House votes to strip insurers' antitrust exemption

The House voted Wednesday - by a broad bipartisan majority of 406-19 - to repeal health insurers' exemption from federal antitrust laws, the Associated Press/Atlanta Journal Constitution reports. Despite siding with Democrats, "Republican lawmakers complained … that the legislation passed Wednesday was largely symbolic and would have little real impact since states already regulate health insurers." Democrats have argued that repealing the exemption would make the industry more competitive (Werner 2/24).

National Underwriter, an insurance trade journal, adds, "The bill would repeal the antitrust exemption afforded the business of health insurance - but not the business of medical malpractice insurance - by the McCarran-Ferguson Act." An insurance industry trade group, America's Health Insurance Plans, said the repeal " is likely to do more harm than good" (Postal, 2/24).

The (Fort Collins) Coloradoan reports, "Rather than spending extensive time criticizing the bill ... Republicans spent much of their time arguing that lawsuit reform would do more to lower costs than repealing the antitrust exemption" (Moore, 4/24). 

Kaiser Health News has a story explaining the exemption.