Congresswoman Laura Richardson Applauds Passage Of The Health Insurance Industry Fair Competition Act

Press Release

Congresswoman Laura Richardson acted to bring health care costs down and to increase competition between insurance providers by voting for the Health Insurance Industry Fair Competition Act. This act, which passed the House of Representatives yesterday and now moves to the Senate for approval, subjects health insurance companies to the same anti-trust laws as other companies, creating a more competitive marketplace.
"Because of this Act, people will have more choices of insurance plans to choose from and the price they pay will be based on fair market rates," Congresswoman Richardson said. "This is good for consumers, because it makes health insurance affordable for them, and it is good for the industry, because it will create new job opportunities for workers and open markets for new and expanding insurance providers."

The Act overturns a 65-year-old exemption on anti-trust laws. Because of that exemption, in the last 14 years there have been 400 mergers among health insurers and now 94 percent of all insurance markets are "highly concentrated" -- meaning consumers have little or no choice between insurance providers.

"In the 37th District, 22.5 percent of those under 65 are uninsured, nearly 150,000 people. This Act will provide thousands of them the ability to either privately purchase insurance or for their employers to be able to offer them affordable options," Congresswoman Richardson added. "This legislation will improve the health of millions of Americans, while at the same time strengthening the competition-based foundation of our economy."

Congresswoman Richardson is a Democrat from California's 37th Congressional District. She is a member of the House Committees on Transportation & Infrastructure and Homeland Security. Her district includes Long Beach, Compton, Carson, Watts, Willowbrook and Signal Hill.

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