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  • Free Markets are Destroyed by Congress, Not Created January 30, 2015
    By Jane M. Orient, M.D. When people clamor for Congress to pass a “free-market health plan,” they are forgetting two things: Congress only does laws, which restrict freedom. We need fewer laws, not more. And the free market is by …
  • Ralph Weber Talks MediCrats with FreedomWorks – Part 3 January 26, 2015
    MediBid is the free market answer to rising healthcare costs. Employer-sponsored plans, as well as self-insured individuals, make up most of MediBid’s customers. On MediBid, a patient makes a procedure request which gets sent out to physicians and facilities around …
  • Medical Debt Still a Problem for Those With Health Insurance January 23, 2015
    by Adrienne Snavely Medical debt can affect anyone of any age in any state in any income bracket. Medical debts account for more than half of debt collections on credit reports. One in three Americans struggle to pay medical bills, …
  • Q&A with Direct Pay Physicians January 22, 2015
    Direct pay physicians answer colleagues’ questions about third-party-free medical practice. From January 9, 2015, New Orleans AAPS workshop.
  • Ralph Weber Talks MediCrats with FreedomWorks – Part 2 January 21, 2015
    The pitfalls of Obamacare are that it makes healthcare affordable to the employee, yet unaffordable to dependents. Some plans cover children, but not spouses. This means less options for families. The independent physicians are being bought out by hospitals and …
  • Cash and out-of-network: good for medicine as free agency is for sports January 21, 2015
    Andrew Schlafly, J.D., General Counsel, AAPS, opens the 21st Thrive, Not Just Survive workshop held Jan. 9, 2015 in New Orleans, LA.
  • Opting Out of Medicare January 20, 2015
    Lawrence Huntoon, MD, PhD, presents via Skype at the AAPS 21st Thrive Not Just Survive Workshop on Third Party Free Practice, January 9, 2015
  • Say Goodbye to 3rd Party Medical Payments January 19, 2015
    Obamacare is increasing costs, restricting access to care, and putting Medicrats in charge. Out of this adversity comes innovative physicians who are changing the world of medical care. Doctors know what is best for their patients, so they must be …
  • My Direct Pay Practice January 19, 2015
    Brenda Arnett, MD http://arnettmd.com, talks about why and how she launched a third-party-free internal medicine practice. From January 9, 2015.
  • AtlasMD: Direct Pay Primary Care better for patients and physicians January 18, 2015
    Dr. Josh Umbehr, founder of http://atlas.md speaks at AAPS XXI Thrive Not Just Survive Workshop, January 9, 2015 in New Orleans, LA.
  • Epiphany Health, Affordable, high-quality direct primary care January 17, 2015
    Lee Gross, MD, Founder, Epiphany Health http://www.epiphanyhealth.net & President, Docs 4 Patient Care Foundation http://www.d4pcfoundation.org addresses the AAPS Thrive Not Just Survive XXI conference, January 9, 2015, in New Orleans, Louisiana.
  • Ralph Weber Talks MediCrats with FreedomWorks – Part 1 January 16, 2015
    Wayne Brough of FreedomWorks interviews MediBid’s CEO, Ralph Weber, about Obamacare and Weber’s book MediCrats. Weber has found innovative ways to bring the free market to healthcare. MediCrats, by definition, are medical bureaucrats who add administrative burdens and increase costs. …
  • Third Party Free Specialty Practice January 16, 2015
    Gerard J. Gianoli, M.D., F.A.C.S. of The Ear and Balance Institute, Covington, Louisiana, http://EarAndBalance.net speaks at the AAPS Thrive, Not Just Survive workshop held January 9, 2015 in New Orleans.
  • Stop the Interstate Licensing Compact January 15, 2015
    Dr. Ken Christman explains how the FSMB’s proposed compact is a backdoor for MOC and MOL. January 9, 2015, New Orleans, LA.
  • Update on AAPS Legal Initiatives in War on Doctors and Patients January 15, 2015
    Andrew Schlafly wraps up Thrive XXI with a look at ongoing and future AAPS legal initiatives to protect patients and their physicians.
  • The Answer to American Medicine is NOT Coming from DC January 15, 2015
    … it is coming from physicians who are kicking ObamaCare and insurance OUT and working directly with their patients, explains AAPS Executive Director, Jane M. Orient, MD. From AAPS Thrive, Not Just Survive XXI, Jan. 9, 2015, New Orleans, LA.
  • The End of the 10-Minute Doctor’s Appointment January 14, 2015
    The patient-physician relationship should be balanced, not one-sided with physicians skimping on visit time and not allowing patients to ask enough questions or explain their symptoms well. Eighteen seconds is the average time a patient is allowed to talk before …
  • The Physicians Declaration of Independence in 2015 January 14, 2015
    We need a critical mass of truly independent doctors and core who will pass along the art of medicine to the next generation, explains AAPS President Richard Amerling, MD on January 9, 2015 at talk to colleagues in New Orleans, …
  • Physicians & Patients: Take Your Power Back January 14, 2015
    Dr. Elaina George explains that it is crucial for patients and physicians to work together outside of ObamaCare and insurance-dominated system. She discusses alternatives to ObamaCare such as health care sharing programs like Liberty HealthShare: http://LibertyOnCall.com
  • Self-Funded Awareness & The Movie “Dune” January 7, 2015
    by G. Keith Smith, MD “The sleeper has awakened.” Anyone who has seen the movie “Dune” knows the scene where Paul Atreides proclaims his new awareness. Having recently attended the annual meeting of the Self-Insurance Institute of America I was …

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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