One of These Two Actions is Illegal
Which of the following two scenarios is illegal under Federal antitrust law:
- Half a dozen family physicians (of about 50 on a given hospital staff) get together and decide to set all their fees for medical services to the Medicare allowed amount plus $10.
- Two large insurance companies (together covering 80% of the market in a given municipal area) somehow between them manage to pay between 88% and 95% of the amounts allowed by Medicare.
Perhaps a better question might be, "Which action is more anti-competitive and more detrimental to commerce and society as a whole?" Ah, but when has the law ever bothered itself with common sense?