The Congressional Record is a unique source of public documentation. It started in 1873, documenting nearly all the major and minor policies being discussed and debated.
“ENHANCING COMPETITION IN HEALTH INSURANCE MARKETS” mentioning the U.S. Dept. of Justice was published in the Extensions of Remarks section on pages E514-E515 on April 13, 2010.
The publication is reproduced in full below:
ENHANCING COMPETITION IN HEALTH INSURANCE MARKETS
______
HON. GWEN MOORE
of wisconsin
in the house of representatives
Tuesday, April 13, 2010
Ms. MOORE of Wisconsin. Madam Speaker, with a large number of concentrated health insurance markets across the country, it is imperative that health care reform initiatives focus on enhancing competition among insurers and providing American consumers with affordable health care coverage. Many health insurance markets in the United States appear to have one dominant insurer, and in many other markets, the top two insurers serve most enrollees. According to the American Medical Association, in 2007, at least one insurer had a combined HMO/PPO market share of 50 percent or greater in 64 percent
(200) of the local markets (or Metropolitan Statistical Areas) of the United States. And the two top insurers accounted for at least 60 percent of enrollment in almost 75 percent of these markets.
Moreover, it can be extremely difficult for new firms, even large national health insurance firms, to enter these markets. A new health insurer in an area will have difficulty attracting customers until a large number of health care providers have signed up. But providers may be reluctant to sign up at competitive rates without assurance that the plan can offer a volume of patients. And both consumers and providers may be skeptical of a new health plan with which they have little experience.
As a recent Congressional Research Service report states: ``The health insurance market has many features that can hinder markets, lead to concentrated markets, and produce inefficient outcomes.'' Dominant insurers may raise premiums or reduce quality of service. They may also reduce or prevent innovations that could benefit consumers or engage in exclusionary practices to make entry more difficult.
HHS or the Exchange Controller, therefore, must take steps to encourage the entry of new, credible insurance companies and prevent dominant insurers from hampering competition. This includes seeking the advice and counsel of the U.S. Department of Justice, Antitrust Division, regarding practices that may cause or continue undue market concentration. This will be achieved in part by ensuring that the antitrust laws remain intact through a savings clause, which was included in both the House-passed and Senate-passed bills. However, improving competition in health insurance markets requires a one-two punch. It also must include seeking the advice and counsel of the U.S. Department of Justice, Antitrust Division, regarding practices that may cause or continue undue market concentration. More competitive health insurance markets will generate significant benefits for American consumers. It is the best way to ensure that all consumers, including individuals who will now be required to purchase health insurance, will be able to obtain quality care at affordable prices.
____________________
