NU Online News Service, Jan.28, 12:13 p.m.EST

WASHINGTON–House Democrats are planning a vote nextweek on legislation that would repeal the McCarran-Ferguson Actanti-trust laws exemption for health care and medical malpracticeinsurers.

The bill would also give the Federal Trade Commission theauthority to prepare studies and reports on the entire insuranceindustry.

However, given the united insurance industry opposition to thelegislation, there is some thought that supporters of the bill maynot be able to win House passage, and withdraw the bill in itspresent form, some insurance lobbyists suggested.

According to industry representatives and congressional staff,the legislation will not include language protecting joint industryactivities, for example, compilation of historic loss data.

This provision was added in committee to previous legislationpassed by the House last year in connection with health care reformlegislation. Such a provision is in the version of health carereform legislation passed by the House last year.

The latest bill has the support of the House leadership,including Speaker Nancy Pelosi, D-Calif., according to industry andcongressional sources.

The bill is part of the effort by House Democrats to enactpieces of the health care reform legislation in the face offlagging political support for an omnibus health care reformmeasure.

The chief lawmakers supporting the latest bill are Rep. PeteDeFazio, D-0re., and Rep. Louise Slaughter, D-N.Y. Another backeris Rep. John Garamendi, D-Calif., a new member of Congress andformer insurance commissioner for his state.

Blain Rethmeier, a spokesman for the American InsuranceAssociation, called the House measure, a "solution in search of aproblem."

He noted that insurers are subject to comprehensive regulationacross the country, including rates and said, "Simply put, thiswould disrupt the industry's business environment and createsubstantial litigation and uncertainty."

Nicole Allen, vice president of communications for the Councilof Insurance Agents and Brokers, said that if the bill is forced onthe House floor, "it is reminiscent of the cap-and-trade vote lastyear."

Ms. Allen said rank-and-file House Democrats "may be asked towalk the plank on a measure that won't be signed into law, andwouldn't accomplish its stated aims even if it was accepted by theSenate."

"For those of us who philosophically support the OptionalFederal Charter, we're long on record as saying we wouldcommensurately accept changes in the McCarran-Ferguson Act," Ms.Allen said.

"But this is all of the downside with none of the regulatoryupside," she explained.

"Thus, we would expect to see a very united insurance industry,and any such potential vote would be a major, not minor, interestto all of us," she said.

Jimi Grande, senior vice president of federal and politicalaffairs for the National Association of Mutual Insurance Companies,added that, "Repealing the limited exemption would be a misguideddecision, and would ultimately do more harm than good."

He explained that, "Many members of Congress have a falseperception of the exemption, which was enacted to fostercompetition in the marketplace. We would simply ask those memberswith concerns about the McCarran-Ferguson provision to lookcarefully at what it does and what it doesn't do."