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AHIP Statement on H.R. 4626
Date:2/24/2010

share your view that such practices are harmful to consumers and cannot be tolerated. However, we want to assure you that these activities are not permitted under the McCarran-Ferguson Act and are not tolerated under state law. Indeed, state insurance regulators actively enforce prohibitions in these areas.”

Congressional Budget Office analysis (10/29/09): “The analysis also takes into account the provisions of section 262 of Division A regarding the application of federal antitrust laws to health insurers. CBO estimates that implementing those provisions would have no significant effects on either the federal budget or the premiums that private insurers charged for health insurance.”

Congressional Research Service analysis (8/31/2009): “Given the courts’ narrowing definition of the ‘business of insurance,’ they would not be likely, in any event, to find such activities as market allocation, tying, or monopolization protected by McCarran-Ferguson from the application of the antitrust laws.”

What Others Are Saying About McCarran-Ferguson:

Los Angeles Times: “Lawmakers are expected to pass a bill this week that would repeal the federal antitrust exemption that insurance companies have enjoyed since 1945 -- a move that makes for little more than a good sound bite…Removing the exemption won't do much to boost competition or spark a price war among insurers, however. (The Congressional Budget Office said that a similar proposal in the House's comprehensive healthcare bill would have no significant effect on premiums because state regulators already require insurers to price their coverage competitively.)” (Los Angeles Times, Back to the drawing board, 02/08/2010)

Paul Ginsburg, Center for Studying Health System Change: “‘I don't think this will have much effect. This is strictly political posturing.’…In fact, Ginsburg said, insurers
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