Are there any government agencies that regulate how health insurance companies or plans operate?
Health insurance is recognized at every level of government as involving an important public interest. At the Federal level, there are a number of important statutes applicable to health care insurance. The McCarren-Ferguson Act provides that even though the insuring or provision of health care may be national in scope the regulation of insurance is left to the states. Likewise, the Health Maintenance Organization (HMO) Act provides that HMO’s or health service plans are regulated by the states. As a result of these two Federal statutes, much of the task of health insurance regulation is left to the states. Regulatory practices vary from state to state. For instance, in California health insurers are regulated by the Department of Insurance and HMO’s and health service plans are regulated by the Department of Corporations. In addition, the Federal Old Age, Survivors and Disability Insurance Benefits laws (Medicare) provide that the Health Care Financing Administration (HCFA) of the Fed
