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Anti Trust Laws

In: Business and Management

Submitted By thatgirl4real
Words 1043
Pages 5
The goal of the game monopoly was to buy as much property as possible to make the most money as possible hence the name monopoly. By owning the most property, one is the most likely player to win because he or she in theory collects the most money. In business, this is illegal and antitrust laws are what mandates and controls corporate America’s ability to create monopolies. This attempts to keep a fair playing field among competitors in similar businesses (Ftc Guide To Antitrust Laws, 2008). With the current health care debate issues concerning anti trust laws are also an issue for concern.
A major facet of President Obama’s health care reform is for those within the health care community from providers to drug companies to commit on some level to keeping down cost. According to the New York Times, “Any agreement among competitors with regard to prices or price increases — even if they set a maximum — would raise legal concerns” (Pear, 2006) Anti-trust laws are imperative to keep the market competitive regardless of the type of business one runs. However, especially in terms of medical care it is important that issues, such as price gouging do not take place because of the large number of people who struggle with health care cost. Unfair business practices are always a point within business constantly under monitoring and creating changes because of said monitoring. Health care is essential to the everyday lives of the American people, from those who can afford to pay cash for their medical services to those who use public assistance, and everyone in between. If any area of business needs to stay abreast of issues concerning anti trust laws and monopoly health care is number one because of the domino effect health care can have on the economy (Jost, 2009).
Another aspect of anti trust laws is the ability to keep the market competitive. In the instance of health care, the competitive nature brings about the greatest assets to health care. If medicine becomes a numbers game only then what motivates people who research and develop technology for the joy of helping people or the accolades of his or her peers. Federal and state laws help to mandate all areas of health care not only for the people but also for the industry as well. President Obama’s health care bill is being torn apart for the idea of trying to keep the market in terms of cost comparable and detractors are hiding behind anti trust laws as a way to discredit the president’s health care reform bill ("The Affordable Health Care Act", 2012). President Clinton faced the same adversity when trying to regulate the cost of prescription medicine in 1993. The rejection of Clinton’s proposal by the justice department stated, “setting maximum prices were just as illegal as agreements that set minimum ones” (Pear, 2006).
In 1890, the Sherman Anti-trust Act was enacted with the goal of prohibiting companies from forming monopolies. In 1914, the institution of the Federal Trade Commission Act was to assist consumers and protect them from unfair business practices (Jost, 2009). Both of these acts recognize a need for the consumer to have at least some level of protection from big business but in the case of Obama’s plans within the health care act, the goal is create an environment in which health care organizations of all level can work together to offer affordable services. The reality is President Obama is trying to find various ways that members of the healthcare community can work together to contain cost (.Dolfsma, & McMaster, 2011)
The focus when regulating health care is more likely to be about health care issues. Concepts such as making sure a facility operates in a certain manner to protect the patient from a health perspective. However, whereas many have complained about the price of health care service outside of basic anti trust laws nothing is really in place to stop medical professionals from charging what they want to for whatever services they provide.
At some point, something has to take place about the growing number of uninsured Americans. Obama is attempting to rectify the situation yet the laws will more than likely have to be amended for these changes to take place. The anti-trust laws serve the purpose of stopping businesses from taking advantage of the consumer and creating a fair marketplace for new business owners, however the creation of those laws had a purpose then and still has a purpose today. This does not mean that the law should act as a method of stopping changes from taking place beneficial for the American people.
Even without Obama’s health care plan being the center of this topic doctors have wanted the option of comparing cost without combining their practices. This would allow doctors to negotiate effectively with insurance providers over fees and other matters. The Federal Trade Commission has garnered these attempts as price fixing even in the midst of doctors concerns when negotiating with insurance providers.
In conclusion, Anti trust laws are in place for a reason. However when dealing with health care one must wonder if detractors of the issues concerning keeping prices somewhat level have an underlying concern whether political or otherwise. The consumer is supposed to believe that he or she has sovereignty when making decisions concerning healthcare. However, studies show that this is not the case (Sirgy, Lee, & Yu, 2011) References
Dolfsma, W., & McMaster, R. (2011). Policy Conflicts: Market-Oriented Reform in Health Care. Journal Of Economic Issues (M.E. Sharpe Inc.), 45(2), 309-316. doi:10.2753/JEI0021-3624450207
FTC guide to antitrust laws. (2008). Retrieved from http://www.ftc.gov/bc/antitrust/antitrust_laws.shtm
Jost, T. (2009). Health insurance exchanges: legal issues. Journal Of Law, Medicine & Ethics, 3751-70.
Pear, R. (2009, May 26). Antitrust laws a hurdle to health care overhaul. The New York Times. Retrieved from http://www.nytimes.com/2009/05/27/health/policy/27health.html
Sirgy, M. M., Lee, D., & Yu, G. (2011). Consumer Sovereignty in Healthcare: Fact or Fiction?. Journal Of Business Ethics, 101(3), 459-474. doi:10.1007/s10551-010-0733-5
The affordable health care act. (2012). Retrieved from http://www.healthcare.gov/law/full/index.html

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