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Bill Repeals Antitrust Exemption for Health Insurance Companies

Passage of The Competitive Health Insurance Reform Act of 2020 is due in part to American Dental Association (ADA) efforts to persuade Congress that healthcare insurance, including dental plans, should not be protected from certain federal antitrust laws.

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A new law that aims to improve transparency and competition in health insurance marketplaces was signed into law on January 13. Passage of The Competitive Health Insurance Reform Act of 2020 is due in part to American Dental Association (ADA) efforts to persuade Congress that healthcare insurance, including dental plans, should not be protected from certain federal antitrust laws.

The new law removes limited exceptions established by the 1947 McCarran-Ferguson Act, making health insurers subject to the nation’s antitrust laws. The ADA believes the Federal Trade Commission and Department of Justice will be more likely to investigate alleged anti-competitive practices and activities of healthcare insurers since they will now be subject to the same enforcement as other US businesses. 

“Over time, we will expect to see some changes in the dental plan marketplace that would benefit all,” says ADA President Daniel J. Klemmedson, DDS, MD, in an ADA news release. “If dental plan companies are compelled to compete fairly and transparently, we should begin to see increased innovation and choices for consumers and providers.”

Read the ADA’s statement on the new law here. one-page summary and a Frequently Asked Questions (FAQ) document is also available.

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