My understanding of the Robinson Patman act is that it specifically was designed to exclude such things as medical and legal services. The Robinson Patman act was passed by the U.S. Congress in 1936 to supplement the Clayton Antitrust Act . The act forbade any person or firm engaged in interstate commerce to discriminate in price to different purchasers of the same commodity when the effect would be to lessen competition or to create a monopoly. The purpose of the act was to protect independent retailers from chain-store competition, but it was also strongly supported by wholesalers eager to prevent large chain stores from buying directly from the manufacturers for lower prices.
There are lots of citations on the web, but a law library or attorney well versed in anti trust law would be a better source.
Terri Hyle
From: "Paul Double" <[EMAIL PROTECTED]> To: "Online Democracy" <[EMAIL PROTECTED]> Subject: FW: [Winona] It's the Insurance Companies Date: Sun, 26 Oct 2003 20:16:01 -0600
There is a great article in the Sunday October 26 2003 by Dr. Frank Bures on
page 4C. I don't know if he has been in the background enjoying our
discussion but the article titled "Medical coverage is really quite
arbitrary" is right on target for our discussion. He discusses discounts and
the insurance industry.
I know earlier I had posted the AMA testimony to Federal Trade Commission
which also illustrates the concerns of many providers and more important the
danger or increasing power of insurance companies.
I would however take issue with one point in the article. The
Robinson-Patman Act prohibits "for profit" providers from price
discrimination between "Business" competitors. "Third Party Administrators"
in Single Payer Systems such as administered (Health Reimbursement
Arrangements) HRA's are competitors of the insurance industry and as such
must receive similar discounts or the providers will be in trouble with the
Justice Department and the FTC not to mention state laws which may be more
encompassing. While some providers may attempt to circumvent the law by
saying that it applies only to goods not services I would encourage them to
go to the FTC site as services are being included. It should also be noted
that the FTC is addressing networks in relation to the Sherman Anti-Trust
Act and restraint of trade issues between out of network providers and those
in network.
Some FTC documents indicate that when Non-Profit Providers collaborate with For-Profit Providers the non-profits may be at risk on loosing their non-profit exemption from Robinson-Patman. This, in my opinion, would be great for consumers as the special discounts that non-profits receive on prescription drugs would be offered to your local drug stores.
I am amazed by the number of consumers (patients) who think they need
insurance because they remember the artificial invoice they receive first
for services rendered verses the final "real invoice" after all the write
offs and discounts are applied. Amazed also at the number of providers who
only hurt themselves by their billing/pricing policies but many are waking
up that they must speak out, offer cash customers the same prices they offer
insurance companies, support Third Party Administrators as Single Payer
Systems or they will always be under the thumb of their master "the
insurance industry".
What is sad and scary is: Insurance controls what employers and employees shall pay Insurance controls what is covered by their plan and where you must go to be served Insurance controls what the provider will receive on the threat that they might build their own clinic The President thinks this industry should be a part of the solution - Hell they are the problem!
Paul Double
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