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  • Ways to Handle Stress July 20, 2015
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  • A Remedy for Healthcare July 17, 2015
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  • MediBid: A Free Market Fix – Interview with Ralph Weber at FreedomFest July 15, 2015
    Joe Thomas of WCHV, Charlottesville, VA interviews MediBid CEO Ralph Weber from FreedomFest in Las Vegas, NV July 2015. MediBid has doctors, surgery centers, and hospitals in ten countries. Most patients who use MediBid have employer-based and self-funded health insurance …
  • The American Heroin Epidemic July 13, 2015
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  • The Widowmaker: A Documentary Film July 10, 2015
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  • Brace Yourself: Large Health Insurance Premium Increases Coming 2016 July 8, 2015
    Health insurance companies want to increase their rates in the amount of 20-40% or more, since new Obamacare customers are sicker than expected. Blue Cross/Blue Shield plans hikes across the country of 23-54%. The insurance companies say that the increased …
  • Crowd-funding Helps with Medical Bills July 6, 2015
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  • A Healthy Body for Everybody – July Lab Specials July 3, 2015
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  • Colonoscopies: Don’t Flush Your Money Down the Drain July 1, 2015
    Preventative medical procedures, such as colonoscopy, are now required to be covered by Obamacare health insurance plans, as well as the anesthesia it requires. What may be more uncomfortable than the procedure itself is the price of the bowel prep …
  • Taking Control of Your Medical Records June 29, 2015
    Leaving your health records solely in the hands of doctors and hospitals is a big mistake. This gives them too much power over your information and increases possibility for errors. When you are in control of your own records, you …
  • High Deductible Plans are Changing Patient Interaction June 26, 2015
    High deductible plans are changing where patients get medical care and how they pay for it. Once a bill exceeds 5% of household income, patients most likely cannot pay for it themselves. Major employers offer high deductible plans (an average …
  • Beet Juice Lowers Blood Pressure June 24, 2015
    A small study in London showed that drinking a cup of beetroot juice significantly lowered blood pressure in hypertensive patients within six hours. After 24 hours, their blood pressure remained lower than those in the control group. The benefits come …
  • Supreme Court Decision on Healthcare Subsidies to Come This Week June 22, 2015
    by Jane Orient, MD The Big Lie of ObamaCare is in the title: the Affordable Care Act. Administration officials invoke “affordable” over and over again. The U.S. Supreme Court could well blow the Democrats’ cover in King v. Burwell if …
  • Shopping While Hungry Leads to Poor Eating All Week June 19, 2015
    A study at Cornell University examined the food selections that a group of shoppers put in their virtual online grocery cart. The shoppers that had not eaten four or five hours beforehand selected 23% more processed junk food than those …
  • Long ER Waits Continue in Canada as Budget Cuts Increase June 17, 2015
    Lee Parker of Ottawa had to wait 48 hours in the Emergency Room before being admitted for heart attack complications. He watched other patients come in, but since there was no room for them, they lay on gurneys in the …
  • Health Benefits of Cucumbers June 15, 2015
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  • Should a Business Offer Healthcare Benefits? June 12, 2015
    Offering healthcare benefits is optional for small businesses, but is important to an employee as one of the most popular benefits in a compensation package. An employer who wishes to stay competitive with other businesses in the community will most …

McCarran Ferguson Act of 1945 Stands in the Way of Obamacare

The McCarran Ferguson Act of 1945 Stands in the Way of Obamacare

By Ralph F. Weber

In 1944 the Supreme Court ruled that insurance was an item of commerce, and could be regulated by the federal government under the commerce clause. This ruling overturned a previous ruling by the Supreme Court in 1869 in the case of Paul VS. Virginia, (1) which held that “issuing a policy of insurance is not a transaction of commerce,” effectively moving the business of insurance beyond the United States Congress’s legislative reach.

That Supreme Court ruling in 1944 came from the case of the United States VS. South-Eastern Underwriters Association (2) which also held that the Sherman Act, the federal antitrust statue, applied to insurance.

The states protested the ruling and in 1945 Congress passed the McCarran Ferguson Act (3) which gave the states the authority to regulate insurance (4). A result of McCarran Ferguson was that each state was able to create its own mandates dictating what medical procedures must be covered by policies issued in each state. More importantly, McCarran Ferguson is also the act which makes it impossible for the department of Health and Human Services to establish insurance exchanges in the states, as is required in order to implement PPACA.

The department of Health and Human Services is promising grants to the states in order to set up “state run health exchanges”. In reality HHS needs the states to set them up, or grant permission to the HHS, because the federal government lacks the capability and the legal authority to set up healthcare exchanges which comply with the mandates of 50 different states as dictated by McCarran Ferguson.

Steve Larsen, deputy administrator and director of the Center for Consumer Information and Insurance Oversight, Centers for Medicare & Medicaid Services, U.S. Department of Health and Human Services, admits that: “The Affordable Care Act simply requires legal authority under state law to implement the exchange. That could be existing law, legislative action, or executive order. (5)” He likely understands that McCarran Ferguson stands in the way of implementation of the exchanges.

This week, Congress will consider legislation, the Medicare Decisions Accountability Act (HR 452), which repeals the ACA’s Independent Payment Advisory Board (IPAB), and with it the McCarran Ferguson act of 1945. Although the IPAB is an extremely troubling part of the ACA, as it acts as the rationing entity for healthcare, repealing it along with McCarran Ferguson will remove one of the largest roadblocks in implementation of the ACA. Furthermore, it will give politicians the opportunity to tell their constituents that they voted against one of the least desirable parts of Obamacare.



At MediBid, we restore market forces to medical care. Doctors get to set their own rates based on their training, experience, and outcomes, and patients get to shop for medical care across state lines and international borders. Many times with MediBid, you will find procedures that are more effective than procedures allowed, or covered by health plans. Transparency and competition are the only way to achieve reasonable costs. Many of our employer clients offering group health insurance through MediBid save $5,000 per employee per year. Those are substantial savings. Patients are saving an average of 48% vs. insurance discounted rates, or 80% vs. retail. Contact us for more information.
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