House of Representatives approves insurance exemption repeal

Washington鈥擳he U.S. House of Representatives Feb. 24 overwhelmingly passed ADA-backed legislation to repeal the 65-year federal antitrust exemption for health insurers. The 406-19 vote gives new life to legislation to repeal the McCarran-Ferguson Act exemption for health insurance companies.

Repeal is a long-standing priority of the Association, and ADA leaders encouraged Association members and Congress to support the repeal.

“The ADA believes that health care consumers are adversely affected by the McCarran-Ferguson Act exemption from federal antitrust laws,” ADA President Ron Tankersley said before the House vote on legislation offered by two freshmen House members. Reps. Betsy Markey (D-Colo.) and Tom Perriello (D-Va.) said their bill, H.R. 4626, would “end special treatment for the insurance industry.”

The legislation now moves to the Senate. While the House-passed health care reform legislation contained language to repeal the McCarran-Ferguson Act exemption, that legislation is bogged down in the ongoing national health policy debate. At the behest of Democratic leadership, Reps. Markey and Perriello revived the antitrust exemption as a stand-alone measure.

Under the bill, health insurers would no longer be protected from liability for price fixing, dividing up market territories, or bid-rigging.