Titus: Repeal Of Antitrust Exemption For Health Insurance Companies Will Increase Competition And Lower Costs

Press Release

Congresswoman Dina Titus of Nevada's Third District voted today in support of legislation that puts consumers first by ending the health insurance industry's 65-year exemption from antitrust laws. The Health Insurance Industry Fair Competition Act, which passed by a strong bipartisan vote of 406 to 19, will increase competition in the health insurance market.

"Competition in a market is critical to lowering costs and providing consumers with real choices," Congresswoman Titus said. "For too long, as health care costs have skyrocketed, the health insurance industry has benefited from an antitrust exemption that has prevented any federal investigation into anti-competitive practices. This legislation is an important step toward bringing down costs for Nevada's families through increased competition and transparency."

Titus highlighted a new report released today by the Center for American Progress that shows Nevada as one of 11 states that has seen or will face a double-digit rate increase for health insurance from WellPoint. In 2009, the Nevada Division of Insurance approved roughly a 13 percent overall rate increase for Anthem Blue Cross and Blue Shield. Click here to read the report.

"Nevada's families have paid the price for a lack of competition in the health insurance sector, seeing premiums go up by double digits last year," Titus added. "With many people in District Three struggling to find a job or save their home from foreclosure, huge increases in health care costs are weighing on budgets that are already stretched to the limit. And with insurance companies like WellPoint hiking up premiums by more than 20 percent in many states, it's clear that higher premiums will become the status quo without our efforts here today."

Since 1945, the McCarran-Ferguson Act has exempted insurance companies from all federal antitrust laws. The Health Insurance Industry Fair Competition Act amends McCarran-Ferguson to repeal the blanket antitrust exemption and provides the Department of Justice and the Federal Trade Commission with the authority to investigate any evidence of possible collusion within the health insurance industry. For decades, leading consumer groups have called for the repeal of the antitrust exemption, with the Consumers Union, Consumer Federation of American, and U.S. PIRG strongly supporting this legislation.

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