Congressman Mike Thompson Votes to End Health Insurers' Exemption from Federal Antitrust Laws

California Rep. Mike Thompson recently voted to advance a bill that would subject health insurance companies to federal antitrust laws, aiming to curb high health insurance costs and promote competition in the industry. The Health Insurance Industry Fair Competition Act, H.R. 4626, would end the exemption of health insurers from federal antitrust laws, holding them accountable for anti-competitive practices such as price fixing and unfair division of market territories. This move comes as health insurers in California, such as Anthem Blue Cross Blue Shield, have recently implemented rate hikes of up to 39 percent, highlighting the need for fair regulation of the health insurance market.

Key Takeaways:

• The Health Insurance Industry Fair Competition Act, H.R. 4626, aims to end the exemption of health insurers from federal antitrust laws, holding them accountable for anti-competitive practices.
• Since 1945, health insurance companies have been exempt from all federal antitrust laws, resulting in more than 400 mergers among health insurers in the past 14 years.
• According to a recent study by the American Medical Association, in 94 percent of U.S. metropolitan areas, the health insurance markets are now "highly concentrated" and lack meaningful competition.
• The bill would allow the U.S. Department of Justice and the Federal Trade Commission to investigate any suspicion of collusion and hold insurance companies accountable.
• The legislation does not change state-based systems of regulation or taxation, instead holding health insurers subject to both federal antitrust law and state regulations.
• The bill now heads to the Senate for consideration.

Statistics:

• Since 1945, health insurance companies have been exempt from all federal antitrust laws.
• In the past 14 years, there have been more than 400 mergers among health insurers.
• In 94 percent of U.S. metropolitan areas, health insurance markets are now "highly concentrated" and lack meaningful competition (American Medical Association study).
• Anthem Blue Cross Blue Shield has implemented rate hikes of up to 39 percent in California.

Sources:

• "Health Insurance Industry Fair Competition Act" (House Resolution 4626)
• American Medical Association study
• Congressman Mike Thompson's office