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New Amendment to McCarran-Ferguson Act Repeals Important Antitrust Exemption for Health and Dental Insurance Companies | Faegre Drinker Biddle & Reath LLP


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Just before leaving office, former President Trump signed the Competitive Health Insurance Reform Act (CHIRA) on January 13, 2021. Among other things, CHIRA amends the McCarran-Ferguson Act to repeal the federal antitrust exemption for health and dental insurance companies, though some carveouts will ensure that some collaborative conduct and information exchanges remain lawful. Under CHIRA, certain practices by health and dental insurance companies that had previously been exempt from antitrust scrutiny may expose these companies to new antitrust risks.
The “Business of Insurance” Exemption
Prior to CHIRA, the McCarran-Ferguson Act exempted the “business of insurance” from federal antitrust law scrutiny if the challenged practice was otherwise subject to state regulation and did not amount to an “act of boycott, coercion, or intimidation.” 15 U.S.C. §§ 1012(b); 1013(b). While the “business of ....

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