Democrats Introduce Bill To Repeal Health Insurance Anti-Trust Exemption
Freshmen Lead Charge to Bring Competition into Health Care Market
WASHINGTON—Congressman Tom Perriello and Congresswoman Betsy Markey will introduce legislation this week that will repeal the special anti-trust exemption for health insurance companies and medical malpractice insurance companies. The measure would end special treatment for the insurance industry that allows them to fix prices, collude with each other, and set their own markets without fear of being investigated. Removing this exemption has been a common priority of these two freshmen lawmakers, though they voted differently on the initial House health care reform bill.
“It’s time for Washington to decide whether we stand with patients or profiteering, whether we believe in market competition or a collusion between politicians and insurance monopolies. It’s time to end the monopoly protections that Washington has protected for decades as prices skyrocketed. It’s time for a simple, clean bill – no carve-outs or special deals – that forces insurance companies to compete. It’s time to put patients and cost relief first,” said Rep. Perriello. “Americans deserve to know who stands with them against the price gouging of middle-class and working-class folks. Today, we do.”
“I’ve heard from tens of thousands of Coloradans across my district, and though people’s opinions may vary, the common message is clear: the current health care system is crushing our families and businesses,” said Rep. Markey. “Support for removing this unfair exemption cuts across party lines, and is a major piece of common ground that I’ve been working toward in our country’s health care debate. This is about bringing sorely-needed competition back into an industry that has for too long wielded monopoly control over hard-working American families.”
Under the Perriello-Markey bill, health insurers will no longer be protected from liability for price fixing, dividing up market territories, or bid rigging. In the last 14 years, there have been 400 mergers among health care insurers so that 95% of health insurance markets are “highly concentrated,” which means consumers have little or no choice between insurers. This non-competitive market has played a role in health insurance premiums having more than doubled in the past decade.
A measure similar to the Perriello-Markey bill passed earlier in a House committee with bipartisan support.
More like this, please. I have no idea why health insurance companies enjoy an anti-trust exemption in the first place. The anti-trust exemption repeal was in every version of the Democrat’s health care bill except the Senate Finance Committee bill and the final Senate bill. It was removed because of Ben Nelson. How do you think Castle will vote on this one?
Tags: Heath Care Reform
Introducing legislation is nice, but I want to see passage of legislation.
Let’s see the Senate version…
Markey is the Democratic hero who knocked off Marilyn Manson, I mean Musgrave.
This was introduced last year, Insurance Industry Competition Act of 2009. I can’t tell what happened to it, but it looks like it got lost in committee. So good luck on it this time around.
http://www.opencongress.org/bill/111-h1583/show
“Use Senate reconciliation and expand Medicare via the Senate’s buy-in provisions. The CBO has already signed off on this as a means of saving money.
More importantly, if more Americans can do a buy-in with Medicare, it creates more cost control (because there’s a genuine “public option” competitor).
It also helps to solve the problems of pre-existing conditions, because Medicare does not deny coverage on this basis.
Allowing a Medicare buy-in to Americans under 65 would give people a genuine alternative to private insurance and thereby render the pre-existing question moot.
It would also lower Medicare costs by expanding the risk pool of patients (the great bulk of medical expenses are accounted for by a small number of people, mostly the elderly, requiring very expensive treatment).
And it would substantially enhance the global competitiveness of American corporations. After all, in what other country in the world is health care a marginal cost of production for business?” – Roosevelt Institute Marshall Auerback