I 

116TH CONGRESS 

1ST SESSION H. R. 1418 

To restore the application of the Federal antitrust laws to the business 

of health insurance to protect competition and consumers. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 28, 2019 

Mr. DEFAZIO (for himself, Mr. GOSAR, Mr. MEEKS, Mr. LYNCH, Mr. GRIJALVA, Mr. GARAMENDI, Mr. NORMAN, Mr. DESJARLAIS, Mr. DAVIDSON

of Ohio, and Mr. YOHO) introduced the following bill; which was referred 

to the Committee on the Judiciary 

A BILL 

To restore the application of the Federal antitrust laws to 

the business of health insurance to protect competition 

and consumers. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Competitive Health 

5 Insurance Reform Act of 2019’’. 


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1 SEC. 2. RESTORING THE APPLICATION OF ANTITRUST 

2 LAWS TO THE BUSINESS OF HEALTH INSUR3 ANCE. 

4 (a) AMENDMENT TO MCCARRAN-FERGUSON ACT.— 

5 Section 3 of the Act of March 9, 1945 (15 U.S.C. 1013), 

6 commonly known as the McCarran-Ferguson Act, is 

7 amended by adding at the end the following: 

8 ‘‘(c)(1) Nothing contained in this Act shall modify, 

9 impair, or supersede the operation of any of the antitrust 

10 laws with respect to the business of health insurance (in11 cluding the business of dental insurance and limited-scope 

12 dental benefits). 

13 ‘‘(2) Paragraph (1) shall not apply with respect to 

14 making a contract, or engaging in a combination or con15 spiracy— 

16 ‘‘(A) to collect, compile, or disseminate histor17 ical loss data; 

18 ‘‘(B) to determine a loss development factor ap19 plicable to historical loss data; 

20 ‘‘(C) to perform actuarial services if such con21 tract, combination, or conspiracy does not involve a 

22 restraint of trade; or 

23 ‘‘(D) to develop or disseminate a standard in24 surance policy form (including a standard addendum 

25 to an insurance policy form and standard termi26 nology in an insurance policy form) if such contract, 


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1 combination, or conspiracy is not to adhere to such 

2 standard form or require adherence to such standard 

3 form. 

4 ‘‘(3) For purposes of this subsection— 

5 ‘‘(A) the term ‘antitrust laws’ has the meaning 

6 given it in subsection (a) of the first section of the 

7 Clayton Act (15 U.S.C. 12), except that such term 

8 includes section 5 of the Federal Trade Commission 

9 Act (15 U.S.C. 45) to the extent that such section 

10 5 applies to unfair methods of competition; 

11 ‘‘(B) the term ‘business of health insurance (in12 cluding the business of dental insurance and limited13 scope dental benefits)’ does not include— 

14 ‘‘(i) the business of life insurance (includ15 ing annuities); or 

16 ‘‘(ii) the business of property or casualty 

17 insurance, including but not limited to— 

18 ‘‘(I) any insurance or benefits defined 

19 as ‘excepted benefits’ under paragraph (1), 

20 subparagraph (B) or (C) of paragraph (2), 

21 or paragraph (3) of section 9832(c) of the 

22 Internal Revenue Code of 1986 (26 U.S.C. 

23 9832(c)) whether offered separately or in 

24 combination with insurance or benefits deVerDate Sep 11 2014 00:27 Mar 16, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1418.IH H1418

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1 scribed in paragraph (2)(A) of such sec2 tion; and 

3 ‘‘(II) any other line of insurance that 

4 is classified as property or casualty insur5 ance under State law; 

6 ‘‘(C) the term ‘historical loss data’ means infor7 mation respecting claims paid, or reserves held for 

8 claims reported, by any person engaged in the busi9 ness of insurance; and 

10 ‘‘(D) the term ‘loss development factor’ means 

11 an adjustment to be made to reserves held for losses 

12 incurred for claims reported by any person engaged 

13 in the business of insurance, for the purpose of 

14 bringing such reserves to an ultimate paid basis.’’. 

15 (b) RELATED PROVISION.—For purposes of section 

16 5 of the Federal Trade Commission Act (15 U.S.C. 45) 

17 to the extent such section applies to unfair methods of 

18 competition, section 3(c) of the McCarran-Ferguson Act 

19 shall apply with respect to the business of health insurance 

20 without regard to whether such business is carried on for 

21 profit, notwithstanding the definition of ‘‘Corporation’’ 

22 contained in section 4 of the Federal Trade Commission 

23 Act. 

Æ 


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