[Congressional Record Volume 155, Number 132 (Thursday, September 17, 2009)]
[Senate]
[Page S9556]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY (for himself, Mr. Feingold, Ms. Cantwell, Mr. 
        Durbin, Mr. Schumer, and Mrs. Feinstein):
  S. 1681. A bill to ensure that health insurance issuers and medical 
malpractice insurance issuers cannot engage in price fixing, bid 
rigging, or market allocations to the detriment of competition and 
consumers; to the Committee on the Judiciary.
  Mr. LEAHY. Mr. President, our Nation's antitrust laws exist to 
protect consumers. These laws promote competition, which ensures that 
consumers will pay lower prices, and receive more choices of higher 
quality products. The vast majority of the companies doing business in 
the U.S. are subject to the Federal antitrust laws.
  A few industries have used their influence to obtain a special, 
statutory exemption from the antitrust laws, and the insurance industry 
is one of them. In the markets for health insurance and medical 
malpractice insurance, patients and doctors are paying the price, as 
costs continue to increase at an alarming rate. As the insurance 
industry prospers behind its exemption, patients and small businesses 
suffer. I am pleased to introduce today the Health Insurance Industry 
Antitrust Enforcement Act of 2009, which will repeal the antitrust 
exemption for health insurance and medical malpractice insurance 
providers.
  The health care industry is the subject of a great deal of debate. 
There are many proposals to bring competition to health insurance 
providers. While we are debating these solutions, we should not lose 
sight of the fact that the health insurance industry currently does not 
have to play by the same, good-competition rules as other industries. 
That is wrong, and this legislation corrects it.
  The lack of affordable health insurance plagues families throughout 
our country, and the rising prices that hospitals and doctors pay for 
medical malpractice insurance drains resources that could otherwise be 
used to improve patient care. Antitrust oversight in these industries 
will provide consumers with the confidence that insurance companies are 
operating in a competitive marketplace.
  There is simply no justification for health insurance and medical 
malpractice insurance companies to be exempt from Federal laws 
prohibiting price fixing. Subjecting health and medical malpractice 
insurance providers to the antitrust laws will enable customers to feel 
confident that the price they are being quoted is the product of a fair 
marketplace. This bill will prohibit the most egregious anticompetitive 
conduct--price fixing, bid rigging and market allocations--conduct that 
harms consumers and drives up health care costs.
  In the 110th Congress, I introduced a much broader repeal of the 
McCarran-Ferguson Act with Senator Lott. While Congress did not reach 
consensus on that legislation, surely in this environment of rising 
health care costs, we can agree on this more narrowly tailored repeal. 
Insurers should not object to being subject to the same antitrust laws 
as everyone else. If they are operating in an appropriate way, they 
should have nothing to fear. American families, doctors and hospitals 
rely on insurance. It is important to ensure that the prices they pay 
for this insurance are established in a fair and competitive way.
  I look forward to repealing the antitrust exemption in the health 
insurance and medical malpractice insurance industries.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1681

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Health Insurance Industry 
     Antitrust Enforcement Act of 2009''.

     SEC. 2. PURPOSE.

       It is the purpose of this Act to ensure that health 
     insurance issuers and medical malpractice insurance issuers 
     cannot engage in price fixing, bid rigging, or market 
     allocations to the detriment of competition and consumers.

     SEC. 3. PROHIBITION OF ANTI-COMPETITIVE ACTIVITIES.

       Notwithstanding any other provision of law, nothing in the 
     Act of March 9, 1945 (15 U.S.C. 1011 et seq., commonly known 
     as the ``McCarran-Ferguson Act'') shall be construed to 
     permit health insurance issuers (as defined in section 2791 
     of the Public Health Service Act (42 U.S.C. 300gg-91) or 
     issuers of medical malpractice insurance to engage in any 
     form of price fixing, bid rigging, or market allocations in 
     connection with the conduct of the business of providing 
     health insurance coverage (as defined in such section) or 
     coverage for medical malpractice claims or actions.

     SEC. 4. APPLICATION TO ACTIVITIES OF STATE COMMISSIONS OF 
                   INSURANCE AND OTHER STATE INSURANCE REGULATORY 
                   BODIES.

       Nothing in this Act shall apply to the information 
     gathering and rate setting activities of any State commission 
     of insurance, or any other State regulatory entity with 
     authority to set insurance rates.
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