Insurers' Antitrust Exemption Repeal Bill Due For House Introduction

NU Online News Service, Feb.4, 11:26 a.m. EST

WASHINGTON–Legislation will be introduced in the House tomorrow repealing the antitrust exemption afforded health and medical liability insurers through the McCarran-Ferguson Act.

The bill that will be introduced will not include a provision contained in an earlier version providing express enforcement authority to the Federal Trade Commission with respect to "unfair methods of competition" for all types of insurance, according to insurance industry lobbyists.

In early December the House passed its version of health care reform legislation, including much more far-reaching language on antitrust repeal, which is opposed by all segments of the insurance industry.

The latest legislation on antitrust repeal will be introduced by Rep. Tom Perriello, D-Va., and Rep. Betsy Markey, D-Colo., at a press conference tomorrow in anticipation of a House vote next week.

In announcing their plans, the two members said, "It's time for Washington to decide whether we stand with patients or profiteering, whether we believe in market competition or collusion between politicians and insurance monopolies."

They remarked in a statement that, in the last 14 years, "there have been 400 mergers among health care insurers so that 95 percent of health insurance markets are 'highly concentrated,' which means consumers have little or no choice between insurers."

"This non-competitive market has led to health insurance premiums having more than doubled in the past decade," the statement said.

In a message to its members asking them to call their congressmen to oppose the bill, the National Association of Professional Insurance Agents said it is unclear whether the bill will have the votes to pass, "even if it comes up in the House floor. In fact, some industry lobbyists think that a vote may not be taken if there aren't sufficient votes to pass it."