WASHINGTON, DC - Reps. Gene Taylor (D-MS), Peter DeFazio (D-OR), Peter Welch (D-VT) and Bart Stupak (D-MI) Thursday sent a letter to Speaker Pelosi urging her to include language in the health reform bill that would require the health insurance industry to operate under the same anti-trust laws as all other industries.
"Insurance companies should not be above the law." Rep. Taylor stated. "While this effort applies only to health insurance, Congress should follow up and repeal the anti-trust exemption for all lines of insurance."
The health insurance industry, as well as all other lines of insurance, has operated beyond the reach of America's anti-trust laws since the McCarran-Ferguson Act was passed by Congress in 1945.
This exemption was intended to be temporary, but it has not turned out that way. The insurance industry claims they are currently subject to state anti-trust laws. The truth is many states have limited resources to investigate and go after anti-trust violations.
Repealing the antiquated McCarran-Ferguson law would effectively end insurance company collusion and bring much-needed competition to the industry. The Consumer Federation of America has said that this action alone would save consumers more than $40 billion in insurance premiums.
The letter addressed to Speaker Pelosi was also signed by Reps. John W. Olver, Daniel Lipinski, Pete Visclosky, Raul Grijalva, Betty Sutton, Elijah E. Cummings, Dennis Kucinich, Eric Massa, Earl Blumenauer, Brian Baird and Bob Filner.
Click HERE to read the letter.