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To: kcvl

Being an expert in this area, I can tell you that this is not what it appears. The antitrust exemption allows small companies to merge their statistics in order to estimate loss costs. That allows more companies to compete. Without that exemption, small companies wouldn’t know whqat premiums to charge, so they wouldn’t compete.

In practice, this kind of merged statistics is very important in many lines of insurance, such as fire or liability, but is not significant in Health insurance. In short, this law will have little effect. To the degree it has an effect, it will be to reduce competition.


45 posted on 02/24/2010 3:35:18 PM PST by december12
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To: december12

Not buying it.

In other industries if they “share” information w/r/t pricing ... they can be hit with collusion charges.

Insurance should be held to the same rules as every other industry.


90 posted on 02/24/2010 8:21:02 PM PST by Lorianne
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