The Assault on the McCarran Ferguson Act and the Politics of Form

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[Music] issue number three then the Karen Ferguson appeal for health insurance what do baseball and insurance companies have in common both of them are exempt from antitrust regulation mccarran-ferguson Act provides this antitrust exemption both what is antitrust to students Jeff and Alex have lemonade stands on their street selling for 50 cents and 75 cents Alex could cut her price to 50 cents to match Jeff but she would lose 25 cents per glass instead she talks to Jeff and they decide to both sell for a dollar they know that they are the only option on the street so people who are thirsty must buy their one dollar lemonade when they met and discussed prices they violated antitrust laws baseball and more importantly insurance companies are exempt from these laws the health insurance companies if they want can meet and discuss fee schedules with other companies promoting anti-competitive conduct for example they can lower the fee schedule for a crown and since they work together with o