The House of Representatives has passed H.R. 4626, the Health Insurance Industry Fair Competition Act, a bill to restore the application of federal antitrust laws to the health insurance industry. The bill passed with bipartisan support 406 to 19. The legislation was introduced by Congresspersons Tom Perriello (D-VA) and Betsy Markey (D-CO), with 64 other co-sponsors.

The text of the bill states that, in amending the McCarran-Ferguson Act of 1945, "Nothing contained in this Act shall modify, impair, or supersede the operation of any of the antitrust laws with respect to the business of health insurance." The McCarran-Ferguson Act of 1945 allows state law to regulate the insurance business without federal government pre-emption.

"I'm proud of my colleagues on both sides of the aisle for standing up for a common sense bill," Rep. Markey said in a press release after the vote. "Long ago, the insurance industry got a special deal from Washington. Big health insurance companies could conspire with each other to fix prices, divide territories and never be punished for it. It's wrong, and this bill fixes it once and for all."

"Today, Washington finally took a stand for patients, for the free market, and for common-sense, bipartisan principles of fairness. Today, we sent a simple message: health insurance companies must compete for business like everyone else," Rep. Perriello stated. "Working and middle-class families are sick and tired of getting nickel and dimed by these companies while they rack up billions in profit and enjoy their monopoly protection. I applaud my colleagues for standing on the side of consumers over the health insurance companies."

According to Rep. Perriello, under this legislation, health insurers will not have liability protection for antitrust practices including price fixing, dividing up market territories, or bid rigging. Rep. Perriello notes the concerns in recent years over the concentration within the health insurance market. Perriello also stated the repeal has the support of organizations including the American Hospital Association, the American Dental Association, the American Academy of Pediatrics, the National Association of Attorneys General, and the National Farmers Union, and others.

On Tuesday, the White House had sent over to the House a Statement of Administration Policy concerning the bill: "The Administration strongly supports House passage of H.R. 4626. The repeal of the antitrust exemption in the McCarran-Ferguson Act as it applies to the health insurance industry would give American families and businesses, big and small, more control over their own health care choices by promoting greater insurance competition. The repeal also will outlaw existing, anti-competitive health insurance practices like price fixing, bid rigging, and market allocation that drive up costs for all Americans. Health insurance reform should be built on a strong commitment to competition in all health care markets, including health insurance. This bill will benefit the American health care consumer by ensuring that competition has a prominent role in reforming health insurance markets throughout the Nation."

Get the details:

Representative Markey's remarks:
http://betsymarkey.house.gov/News/DocumentSingle.aspx?DocumentID=173417

Rep. Perriello's remarks: http://perriello.house.gov/index.cfm?sectionid=25§iontree=6,25&itemid=480

The Statement of Administration Policy: http://www.whitehouse.gov/omb/assets/sap_111/saphr4626r_20100223.pdf

More Industry Headlines