House Votes To Strip Insurers' Antitrust Exemption
Feb 24, 2010 - Kaiser Health News
The House voted Wednesday – by a broad bipartisan majority of 406-19 – to
repeal health insurers' exemption from federal antitrust laws, the Associated
Press/Atlanta Journal Constitution reports. Despite siding with Democrats,
"Republican lawmakers complained c that the legislation passed Wednesday was
largely symbolic and would have little real impact since states already regulate
health insurers." Democrats have argued that repealing the exemption would make
the industry more competitive (Werner 2/24).
USA Today: The bill "would overturn provisions of a 1945
law that gave the insurance industry broad exemptions from federal regulation of
monopolies. House Democrats included the proposal in their now-stalled $1
trillion health care bill. The Senate did not." Although one of the bill's
supporters, Rep. Betsy Markey, D-Colo., said the measure would help prevent
insurance companies from conspiring "to fix prices, divide territories and never
be punished for it," the nonpartisan Congressional Budget Office said it was not
clear that had been happening. CBO wrote in a report last year that "the
provision 'would apply to a small number of offenders.' In another report, the
CBO predicts that 'implementing those provisions would have no significant
effects on either the federal budget or the premiums that private insurers
charged for health insurance.' In a statement, Karen Ignagni, president of the
insurance industry group America's Health Insurance Plans, said the bill
attempts to 'solve a problem that doesn't exist'" (Fritze, 2/24).
Roll
Call: The vote "split the House Republican leadership: Minority Leader John
Boehner (Ohio) and a small band of conservatives voted to preserve the
exemption, while Minority Whip Eric Cantor (Va.) and the bulk of the Republican
Conference backed the measure. Democrats unanimously supported the measure, with
a parade of endangered freshmen coming to the floor to extol the measure as a
common-sense way to increase competition and fight higher health insurance
rates. c And some Republicans who opposed the measure, including Rep. Scott
Garrett (N.J.), warned it could raise premiums instead of lowering them because
it would expose insurance companies to the costs of antitrust lawsuits" (Dennis,
2/24).
National
Underwriter, an insurance trade journal, adds, "The bill would repeal the
antitrust exemption afforded the business of health insurance – but not the
business of medical malpractice insurance – by the McCarran-Ferguson Act." An
insurance industry trade group, America's Health Insurance Plans, said the
repeal " is likely to do more harm than good" (Postal, 2/24).
The
(Fort Collins) Coloradoan reports, "Rather than spending extensive time
criticizing the bill ... Republicans spent much of their time arguing that
lawsuit reform would do more to lower costs than repealing the antitrust
exemption" (Moore, 4/24).
Kaiser Health News has a story explaining the exemption.
This is part of Kaiser Health News' Daily Report - a summary
of health policy coverage from more than 300 news organizations. The full
summary of the day's news can be found here and
you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters
and correspondents file original stories each day, which you can find on our home page.