WRAPUP 1-US Congress cranks up pressure on insurance industry
(For a take a look on healthcare overhaul, click on[ID:nN20512341])
* Democrats crank up pressure on insurance industry
* Repeal of antitrust exemption could be in health bill
WASHINGTON, Oct 21 (Reuters) - Congressional Democratsmoved on Wednesday to repeal the health insurance industry'sexemption from antitrust laws, cranking up the pressure in agrowing battle over President Barack Obama's healthcare reformplans.
The moves were the latest chapter in an escalating feudbetween the industry and backers of sweeping healthcare reformthat would tighten regulations and create a government-runpublic insurance option to compete with private insurers.
The fight intensified after an industry lobbying groupissued a report saying the healthcare reform plan underconsideration in Congress would raise insurance premiums, whichsparked protests from Democrats and the White House.
"It's time to level the playing field for Americanhealthcare consumers and make the insurance industry play bythe same rules that other industries live by," SenateDemocratic leader Harry Reid said.
Proposals in the Senate and House of Representatives wouldrepeal or refine the antitrust exemption granted the industryin 1945. Supporters said the exemption limited competition inan industry where one or two companies often dominate a stateinsurance market.
"It's a different universe today than it was in 1945, andthis exemption is antiquated, out-of-date, and doesn't belong,"Democratic Senator Charles Schumer said.
Senate Democratic leaders said they would offer theirproposal to repeal the exemption as an amendment to a sweepingbill to overhaul the U.S. healthcare system when it hits theSenate floor in the next few weeks.
The House of Representatives Judiciary Committee passed aplan to limit the exemption and make health and medicalmalpractice insurance companies subject to laws on price-fixingand market allocation.
House Democratic leaders said it would be folded into ahealthcare reform bill that is nearly ready for floor debate.
The trade group representing the industry, America's HealthInsurance Plans, said in a letter to House Judiciary CommitteeChairman John Conyers the proposals "attempt to remedy aproblem that does not exist."
"We believe that health insurers have not been engaging inanti-competitive conduct," Chief Executive Karen Ignagni said.
Obama has made his top domestic priority a healthcareoverhaul that reins in costs, regulates the insurance marketand expands coverage, and the insurance industry has emerged asa vocal opponent to plans for a government-run public insuranceoption.
Opinion polls show the public is divided on his healthcareplans, including the public option backed by Obama and liberalsas a way to increase competition but derided by critics as abig-government takeover.
A USA Today/Gallup poll released on Wednesday found 50percent backed a public option and 46 percent opposed it, but aCNN poll found 61 percent supported an insurance optionadministered by the government and 38 percent opposed.
HOUSE CLOSE TO DECISION
Democratic House leaders, who have been meeting for weeksto merge three healthcare bills into one, are close to makingfinal decisions on a plan that could include the most liberalversion of a government-run public insurance option.
Democrats were conducting a head count to gauge whether abill that includes the strong version of a public optionpreferred by House liberals had the 218 votes needed to pass.
"We will have a bill passed well before Thanksgiving,"House Speaker Nancy Pelosi told reporters on Wednesday.
The inclusion of the strongest possible government-runpublic insurance option in the House bill could force aconfrontation with the Senate, where the public option has lesssupport and is less certain to be included in a final bill.
Senate Democratic leaders are merging two bills, but onlyone of the proposals includes the government-run plan.
Pelosi said on Tuesday preliminary Congressional BudgetOffice estimates indicated all three versions of a publicoption would reduce the budget deficit over 10 years and atleast two of the three would come in below $900 billion.
House Democrats were expected to meet again late onWednesday to discuss their options.
On a related measure, Senate Democratic leaders dropped aproposal to scrap the current Medicare payment system fordoctors after the bill failed to gain enough votes to clear aprocedural hurdle.
Republicans and a number of Democrats opposed a proposal toboost doctors' payments under Medicare, the health program forthe elderly, by $250 billion over 10 years. Opponents wereconcerned the measure would add to a record $1.4 trillion U.S.budget deficit this year. [ID:nN21483126] (Additional reporting by Dianne Bartz; Editing by DavidAlexander and Jackie Frank)
Source: Reuters
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