StudentShare solutions
Triangle menu

Anti Trust - Essay Example

Not dowloaded yet

Extract of sample
Anti Trust

United States of America and State of Michigan V. Blue Cross Blue Shield of Michigan On October 18, 2010, the Attorney General of US and state of Michigan brought civil anti-trust charges against Blue Cross Blue Shield of Michigan (Blue Cross). Blue Cross is one of the biggest independent licensees of the Blue Shield Association (Robinson, 2003, p.102). Blue Cross is a non-profit organization that administers and provides health care reimbursements to over 4 million members in Michigan. It was alleged in the charges that Blue Cross used most favoured nation (MFN) clause in contracts with its member hospitals to enforce monopolistic advantages. The Attorney General defended that such MFN status will hurt competition by Reducing capability other health insurers’ to compete with Blue Cross The clause will also help Blue Cross to raises prices beyond fair value It will create an entry barrier for new entrants MFN status of Blue Cross will raise the health insurance prices in Michigan Hence, from the above summary of charges of anti-trust against Blue Cross by FTC it can be said that Blue Cross’ MFN status with the hospitals of Michigan are likely to influence anti-competitive effects in the market (Tonn, 2011, pp.1-4). Anti-Trust in Health Care The purpose of anti-trust acts is to encourage a free market place which have competitive environment. These laws are aimed to protect public interest and restrict monopoly practices that adversely affect public in society. The main purpose of such anti-trust law is to encourage best possible allocation of scarce resources and services to public at lowest prices (Ladenburg, 2007, pp.33-35). The federal anti-trust law is based on the following three acts that prohibit all restrictive trade practices and conspiracies in contacts or agreements: The Sherman Act – Under Section 1 of the act, the rule applies to all agreements which may include restrictive trade practices, monopoly practices and boycott of other firms, conspiracy to fix price, separate market territories, harm competition and use of coercive tactics. The Federal trade Commission Act – Under Section 5 of the act, the law applies to all types of actions that use unfair advantages and methods of competition. The Clayton Act – Under Section 7 of the act, it prohibits any such merger and acquisition that has the potential to create a monopoly in the market or substantially reduce in the market. Recommendations to Management From the above discussion regarding the anti-trust act against Blue Cross and lessons learned, it can be said that Blue Cross obviously had the market power to its advantage via MFN clause in contract which will further influence sale of health insurance products and services in Michigan. Making such a contract is discouraged by FTC under the anti-trust act in health care organizations. This is because, from the charges and rebuttals charged by the Attorney General on Blue Cross, it is clear that contracts including ‘MFN’ (Most Favoured Nation) status will fall under the purview of the act because of its very nature to of creating anti-competitive environment. In addition, it is also important to note that the senior management must ensure contract or agreement regarding the ...Show more

Summary

ANTI-TRUST Introduction Health care organization is a type of managed unit that provides health care rendered by professionals and doctors in particular closed network in accordance with HCO’s guidelines. The HCOs reimburse the service provider networks by paying fixed remunerations for each patient…
Author : myrtlenitzsche
Anti Trust essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Anti Trust"
with a personal 20% discount.
Grab the best paper

Related Essays

Econ
Competition on the other hand however, deals with the removal of any restrictions on the trade in order to ensure that the competition between different players in the market works in healthy and constructive manner. Anti-trust laws are therefore formulated in order to ensure that no one in the free markets can actually dominate the market by creating any kind of barriers or restrictions in order to control the market.
6 pages (1500 words) Essay
Microsoft vs. European Union: Anti Competitive Behaviour or Competitive Advantage
On the other side of the argument, intellectual property rights confer on the owner a high degree of autonomy over the subject property (Canetti, 2004). These were the arguments debated in Microsoft v EU (Commission decision relating to a proceeding under Article 82 of the EC Treaty, Case COMP/C 3/37.792 (24 Mar.
8 pages (2000 words) Essay
Sherma- Anti- Trust Act (1890)
The Act was named after Senator John Sherman who proposed it in the congress. Sherman Antitrust Act was enacted amidst the response to the outcry and perception of the public that the economy of United States was dominated by trusts and that the industrial power of the nation was concentrated in too few hands (Koutsoudakis,pg.5).
4 pages (1000 words) Essay
Sherman Anti-Trust Act and Other Anti-Trust Laws
The regulation by the anti-trust law was to curb the upcoming trends in, which several businesses in the US intended to eliminate competition that involved illegal means of businesses fixing prices before assigning specific market domains to different competitors within an industry.
3 pages (750 words) Essay
Evaluating Anit Trust Legisiation
(http://www.bookrags.com/other/business/antitrust-legislation-ebf-01.html, 2006). This paper is aimed at analyzing if the implementation of the anti-trust law is fair and just. Specifically, this paper tackles the highly criticized issue between the Microsoft Corporation and Internet Explorer.
2 pages (500 words) Essay
Evaluating antitrust legislation
The areas covered under this law to ensure fair business practices fall under four categories: agreements between competitors, contractual arrangements between sellers and buyers, the pursuit or maintenance of monopoly power, and mergers. The foundation for the Law was The Sherman Anti-Trust Act of 1890.
2 pages (500 words) Essay
Anti-Trust Laws
In terms of public policy, the FTC has a broad regulatory mandate to reign in organizations judged to have engaged in activities that stifle industry competition, thus eliminating products or services from reaching the marketplace that are overpriced, substandard or lacking in the innovation that true competition would engender
3 pages (750 words) Essay
[Business history] Anti-trust policy and National Business Survey Conference (NBSC) , National Recovery Act (NRA)
ich several businesses in the US intended to eliminate competition that involved illegal means of businesses fixing prices before assigning specific market domains to different competitors within an industry. Even though, the intent reason behind Sherman Act formulation was to
3 pages (750 words) Essay
Business Property and Antitrust Law
The decision-making and operations at Microsoft Corporation have to oblige by the anti-trust law. In this regard, the law prevents the corporation from signing agreements or engaging in practices that can hinder competition in the market.
1 pages (250 words) Essay
Market Strategy and Anti-Trust Regulation
12). The forces of demand and supply presently control the diamond sales in the industry. The De Beers Company had a different market strategy before the year 1990 in comparison to the after years. It used a Market Segment Expansion Strategy before the year
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation