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Pingree Backs Repeal of Anti-Trust Exemption for Insurers
02/24/2010 03:32 PM ET  

Maine's 1st District Congresswoman Chellie Pingree says the exemption has led to less competition in the insurance industry and higher premiums.

Update:  4:43 p.m.  The U.S. House today approved H.R. 4626, which would repeal the anti-trust exemption for insurance companies.  Joining Pingree is supporting the legislation was Maine's 2nd District Congressman Mike Michaud.  In a statement, Michaud said the meausre will "force insurance companies to compete fairly and adhere to the same laws as other companies." 

3:32 p.m.: Maine's 1st District Congresswoman Chellie Pingree today urged her colleagues to repeal the anti-trust exemption for insurance companies. The exemption, she says, has allowed insurers to reap big profits from hefty rate increases over the past decade.

Pingree says in Maine, market dominator Anthem Blue Cross and Blue Shield's rates have goen up 250 percent, ten times the rate of inflation. "The only thing rising as fast as the premiums big insurance companies charge is their profit margin," Pingree says in a statement. "Last year profits for the five biggest insurance companies rose by 56 percent over the year before. I don't know about you, but I don't know anyone else in this economy who got a 56 percent raise last year."

At this hour, the U.S. House is debating whether or not to repeal the 65-year-old exemption. Insurers say the industry is already heavily regulated, and repealing the exemption won't help lower insurance costs. But repeal supporters, such as Pingree, say the exemption has allowed some insurers to dominate the market, stifling competition and driving up premium costs.

Anthem Blue Cross and Blue Shield of Maine is currently requesting approval for a 23 percent rate hike on its policies covering individuals. 



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