Repeal Vote Nears On Health Insurers' Antitrust Exemption

NU Online News Service, Dec.1, 4:04 p.m. EST

WASHINGTON–Sen. Patrick Leahy, D-Vt., said an amendment to repeal the antitrust exemption that exists for health and medical malpractice insurers will be offered during action on proposed health care reform legislation.

It is unclear when a vote will be held on whether to eliminate the antitrust protection offered those insurers under the McCarran-Ferguson Act.

The bill with the amendment to eliminate the antitrust exemption, S. 1681, was introduced in September by Sen. Leahy and Sen. Harry Reid, D-Nev., Senate majority leader. It has 17 co-sponsors, all Democrats except for Sen. Joe Lieberman, Ind.-Conn.

"This amendment will prohibit the most egregious anticompetitive conduct–price-fixing, bid-rigging and market allocations–conduct that harms consumers, raises health care costs and for which there is no justification," Sen. Leahy said.

"Subjecting health and medical malpractice insurance providers to the antitrust laws will enable customers to feel confident that the price they are being quoted is the product of a fair marketplace," he added.

The provision is a simple repeal of the antitrust protection.

House health care reform legislation contains provisions that are more extensive, including language that provides express enforcement authority to the Federal Trade Commission with respect to "unfair methods of competition," according to officials of the American Insurance Association.

That would include oversight of property and casualty and life insurance products.

Regarding the limited Senate bill, Sen. Leahy said it is supported by the Consumer Federation of America, the American Hospital Association, the American Academy of Pediatrics and the American Dental Association. He said the attorneys general of 10 states sent him a letter in November indicating strong support for the measure.

"The lack of affordable health insurance plagues families throughout our country, and this amendment is a first step toward ensuring that health insurers and medical malpractice insurers are subject to fair competition," Sen. Leahy said.

It is unclear when the amendment will come up for debate. Debate on the health care bill began Nov. 30. Sen. Reid said Monday in starting debate on the bill that he will do everything he can to ensure its passage through the Senate by Christmas.

He said the Senate could face late-night and full-weekend sessions to pass the overhaul. Reid spokesman Rodell Mollineau followed up by saying that Senate Democrats are "100 percent committed to getting this done by Christmas, no ifs, ands or buts."