Cohen Votes to Hold Health Insurance Companies More Acountable for Premium Increases
October 21, 2009
The House Judiciary Committee, on which Congressman Cohen serves, passed H.R. 3596, the Health Insurance Industry Antitrust Enforcement Act, which would repeal the antiquated federal antitrust exemption for health insurance and medical malpractice insurance companies that engage in price-fixing and other collusive activity. The legislation would subject health insurers and medical malpractice insurers to the same good-competition laws that apply to virtually every other company doing business in the United States.
“In a seven year period, the average health insurance premium in Tennessee increased 62% while earned income only increased by 12%. In real dollars, from 2000 to 2007 the annual average combined premium for employers and workers rose from $6,500 to an eye-popping $10,606. The bottom line is that if they can afford it, Tennesseans, especially low-income wage earners, are paying more for less coverage. Now is the time to ensure that health insurance companies are not engaging in anti-competitive practices that make it more difficult to get coverage,” Congressman Cohen said. “Competition leads to lower prices and better coverage. The Enforcement Act that passed the Judiciary Committee today levels the playing field for consumers and small business owners trying to find affordable coverage and sends a strong message to the insurance industry that they should be putting people ahead of profits.”
In 1945, the Congress passed the McCarran-Ferguson Law that provided a broad antitrust immunity for insurance companies. H.R. 3596 carves out price-fixing, bid rigging and market allocation out of the blanket protection of McCarran-Ferguson with respect to health and medical malpractice insurers. As a result, courts will no longer be forced to dismiss cases involving these allegations.
H.R. 3596 now goes to the House Rules Committee and Speaker Pelosi to decide when the bill will be voted on by the full House of Representatives. Similar legislation is pending in the Senate.
________________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov
“In a seven year period, the average health insurance premium in Tennessee increased 62% while earned income only increased by 12%. In real dollars, from 2000 to 2007 the annual average combined premium for employers and workers rose from $6,500 to an eye-popping $10,606. The bottom line is that if they can afford it, Tennesseans, especially low-income wage earners, are paying more for less coverage. Now is the time to ensure that health insurance companies are not engaging in anti-competitive practices that make it more difficult to get coverage,” Congressman Cohen said. “Competition leads to lower prices and better coverage. The Enforcement Act that passed the Judiciary Committee today levels the playing field for consumers and small business owners trying to find affordable coverage and sends a strong message to the insurance industry that they should be putting people ahead of profits.”
In 1945, the Congress passed the McCarran-Ferguson Law that provided a broad antitrust immunity for insurance companies. H.R. 3596 carves out price-fixing, bid rigging and market allocation out of the blanket protection of McCarran-Ferguson with respect to health and medical malpractice insurers. As a result, courts will no longer be forced to dismiss cases involving these allegations.
H.R. 3596 now goes to the House Rules Committee and Speaker Pelosi to decide when the bill will be voted on by the full House of Representatives. Similar legislation is pending in the Senate.
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________________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov
Issues:Health Care