Today, Rep. Tonko voted to ensure that American consumers get a real choice and a fair deal when purchasing health insurance. The Health Insurance Industry Fair Competition Act will take away the anti-trust exemption for health insurance companies, requiring them to compete fairly and adhere to the same anti-trust laws as other companies. The bill passed with overwhelming bipartisan support with a final vote of 406 to 19.
“For too long, Americans have been had by health insurance companies that don’t play by the rules,” said Rep. Tonko. “Middle-class families are facing higher premiums, a lower quality of coverage and limited choices – all while monopoly health insurance companies are jacking up prices and turning record profits. Enough is enough.”
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% of all insurance markets are “highly concentrated” – meaning consumers have little or no choice between insurance providers.
“There are only two industries that are exempt from anti-trust laws – the insurance industry and major league baseball,” said Rep. Tonko. “It’s high time we repealed that exemption for health insurers so that Americans can get a fair deal when shopping around for something as crucial as health insurance.”
Health insurers that were previously exempt from anti-trust laws will now bear legal responsibility for price fixing, dividing up territories among themselves and sabotaging their competitors in order to gain a monopoly in the marketplace. Such practices have been outlawed in other industries for decades.
“Competition is the core principle of our economy,” said Rep. Tonko. “And for consumers, it’s a guarantee of two things: more choices and lower costs. It is the engine that drives economic growth, spurs American innovation and ensures that consumers are getting a fair deal. This bill creates a fair health insurance marketplace and helps put our economy on sound footing for the future.”
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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