Report: Insurers gaining power

Will new legislation designed to reform the health insurance industry do what HIPAA did for privacy and the Medicare Modernization Act did for prescription drugs? As ever, the answer to that one depends on where you stand. The debate picks up this week as legislation that could change the way the insurance industry operates moves toward a showdown in the senate. Supporters continue to argue that the Enzi bill will help make insurance more affordable by allowing small businesses to band together and purchase policies from any insurer in the nation. Consumer groups say any good would be outweighed by the harm done to patients. The new law would take precedence over many existing state laws regulating the insurance industry. That could mean that state laws requiring that insurers provide screenings or treatment for specific conditions could be ignored.

The GAO released a report Friday that finds individual insurers are gaining increasing power in the state system. In the typical state, the biggest insurer usually holds 43 percent of the market. These findings are similar to those in a report from the AMA last month.

- see this New York Times article