Washington, D.C. - Today, with support from Rep. Betty Sutton (D-OH), the House passed legislation to ensure that American consumers have access to more health insurance choices, improved quality and lower costs. H.R. 4626, the Health Insurance Industry Fair Competition Act, will repeal the special anti-trust exemption for health insurance companies, requiring them to compete fairly and adhere to the same anti-trust laws as other companies. According to the Consumer Federation of America, repealing these antitrust exemptions will save consumers more than $40 billion in insurance premiums. The House passed this measure by a 406-19 margin.

"For far too long the health insurance industry has been exempted from playing by the rules that most other American businesses must live by," Rep. Sutton said. "The result has been excessive consolidation in the health insurance industry and insurance companies taking advantage of honest, ordinary Americans. The families that I proudly represent have the right to be confident that the cost of their insurance and the actions of their health insurance providers reflect competitive market conditions, not collusion. This bill is a critical step to ensure competition in the insurance industry and provide access to quality, affordable health care for all Americans."

For 65 years, the health insurance industry has been legally exempt from anti-trust laws, and the federal government was banned from even investigating evidence of possible collusion. In the last 14 years alone, there have been 400 mergers among health insurers and now 94 percent of all health insurance markets are "highly concentrated," which means consumers have little or no choice between insurance providers. While this concentrated market has enjoyed its exemption from anti-trust regulation, health insurance premiums have doubled during the past decade.

Under this legislation, health insurers that were previously exempt from anti-trust laws will now bear legal responsibility for price fixing, colluding with each other, and setting their own markets without fear of being investigated. Such unfair and egregious practices have been outlawed in other industries for decades. 

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

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