Mr. Speaker, I thank Chairman Goodlatte and the Judiciary Committee for their thorough work on this bill. I would also like to express my appreciation to the broad group of stakeholders who have helped to shape, improve, and support this…
Mr. Speaker, I thank Chairman Goodlatte and the Judiciary Committee for their thorough work on this bill. I would also like to express my appreciation to the broad group of stakeholders who have helped to shape, improve, and support this commonsense and consumer- centric legislation.
As Congress, once again, faces the preeminent task of repairing our Nation's healthcare system, first and foremost, we must establish the proper foundation for a competitive and consumer-driven health insurance marketplace that empowers patients.
The Competitive Health Insurance Reform Act of 2017 will restore the application of Federal antitrust laws to health insurance and infuse much-needed competition and transparency to the industry. Ending the special-interest exemption is the essential first step to broader healthcare reform. Popular cost-reducing reform priorities, such as selling insurance across State lines and developing diverse, consumer- driven plans, are predicated on the robust competitive markets this bill will enable.
As a healthcare provider for more than 25 years, I understand firsthand the importance of a competitive and dynamic health insurance market. Patients, doctors, and hospitals alike benefit when health insurers compete to provide a variety of quality coverage options.
It is apparent that after 70 years, McCarran-Ferguson, the broad- stroked exemption created by Congress in the 1940s, was not wise. Over decades, and expeditiously since the passage of ObamaCare in 2009, the health insurance market has devolved into one of the least transparent and most anticompetitive industries in the United States. These antiquated exemptions are no longer necessary for health insurance. There is no reason in law, policy, or logic for the industry to have special exemptions that are different from all other businesses in the United States.
The interpretation of antitrust law has narrowed dramatically over the decades. Many of the practices which insurers say they need this exemption to do, such as analyzing historical loss data, have proven to be permissible by the Federal Trade Commission and the courts over the decades since McCarran-Ferguson was passed.
This narrowing of scope has resulted in a law whose efficacy and usefulness long since expired. Yet, the shell of this zombie law lurks to scare off potential, legitimate legal challenges from States, patients, and providers. These entities do not have the tools, money, or manpower to challenge these monopolies in court or head-on in the current market. Only the Federal Government, with its resources, can enforce the laws which rebalance the playing field of interstate commerce fairly.
I would like to stress the point that this legislation does not affect any other type of insurance other than health insurance. The language of the bill was carefully and deliberately drafted to exclude other areas of insurance, such as life insurance, property and casualty insurance, and excepted benefits like disability income insurance. In short, the legislation before the House today does not repeal the McCarran-Ferguson Act for life insurance, annuities, property and casualty insurance, disability income insurance, and long-term care insurance.
The broad stakeholders of healthcare professionals, insurance providers, and consumer protection groups support this narrow and important scope of the language. I am open to efforts to strengthen the narrow and deliberate scope of this legislation going forward should the need and opportunity arise.
Repeal of this specific section of the McCarran-Ferguson Act, which applies only to health insurance, has strong bipartisan support. As labeled earlier, in the 111th Congress, it passed by a vote of 406-19 and passed the Republican-led House in the 112th Congress by a voice vote. Similar legislation has been introduced by multiple Democratic Members of the House, and the text of my bill has been included in the Republican Study Committee's healthcare reform bill for the last four Congresses in a row.
The passage of the Competitive Health Insurance Reform Act into law is an important first step towards increasing competition in health insurance markets and will assist with setting the foundation for real, competitive, and patient-centered healthcare reform.
At the end of the day, you can tell a lot about a bill by who supports it. H.R. 372 has the support of the healthcare professionals that actually provide care to patients, including doctors, dentists, surgeons, pharmacists, chiropractors, optometrists, and others. This key law, by liberating, liberates the insurance industry and doctors and empowers the patients. Doctors will see and insurance will see that the patient is empowered for new opportunities. Things that we can't even imagine today will exist through competition. It is the American way.
Mr. Speaker, I thank the chairman and the members of the committee for their work on this issue. I urge my colleagues to support this bill.