Dems eye insurance industry's antitrust protection
By DAVID ESPO, AP Special Correspondent

WASHINGTON – Top Senate Democrats intend to try to strip the health
insurance industry of its exemption from federal antitrust laws as part
of the debate over health care, according to congressional officials,
the latest evidence of a deepening struggle over President Barack
Obama's top domestic priority.

If enacted, the switch would mean greater federal regulation for an
industry that recently has stepped up its criticism of portions of a
health care bill moving toward the Senate floor.

Congressional officials said Senate Majority Leader Harry Reid of Nevada
and Sen. Patrick Leahy of Vermont, chairman of the Senate Judiciary
Committee, arranged to make the announcement Wednesday, joined by Sen.
Chuck Schumer of New York.

The officials who disclosed the plans did so on condition of anonymity
to avoid pre-empting a formal announcement.

In a statement, the major industry trade group, America's Health
Insurance Plans, said the industry already was one of the most regulated
in the country. The focus on the industry's antitrust exemption, it
said, was "a political ploy designed to distract attention away from the
real issue of rising health care costs."

The move against the antitrust exemption came as Obama appealed to
congressional Democrats not to let internal differences sink his
comprehensive plan to remake the nation's health care system. "The bill
you least like" improves coverage for millions, he said in New York.
"Let's make sure that we keep our eye on the prize."

After months of struggle, Democratic leaders in the House and Senate
hope to have legislation ready for votes in both houses within a few
weeks, and plan on having a compromise measure ready for Obama's
signature by the end of the year.

Progress has been slow, particularly as Democrats squabble over whether
to allow the federal government to sell insurance in direct competition
with private insurers, and if so, under what terms. Obama's remarks
appeared an attempt to place that and similar disagreements in a larger
context — a decades-long attempt to provide insurance for millions who
lack it while cracking down on insurance industry practices such as
denying coverage on the basis of pre-existing medical conditions.

Insurance industry officials have been involved in discussions for
months with the White House and key congressional Democrats over
proposed legislation. They repeatedly said they would accept a series of
new restrictions, as long as the legislation required Americans to
purchase insurance, thus assuring insurers millions of new customers.

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There's no rational reason why health insurers should be exempt from
anti-trust laws.