House Repeals Health Insurance Company Anti-Trust Exemption
March 1, 2010 - The House of Representatives voted overwhelmingly (406-19) on Feb. 24 to eliminate the federal anti-trust exemption for health insurers provided under the McCarren-Ferguson Act. In a statement released by bill sponsor Rep. Tom Perriello, D-Va., the legislator stated, "Today we sent a simple message: health insurance companies must compete for business like everyone else. 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."
Insurance companies maintain that the measure is misguided and they are already sufficiently regulated. The Property Casualty Insurers of American and the American Insurance Association warned that "changing the anti-trust rules under McCarran upsets the careful balance of regulatory and antirust policy." The groups point to the findings of the Congressional Research Services that repeal could lead to less competition in the insurance marketplace.
The bill now moves to the Senate where its chances for passage are uncertain.