PIA National is participating in an industry coalition which is working to defeat an amendment to the Senate healthcare reform bill offered by Sen. Patrick Leahy (D-Vt.). The amendment would repeal the McCarran-Ferguson Act antitrust exemption for health and medical malpractice insurers. It was offered as an amendment to H.R. 3590, the Patient Protection and Affordable Care Act bill. It is cosponsored by 18 Senators.

As drafted, the Leahy proposal would apply federal law expressly outlawing price fixing, bid rigging and market allocations to health and medical malpractice insurers. This, despite the fact that the limited antitrust exemptions afforded under McCarran-Ferguson do not permit these activities, which are already illegal.

“Under the regulatory regime that arose from the McCarran-Ferguson Act, more than 5,000 property/casualty insurers across the country are subject to a comprehensive and pervasive regimen of state-based regulation and antitrust enforcement, including health and medical malpractice insurance,” said a letter to Congress signed by PIA and coalition partners. “States regulate virtually every aspect of insurance, including licensing, market conduct, financial solvency, policy language and underwriting standards.  Thus, federal action to repeal or amend the McCarran-Ferguson Act for these or any line of insurance is unnecessary to pursue any allegations of anti-competitive behavior.”

PIA National arranged a meeting with Sen. Jon Tester (D-Mont.) for this week to discuss our opposition to Sen. Leahy’s proposal. Other coalition members will accompany PIA Director of Federal Affairs Mike Becker to the meeting.

Text of Sen. Leahy’s amendment (S. 2795)

December 9, 2009