A bipartisan group of lawmakers recently forwarded correspondence to the U.S. Department of Justice (DOJ), seeking insight regarding health insurance industry federal antitrust enforcement.
U.S. Reps. Peter DeFazio (D-OR), Drew Ferguson (R-GA), Jerrold Nadler (D-NY), Ken Buck (R-CO), and David Cicilline (D-RI) sent a letter to U.S. Assistant Attorney General Jonathan Kanter, requesting information regarding how the DOJ is utilizing expanded authorities address health insurance industry anti-competitive practices.
The lawmakers noted that DeFazio’s Competitive Health Insurance Reform Act (CHIRA), signed into law in January 2021, eliminated a special interest loophole empowering the DOJ to enforce federal antitrust law in the health insurance industry.
“Repealing the antiquated antitrust exemption for the health insurance industry was a monumental legislative achievement, but we must ensure the Department of Justice and the Federal Trade Commission use their expanded authorities to crack down on any anticompetitive practices in this wealthy industry,” DeFazio said. “Even before the COVID-19 pandemic, nearly 1 in 4 Americans—including insured Americans—were skipping medical care and prescription drug doses because of high costs. Today, while affordable medical care is more important than ever, health insurance companies continue to price-gouge consumers and reap massive profits on the backs of seniors, working families, and everyday Americans.”
The lawmakers requested answers to questions addressing whether the Antitrust Division submitted any amicus briefs, notices of supplemental authority, business advisory opinions, or other filings regarding the legal consequences of the Competitive Health Insurance Reform Act in any private litigation; steps the Antitrust Division has taken to review existing healthcare guidelines to determine whether refinements or new guidelines are needed; and whether there are other statutes or case law preventing DOJ efforts to enforce health insurance markets antitrust laws.