Congressman Tom Perriello and Congresswoman Betsy Markey are introducing legislation to repeal the anti-trust exemption for health insurance companies. This is part of the House strategy to push those elements of healthcare reform that can be done as freestanding bills while Dem leadership works on negotiating the larger bill.
From Perriello's and Markey's press release:
The measure would end special treatment for the insurance industry that allows them to fix prices, collude with each other, and set their own markets without fear of being investigated. Removing this exemption has been a common priority of these two freshmen lawmakers, though they voted differently on the initial House health care reform bill.
“It’s time for Washington to decide whether we stand with patients or profiteering, whether we believe in market competition or a collusion between politicians and insurance monopolies. It’s time to end the monopoly protections that Washington has protected for decades as prices skyrocketed. It’s time for a simple, clean bill - no carve-outs or special deals - that forces insurance companies to compete. It’s time to put patients and cost relief first,” said Rep. Perriello. “Americans deserve to know who stands with them against the price gouging of middle-class and working-class folks. Today, we do.”
“I’ve heard from tens of thousands of Coloradans across my district, and though people’s opinions may vary, the common message is clear: the current health care system is crushing our families and businesses,” said Rep. Markey. “Support for removing this unfair exemption cuts across party lines, and is a major piece of common ground that I’ve been working toward in our country’s health care debate. This is about bringing sorely-needed competition back into an industry that has for too long wielded monopoly control over hard-working American families.”
Repealing the exemption isn't likely to make a tremendous policy difference in the absence of the larger, comprehensive reform with regulation, and particularly the national exchange. But it's a smart political move, putting pressure directly on Republicans in the House to either vote directly for insurance companies over American consumers. It's also politically smart for two Freshman reps from swing districts taking the lead in introducing it. Passing this legislation will also hopefully keep some pressure on the Senate to figure out what in the hell they're going to do to get reform done.