The Justice Department (DOJ) announced that the Competitive Health Insurance Reform Act of 2020 was signed into law on Jan. 13.
Per the DOJ, the repeal of the McCarran-Ferguson exemption for health and dental insurance “will assist the Antitrust Division in its mission to enforce the antitrust laws by narrowing this defense and clarifying that, except for certain activities that improve health insurance services for consumers, the conduct of health insurers is subject to the federal antitrust laws.”
The McCarran-Ferguson exemption repeal may not expose carriers to additional risk or regulation given dental carriers generally do not engage in those activities governed by McCarran. Regarding data sharing, the legislation provides an exception with respect to types of data collection and dissemination in section 2(a)(2). The primary concern will be potential costly litigation prompted by the repeal to test any new legal precedent, the costs of which could be borne by employers and enrollees via increased premium.
NADP and our partners across the insurance industry have been actively assessing the implications of this repeal and any need or opportunity for technical amendments.
Contact Teresa Cagnolatti, Director of Government and Regulatory Affairs, with questions.