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"The House health-care bill would repeal an exemption from federal antitrust oversight that the health-insurance industry has enjoyed for decades, but the move alone might not make local insurance markets more competitive.
The repeal is necessary to inject competition into regional insurance markets, according to Rep. Diana DeGette (D., Colo.), one of several members of Congress behind a push to repeal the exemption. She cited American Medical Association figures showing that 94% of those markets are highly concentrated. She said she wasn't sure whether the antitrust exemption was to blame for the lack of competition, but "the way the market is behaving would send up red flags," she said.
Ms. DeGette said repealing the exemption is also needed to promote competition in the health-insurance exchanges envisioned under the House bill. Otherwise, she said, insurers "could say 'You operate in this market, and you operate in that market.'"
America's Health Insurance Plans, the health-insurance industry's trade group, said insurance is heavily regulated by the states, where antitrust laws mirror federal rules prohibiting price-fixing and collusion. "Insurers are only exempt from federal laws if there are state laws. We are not letting anyone off the hook here," said William Schiffbauer, a health-insurance-regulation lawyer who consults for AHIP, among others."http://online.wsj.com/article/SB125763748641536301.html?mod=googlenews_wsj
It would make the insurance companies no longer exempt from federal antitrust laws, though there are laws in the states. It would help the federal govt. have more oversight on the insurance companies and that is the important thing.
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