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PIA Hails Removal of Medical Malpractice Insurers From Bill Restricting Insurance Antitrust Exemption
Date:2/22/2010

as particularly inappropriate in that it did not relate directly to health insurance," said PIA National Director of Federal Affairs Mike Becker. "A reduction in medical malpractice insurance rates is best achieved through separate legislation addressing tort reform."

"It is conceivable that this proposal could get drawn into President Obama's healthcare reform plan and be changed or amended on the House floor," Becker cautioned. "But as the draft stands now, it's improved." He added PIA will oppose any effort to amend the legislation to include medical malpractice or any other line of insurance. PIA is a participant in a coalition of property/casualty insurers opposing repeal of McCarran-Ferguson.

The McCarran-Ferguson Act assigns the regulation of insurance to the states, providing them with the authority to enforce antitrust laws that prohibit anti-competitive activities such as price-fixing or market allocation. The primary purpose of the limited federal antitrust exemption provided under McCarran-Ferguson is to permit insurers to share data on insurance losses after the fact. This allows small and mid-sized insurers to develop sound actuarial models and sound pricing strategies that they could not develop with their own limited policyholder loss experiences.

"The limited federal antitrust exemption under
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SOURCE National Association of Professional Insurance Agents
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