116TH CONGRESS 

2D SESSION H. R. 1418 

AN ACT 

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, 
2 

•HR 1418 EH

1 SECTION 1. SHORT TITLE. 

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

3 Insurance Reform Act of 2020’’. 

4 SEC. 2. RESTORING THE APPLICATION OF ANTITRUST 

5 LAWS TO THE BUSINESS OF HEALTH INSUR6 ANCE. 

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

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

9 commonly known as the McCarran-Ferguson Act, is 

10 amended by adding at the end the following: 

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

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

13 laws with respect to the business of health insurance (in14 cluding the business of dental insurance and limited-scope 

15 dental benefits). 

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

17 making a contract, or engaging in a combination or con18 spiracy— 

19 ‘‘(A) to collect, compile, or disseminate histor20 ical loss data; 

21 ‘‘(B) to determine a loss development factor ap22 plicable to historical loss data; 

23 ‘‘(C) to perform actuarial services if such con24 tract, combination, or conspiracy does not involve a 

25 restraint of trade; or 
3 

•HR 1418 EH

1 ‘‘(D) to develop or disseminate a standard in2 surance policy form (including a standard addendum 

3 to an insurance policy form and standard termi4 nology in an insurance policy form) if such contract, 

5 combination, or conspiracy is not to adhere to such 

6 standard form or require adherence to such standard 

7 form. 

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

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

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

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

12 includes section 5 of the Federal Trade Commission 

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

14 5 applies to unfair methods of competition; 

15 ‘‘(B) the term ‘business of health insurance (in16 cluding the business of dental insurance and limited17 scope dental benefits)’ does not include— 

18 ‘‘(i) the business of life insurance (includ19 ing annuities); or 

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

21 insurance, including but not limited to— 

22 ‘‘(I) any insurance or benefits defined 

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

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

25 or paragraph (3) of section 9832(c) of the 
4 

•HR 1418 EH

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

2 9832(c)) whether offered separately or in 

3 combination with insurance or benefits de4 scribed in paragraph (2)(A) of such sec5 tion; and 

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

7 is classified as property or casualty insur8 ance under State law; 

9 ‘‘(C) the term ‘historical loss data’ means infor10 mation respecting claims paid, or reserves held for 

11 claims reported, by any person engaged in the busi12 ness of insurance; and 

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

14 an adjustment to be made to reserves held for losses 

15 incurred for claims reported by any person engaged 

16 in the business of insurance, for the purpose of 

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

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

19 5 of the Federal Trade Commission Act (15 U.S.C. 45) 

20 to the extent such section applies to unfair methods of 

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

22 shall apply with respect to the business of health insurance 

23 without regard to whether such business is carried on for 

24 profit, notwithstanding the definition of ‘‘Corporation’’ 
5 

•HR 1418 EH

1 contained in section 4 of the Federal Trade Commission 

2 Act. 

3 SEC. 3. DETERMINATION OF BUDGETARY EFFECTS. 

4 The budgetary effects of this Act, for the purpose of 

5 complying with the Statutory Pay-As-You-Go Act of 2010, 

6 shall be determined by reference to the latest statement 

7 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 

8 Act, submitted for printing in the Congressional Record 

9 by the Chairman of the House Budget Committee, pro10 vided that such statement has been submitted prior to the 

11 vote on passage. 

Passed the House of Representatives September 21, 

2020. 

Attest: 

Clerk. 
116TH CONGRESS 

2D SESSION H. R. 1418 

AN ACT 

To restore the application of the Federal antitrust 

tect competition and consumers. laws to the business of health insurance to pro-