Daines’ bipartisan bill would hold health insurance industry accountable to antitrust laws

U.S. Sen. Steve Daines (R-MT) on Feb. 6 sponsored bipartisan legislation that would apply federal antitrust laws to the health insurance industry so both market competition and American consumers are protected.

“For far too long, health insurance companies have gotten away with taking advantage of consumers and charging them outrageous prices for their health care,” Sen. Daines said on Wednesday. “It’s time we look into these companies’ practices by demanding transparency in order to hold them accountable.”

The Competitive Health Insurance Reform Act, S. 350, would amend the McCarran-Ferguson Act of 1945, which exempted health insurance companies from federal antitrust laws. Joining Sen. Daines in introducing S. 350 was U.S. Sen. Patrick Leahy (D-VT).

“There’s simply no justification for exempting health insurance companies from laws prohibiting price fixing,” said Sen. Leahy. “Applying our federal antitrust laws to health insurance providers will let Americans feel more confident that the prices they are being charged are the product of a fair marketplace. This bill will curtail the most egregious anticompetitive practices, like price fixing, bid rigging and market allocations, which hurt consumers and drive up healthcare costs.”

Thus far, S. 350 has gained the support of a Montana Dental Association member and the owner of the Southern Montana Optometric Center in Sen. Daines’ home state.

“As a recognized champion on improving quality and affordability in healthcare, Senator Daines is a natural sponsor for this bill,” said Dr. Jane Gillette, former president of the Montana Dental Association. “Transparency and competition are key underpinnings in driving value and this bill gives consumers one more resource in achieving that goal.”

S. 350 has been referred for consideration to the U.S. Senate Judiciary Committee.