With the McCarran-Ferguson Act, Congress determined that states’ regulation of the business of insurance is in the public interest, and therefore prevents federal laws of general application from undermining states’ regulations. This includes a narrow federal antitrust exemption for the business of insurance. For decades, the McCarran-Ferguson Act has been the law of the land, supporting the authority of states to regulate and administer insurance as they determine to be in the best interests of their residents and communities.
Legislative proposals that would repeal or amend antitrust-related portions of the McCarran-Ferguson Act would undermine states’ authority and harm Americans. Repeal of McCarran-Ferguson in general, or the antitrust exemption in particular, would do nothing to increase competition in health insurance markets; is not necessary to allow sales across state lines; and would harm millions of Americans by reducing competition, choice, and innovation.
Health insurance providers remain committed to providing every American with affordable, comprehensive coverage choices that allows them to select a product that best meets the needs of themselves and their families. There are many ways to improve affordability and competition in health insurance coverage markets. Repealing McCarran-Ferguson is not among them.