public option in place, the government will be indirectly forcing the insurance companies to regulate themselves and to streamline their processes. Assuming that government-provided health care is cheaper, the insurance companies will have to become more efficient in order to compete.