Rep. Eshoo Votes to Repeal Health Insurance Antitrust Exemption

Washington, D.C. - Representative Anna G. Eshoo (D-Palo Alto) voted today to require the health insurance industry to compete under the same antitrust laws as other U.S. industries. H.R. 4626, the Health Insurance Industry Fair Competition Act repeals the industry's 65 year-old antitrust exemption which has prevented the federal government from investigating price fixing, collusion, or the sabotage of competitors-activities which are illegal in other industries.

"Monopolies, price-gouging, and extortionary practices are unacceptable in any other business, yet they have become synonymous with the health insurance industry," Rep. Eshoo said. "Today, the health insurance industry and Major League Baseball are the only two American industries allowed to operate with an antitrust exemption. This bill will finally require the insurers to play by the same rules as everyone else. It is an important step on the road to reform."

In the last 14 years alone, the antitrust exemption has allowed health insurers to engage in over 400 mergers. Currently, 94% of all insurance markets are highly concentrated, meaning consumers in these areas have little or no choice between insurance providers.

"Competition drives our economy," Rep. Eshoo said. "By repealing the antitrust exemption, this bill will promote much needed competition in the health insurance industry. It will also lower the costs of insurance, while raising the quality of coverage and choices."

The legislation is overwhelmingly supported by health and consumer groups, including the American Hospital Association, the American Nurses Association, the American Academy of Pediatrics, the Consumers Union, the Consumer Federation of America, the Center for Justice and Democracy, and U.S. PIRG.

The Health Insurance Industry Fair Competition Act passed by a bipartisan vote of 406-19.

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