The Competitive Health Insurance Reform Act (CHIRA), enacted in January 2021 with overwhelming bipartisan support, marked a major victory for consumer protection. The law repealed a long-standing exemption under the McCarran-Ferguson Act, which had allowed dental insurance companies to operate unregulated by federal antitrust laws. This exemption enabled practices such as collusive bidding, price fixing, and market allocation, leading to inflated premiums, limited competition, and reduced consumer choice.
By clarifying that federal antitrust laws apply to the business of health insurance, CHIRA ensures that health and dental insurers are held to the same standards as other industries. The law empowers the Department of Justice (DOJ) to investigate and prosecute anticompetitive behavior.
Since CHIRA’s enactment, however, little is publicly known about what DOJ or the Federal Trade Commission (FTC) have done to exercise their expanded authorities under the law. To address this, AGD leadership has met with Majority and Minority staff of the Senate Judiciary Committee to encourage outreach to DOJ and push for stronger oversight. AGD will continue to engage with congressional leaders and advocate for the enforcement of CHIRA on behalf of general dentists.
Impact on General Dentistry: Without proper enforcement, anticompetitive practices such as suppressed reimbursement rates, inflated premiums, and market consolidation will continue to harm providers and patients. AGD remains committed to monitoring developments in the insurance industry and advocating for fair competition.
