Democrats zero in on insurers’ exemption
Democrats zero in on insurers' exemption
October 22, 2009
By: David Espo
Democrats launched a drive at both ends of the Capitol on Wednesday to strip the insurance industry of its decades-old exemption from federal antitrust laws, part of an increasingly bare-knuckled struggle over landmark health care legislation sought by President Barack Obama.
Democrats zero in on insurers' exemption
October 22, 2009
By: David Espo
Democrats launched a drive at both ends of theCapitol on Wednesday to strip the insurance industry of its decades-oldexemption from federal antitrust laws, part of an increasinglybare-knuckled struggle over landmark health care legislation sought byPresident Barack Obama.
Leahy made his comments at the same time the House Judiciary Committee voted 20-9 on a bill co-sponsored by Rep. Diana DeGette, D-Colo., to end an industry exemption that dates to 1945. Three Republicans supported the move.
Senior Democratic officials said the measure may be put into the broader health care bill.
The insurance industry said the moves were based on a misperception of existing law.
"We believe that health insurers have not been engaging in anti-competitive conduct and that McCarran-Ferguson does not provide a shield for such conduct,' " Karen Ignagni, president and chief executive of American's Health Insurance Plans, wrote to Rep. John Conyers, D-Mich., who chairs the Houses Judiciary Committee. "Thus, the bills attempt to remedy a problem that does not exist.
The events coincided with a vote in the Senate to sidetrack legislation averting a 21 percent cut in Medicare payments for doctors in January and raising their fees by $247 billion over a decade. The 47-53 vote was 13 short of the 60 needed to advance the bill, reflecting concerns that the measure would have raised deficits. The result was a defeat for Democrats and an embarrassment for the American Medical Association, which had mounted a seven-figure advertising effort to assure passage of one of its top priorities.