[116th Congress Public Law 327]
[From the U.S. Government Publishing Office]



[[Page 134 STAT. 5097]]

Public Law 116-327
116th Congress

                                 An Act


 
To restore the application of the Federal antitrust laws to the business 
 of health insurance to protect competition and consumers. <<NOTE: Jan. 
                       13, 2021 -  [H.R. 1418]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Competitive 
Health Insurance Reform Act of 2020. 15 USC 1011 note.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Competitive Health Insurance Reform 
Act of 2020''.
SEC. 2. RESTORING THE APPLICATION OF ANTITRUST LAWS TO THE 
                    BUSINESS OF HEALTH INSURANCE.

    (a) Amendment to McCarran-Ferguson Act.--Section 3 of the Act of 
March 9, 1945 (15 U.S.C. 1013), commonly known as the McCarran-Ferguson 
Act, is amended by adding at the end the following:
    ``(c)(1) Nothing contained in this Act shall modify, impair, or 
supersede the operation of any of the antitrust laws with respect to the 
business of health insurance (including the business of dental insurance 
and limited-scope dental benefits).
    ``(2) Paragraph (1) shall not apply with respect to making a 
contract, or engaging in a combination or conspiracy--
            ``(A) to collect, compile, or disseminate historical loss 
        data;
            ``(B) to determine a loss development factor applicable to 
        historical loss data;
            ``(C) to perform actuarial services if such contract, 
        combination, or conspiracy does not involve a restraint of 
        trade; or
            ``(D) to develop or disseminate a standard insurance policy 
        form (including a standard addendum to an insurance policy form 
        and standard terminology in an insurance policy form) if such 
        contract, combination, or conspiracy is not to adhere to such 
        standard form or require adherence to such standard form.

    ``(3) <<NOTE: Definitions.>>  For purposes of this subsection--
            ``(A) the term `antitrust laws' has the meaning given it in 
        subsection (a) of the first section of the Clayton Act (15 
        U.S.C. 12), except that such term includes section 5 of the 
        Federal Trade Commission Act (15 U.S.C. 45) to the extent that 
        such section 5 applies to unfair methods of competition;
            ``(B) the term `business of health insurance (including the 
        business of dental insurance and limited-scope dental benefits)' 
        does not include--
                    ``(i) the business of life insurance (including 
                annuities); or

[[Page 134 STAT. 5098]]

                    ``(ii) the business of property or casualty 
                insurance, including but not limited to--
                          ``(I) any insurance or benefits defined as 
                      `excepted benefits' under paragraph (1), 
                      subparagraph (B) or (C) of paragraph (2), or 
                      paragraph (3) of section 9832(c) of the Internal 
                      Revenue Code of 1986 (26 U.S.C. 9832(c)) whether 
                      offered separately or in combination with 
                      insurance or benefits described in paragraph 
                      (2)(A) of such section; and
                          ``(II) any other line of insurance that is 
                      classified as property or casualty insurance under 
                      State law;
            ``(C) the term `historical loss data' means information 
        respecting claims paid, or reserves held for claims reported, by 
        any person engaged in the business of insurance; and
            ``(D) the term `loss development factor' means an adjustment 
        to be made to reserves held for losses incurred for claims 
        reported by any person engaged in the business of insurance, for 
        the purpose of bringing such reserves to an ultimate paid 
        basis.''.

    (b) <<NOTE: Applicability. 15 USC 1013 note.>>  Related Provision.--
For purposes of section 5 of the Federal Trade Commission Act (15 U.S.C. 
45) to the extent such section applies to unfair methods of competition, 
section 3(c) of the McCarran-Ferguson Act shall apply with respect to 
the business of health insurance without regard to whether such business 
is carried on for profit, notwithstanding the definition of 
``Corporation'' contained in section 4 of the Federal Trade Commission 
Act.
SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying with 
the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the House Budget Committee, provided that such 
statement has been submitted prior to the vote on passage.

    Approved January 13, 2021.

LEGISLATIVE HISTORY--H.R. 1418:
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CONGRESSIONAL RECORD, Vol. 166 (2020):
            Sept. 21, considered and passed House.
            Dec. 21, considered and passed Senate.

                                  <all>