ADA News reports that the Competitive Health Insurance Reform Act, legislation that repeals the McCarran-Ferguson antitrust exemption for health insurance companies, became law on Jan. 13.

The law is the “culmination of a multi-year effort by several organizations, including the American Dental Association, to persuade Congress that health care insurance, including dental plans, should no longer be protected from some of the federal antitrust laws,” according to an ADA news release.

The new law is aimed at improving transparency and competition in the health, dental and vision insurance marketplaces. The ADA hopes this will lead the Federal Trade Commission and the Department of Justice to investigate alleged anticompetitive practices and activities of health care insurers, the release said.

Read More

 

How Might This Benefit the Dental Profession, Dental Practices and Patients?

As the ADA explains in this summary, the law is aimed at improving transparency and competition in the health, dental, and vision insurance marketplaces. That said, it is unlikely that there will be any immediate changes for the profession, dental practices and patients/consumers. In the long-term, we expect to see changes in the dental plan marketplace that would eventually benefit all. In the past, many experts believed that the antitrust exemption suppressed the health insurance market dynamic.

If dental plan companies are compelled to compete fairly and transparently, we should begin to see increased innovation and choice for consumers and providers. As the dental plan marketplace changes over time, these dental plan companies might look for ways to distinguish themselves by offering better levels of coverage, expanded provider networks and services, and other improved features.

ADA FAQ

Dentists can read this FAQ to learn more about how the repeal may affect them.

Read the FAQ