Urging Congress to end the antitrust exemption for insurers.
If enacted, HCR120 aims to dismantle the protections that have allowed insurers to engage in anti-competitive behaviors such as price collusion and market division. This measure calls for an end to practices that restrict coverage, inflate prices, and negatively influence the insurance marketplace, providing an avenue for restoring competition which could ultimately benefit consumers through better pricing and service options.
HCR120 is a concurrent resolution urging the United States Congress to repeal the antitrust exemption for insurance companies established by the McCarran-Ferguson Act of 1945. This act has allowed insurers to operate without the same level of scrutiny that other industries face under federal antitrust laws, leading to concerns about consumer harm due to monopolistic practices. The resolution highlights the historical context of the law, noting the intention behind its original passage was misunderstood and has since been exploited to create a lack of competition within the insurance market.
The resolution portrays a significant issue in the current healthcare landscape where more than 90 percent of health insurance markets are highly concentrated. This situation has resulted in limited choices for consumers and escalating premiums, particularly in the health insurance sector. Advocates for the repeal argue that without the exemption, insurers would face antitrust scrutiny similar to other industries, which would help prevent the current trend toward corporate concentration and enhance competition, improving outcomes for consumers. Critics, however, may highlight potential disruptions to the insurance industry that could arise from such regulatory changes.