Sen. Patrick Leahy (D-Vt.) filed an amendment this week to the pending Wall Street reform legislation to repeal the health insurance industry's exemption from federal antitrust laws.
Leahy had introduced legislation in September to repeal the exemption and also sought to include the repeal in health insurance reform legislation enacted earlier this year.
"The recent economic crisis showed all of us that corporations do not act responsibly without adequate oversight," he said. "It is important to remember that there is another industry that is not required even to play by the same rules of competition as everyone else. Benefiting from a six-decade-old special interest exemption, the health insurance industry is not subject to the nation's antitrust laws. We can surely agree that health insurers should not be allowed to collude to fix prices and allocate markets."
The Health Insurance Industry Antitrust Enforcement Act would overturn the long-held exemption from federal antitrust laws enjoyed by health insurers. The House of Representatives approved a companion measure earlier this year, and President Barack Obama and the administration strongly support its enactment.
In March, Leahy and 22 senators sent a letter to Senate Majority Leader Harry Reid (D-Nev.) urging him to set a vote on the measure.
"Large corporate interests impact the daily lives of hardworking Americans and must be regulated," Leahy said. "When any large corporation acts irresponsibly, whether it is a financial institution or a health insurance company, Americans pay the price. This amendment will repeal the health insurers' antitrust exemption and ensure that they follow basic rules of fair competition. Competition ensures that consumers will pay lower prices and receive more choices."
Leahy is chairman of the Senate Judiciary Committee, which held a hearing on repealing the exemption in October. Reid and the Assistant Attorney General for the Antitrust Division at the Department of Justice, Christine Varney, both testified at the hearing about the benefits of repealing the exemption.
The Health Insurance Industry Antitrust Enforcement Act is supported by the American Hospital Association.