February 24th, 2010
04:17 PM ET
13 years ago

House votes to repeal antitrust exemption for health insurers

Washington (CNN) - The House voted overwhelmingly Wednesday to repeal the antitrust exemption currently granted to health insurance companies.

The vote was 406-19 to repeal the exemption, which has been in place since the end of World War II. The 19 who voted against the repeal are all Republicans.

Liberal Democrats have said a repeal would help inject new competition into the health care industry while reducing consumer costs.

White House Press Secretary Robert Gibbs told reporters Tuesday that President Barack Obama strongly supports the repeal. "At its core, health reform is all about ensuring that American families and businesses have more choices, benefit from more competition and have greater control over their own health care," Gibbs said.

"Repealing this exemption is an important part of that effort.

Gibbs said the president is not seeking repeal of the exemption in lieu of broader changes to the insurance market. "This is a complementary step along the way," he told reporters.

The debate in the House on Wednesday included a colorful moment between Rep. Anthony Weiner, D-New York, and Republicans.

"You guys have chutzpah," Weiner told Republicans during the debate.

"The Republican Party is a wholly owned subsidiary of the insurance industry," he said, drawing the objections of Republicans, who asked that his words be stricken from the record.

Weiner then asked for unanimous consent to replace his words and said, "Every single Republican I have ever met in my entire life is a wholly owned subsidiary of the insurance industry."

The Republicans objected again, prompting Weiner to rescind his words.

The House version of the health care bill passed last year would have removed the antitrust exemption, while the Senate's version would not.

Advocates of an exemption repeal say that the exemption has allowed health insurance companies to essentially divide the country into geographic zones. They argue the companies benefit from what amounts to local monopolies.

Industry defenders, in turn, point out that insurers are still subject to state regulations. They claim the impact of an exemption repeal is overblown.

Administration officials and their allies in Congress have taken an increasingly tough stance against the unpopular insurance industry. Among other things, Obama's latest proposal for health care reform would give the federal government new authority to block excessive rate hikes by health insurers.

Specifically, Obama's plan calls for the secretary of health and human services to work with a seven-member board made up of doctors, economists, and consumer and insurance representatives to review premium hikes.

The board - to be known as the Health Insurance Rate Authority - would provide an annual report to recommend to states whether certain rate increases should be approved, although the secretary could overrule state insurance regulators.

Updated: 4:36 p.m.

Filed under: Health care • House • Popular Posts
soundoff (56 Responses)
  1. Doris V

    Three cheers for the house. You need to publish the names of the nineteen Republicans who voted against this. As a retired ED nurse, I have been for universal single payer for a long time. This is a step in the right direction. Hope to see access to basic health care declared a right of all human beings and not just a privilege of those who can afford it before I die!!!

    February 24, 2010 05:46 pm at 5:46 pm |
  2. BeverlyNC

    Thank goodness! Every other large industry has to comply with anti-trust legislation and the insurance companies should have to follow the same rules everyone else does.

    Of course Republicans will be against it because they don't think rules or regulations apply to them or their corporate buddies

    It's way past time to make corporations play fair and stop their abuses of the American People. How about it Republicans? Who are you going to stand up for – We the People or your greedy corporate buddies who have destroyed our country???

    February 24, 2010 05:48 pm at 5:48 pm |
  3. Troy


    Go Weiner! Now that's some Chutzpah! 🙂

    February 24, 2010 05:48 pm at 5:48 pm |
  4. George Guadiane - Austerlitz, NY

    Not that it is anything to chear about really, after all, it was congress who gave these criminals the right to collude, plot and plan against their customers in the first place...

    It's kind of like saying the robber took the knife out of the victim's ribs... The victim said "Thank you for taking out the knife, but I don't think you should have stuck me with it in the first place."

    Like 500 lawyers, chained to the ocean floor – it's a start.

    February 24, 2010 05:49 pm at 5:49 pm |
  5. angryoldguy

    Why is it that the Republicans are always against health care reform? Because Rep. Anthony Weiner is absolutely correct in his assertion that the GOP is a subsidiary of the Insurance Industry. They are owned , lock, stock & barrel either by way of large campaign contributions or investments held in "Blind (wink wink) Trusts". The entire situation in Washington is sickining. The congress & senate need to be reformed! They need to quit worrying about being re-elected & take care of the business of the american people, not their own! Those who read this & don't understand it are part of the problem.

    February 24, 2010 05:51 pm at 5:51 pm |
  6. An 8 year old ELEPHANT dung heap, does not transform into compost in just 1 year!

    Since most state insurance commissioners are voted on, and the new Supreme Court legacy would allow big insurance companies to "buy" the very watchdog that should be watching them.

    I like the Fed level idea, at least it is a Cabinet position and not as easily bought and should result in true regulatory oversight.

    February 24, 2010 05:52 pm at 5:52 pm |
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