Sounds Like A Good Idea? Selling Insurance Across State Lines?

[ehrnst]

(video at link)

Presidential candidates like to propose solutions to long-standing problems. Health care is no exception.

But there’s a reason some problems are “long-standing.” They may have no easy solution. Or the solution is not politically feasible. Or there’s a solution that sounds good on the campaign trail but is not likely to actually work.

This is part of a series of videos about health policy promises that “sound like a good idea.” Here Julie Rovner and Francis Ying explore why increasing competition in health insurance by allowing sales of policies across state lines might not be such a good idea after all.

The other “Sounds Like A Good Idea” videos examined regulating drug prices and and proposals to establish a new federal high-risk insurance pool if lawmakers change the health law’s guarantee of insurance for people with pre-existing conditions.

For more information on the interstate health insurance, see earlier KHN coverage: FAQ: Selling Health Insurance Across State Lines.

http://khn.org/news/sounds-like-a-good-idea-selling-insurance-across-state-lines/

[Wounded Bear]

1. The inherent lie in that proposal is that they already can sell across state lines...

Their real complaint is that Ins Co's have to comply with the state laws they sell in. The Repub proposal is really an attempt to do an end around and bypass all of the State Insurance Commisioners, who enforce state regulations. This would, of course, trigger a race to the bottom, where all the Ins Co's would move to the least regulated states and sell for more profit in other states that would be prevented from regulating to their own needs and charging fees to do so.

It's the ultimate red herring in the Insurance scam, I mean game.

[bettyellen]

5. Interesting- they really are trying to take away states rights to protect our citizens-

And make it more expensive for them to do so.

[gibraltar72]

7. Nailed it

I sold insurance and securities. The first thing an old timer told me was if the company is out of Texas it isn't worth a tinkers dam. Their plan has nothing to do with competition only cutting standards. Consumers would be SOL in any dispute because your elected official would have no say. Some ahole appointed commissioner in a state you wouldn't spit on would control your dispute.

[MontanaMama]

2. Without clicking on any of these links

the one major problem that I see with selling insurance across state lines is that consumer protections are often specific to each state. Example: If I were to buy insurance in Idaho and had a problem with it, the Montana state insurance commission would not have jurisdiction over the Idaho company. This might sound like a small thing but if your insurance company is withholding benefits or denying coverage (like they do every single day) you'd likely have no recourse. Very big deal.

[SamKnause]

3. There is no law against cross state plans.

They are just lying as usual.

It is all they know how to do.

They truly sicken me to my core.

[KT2000]

6. it is often overlooked

but any business doing business in states, cities, and counties in the US need to have a license to do business there - even if it is only through the mail or by phone.

[crazycatlady]

8. It is to take state level regulations away

If you have a credit card, look at the return address on your statement. It's either DE or SD. THese are the two states with the most bank/credit card friendly laws so all the companies are based in those two states.

Same thing would happen to health insurance.