Taking Aim At Insurance Companies

Rep. John Conyers has set his sights on the insurance industry, big time.

Both the House and Senate today have introduced identical language to reduce insurance prices for consumers. This legislation would extend antitrust enforcement over health insurers and medical malpractice insurance issuers, which currently enjoy broad antitrust immunity under the McCarran-Ferguson Act. This immunity can serve as a shield for activities that might otherwise violate federal law.

"This legislation would specifically prohibit price fixing, bid rigging, and market allocation in the health insurance industry," said Conyers. "These pernicious practices are detrimental to competition and result in higher prices for consumers. Conduct that is unlawful throughout the country should not be allowed for insurance companies under antitrust exemption. The House Judiciary Committee held extensive hearings on the effects of the insurance industry’s antitrust exemption throughout the 1980s and early 1990s. It became clear then that policyholders and the economy in general would benefit from eliminating this exemption.

"The legislation we introduced today is intended to root out unlawful activity in an industry grown complacent by decades of protection from antitrust oversight. In doing so, we aim to make health insurance more affordable to more Americans. I want to thank my friend Senator Leahy for his leadership on the bill and for working with the House on this joint introduction."

"The average American family already pays an extra $1,100 in premiums every year for a broken system that supports 46 million uninsured Americans," said Johnson. "The Enforcement Act is long overdue. I am concerned that the shield this industry enjoys have resulted in market consolidation and higher premiums for the people of my district. As millions of Americans continue to go uninsured, we cannot continue to support the insurance companies by providing them with legal cover for anticompetitive actions."

Imagine that. Insurance companies, some of which dominate as much at 80% of a single state's insurance market, are currently exempt from anti-trust legislation and have been since the end of WW II.

Regardless of the state of Obamacare, this legislation has to pass and I strongly believe it will. Republicans dare not protect an insurance company's right to have a monopoly.