House Panel To Consider Data-Sharing In Health Antitrust Bill
By Kristina Peterson, Of DOW JONES NEWSWIRES
WASHINGTON -(Dow Jones)- A U.S. House panel weighing legislation aimed at
health insurance plans' anti-competitive behavior may modify the bill to allow
limited data sharing.
Members of a House Judiciary subcommittee may amend a bill that would repeal
antitrust exemptions for the health insurance and medical malpractice insurance
industries by permitting companies to share data as long as the practice doesn't
restrict competition. Ilene Knable Gotts, chair of the American Bar
Association's antitrust law section, proposed several "safe harbor" protections,
including data sharing, to deter potential litigation if Congress passes
legislation to remove antitrust exemptions. The ABA favors lifting the antitrust
immunity.
"Industry-specific exemptions from antitrust laws are rarely justified," Gotts
said. She recommended that insurers be allowed to share specific information
like loss estimates and standard policy forms.
Rep. Diana DeGette , D-Colo., said lawmakers would consider the
recommendations as a "possible amendment" as the bill moves forward.
House Judiciary Chairman John Conyers, D-Mich., Rep. Hank Johnson, D-Ga., and
DeGette introduced a bill last month that would remove the health and medical
malpractice insurance industries' antitrust immunity under the McCarran-Ferguson
Act of 1945. The Senate is considering a bill with identical language.
Johnson, pointing to rising health-insurance premiums and industry profits,
asked "Where is this vigorous competition in this industry?"
Other speakers noted that the number of recent mergers between health-
insurance companies has resulted in a more concentrated marketplace. According
to an American Medical Association study, in nearly 90% of metropolitan areas,
one insurer has at least 30% of market share, and in 16% of the metropolitan
areas, one insurer enjoys a market share of 70% or greater.
"That doesn't sound like a competitive marketplace to me," said David Balto,
senior fellow at the Center for American Progress Action Fund, who argued that
only a public health-insurance plan could level the field. "The public plan will
have the clout to bring competition to the markets. Other insurance companies
will have to compete," he said.
Trade associations say the industries already face heavy regulation, both at
the state and federal levels.
"This is one of the most regulated industries in America," said Robert
Zirkelbach, spokesman for America's Health Insurance Plans. "The McCarran-
Ferguson Act is very limited. This is a sideshow that's politically motivated."
Passage of the bill could result in increased costs from lawsuits, he said.
Rep. Howard Coble, R-N.C., the panel's ranking member, said while he would not
rule out insurance reform, he was concerned the bill could eventually lead to
reversals for other industries.
"The state regulators have done a good job at protecting consumers," Coble
said. "I'm concerned this may be the beginning of a broad scale effort to repeal
all of McCarron-Ferguson."
-By Kristina Peterson, Dow Jones Newswires; (202)862-6619; kristina.peterson@
dowjones.com
(END) Dow Jones Newswires
10-08-091534ET
Copyright (c) 2009 Dow Jones & Company, Inc.
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