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Republicans say yes, the law should be changed to allow insurance companies to sell health coverage to people in other states. Currently, consumers can buy policies only from insurers licensed by the states in which they live. A regulation in place to help protect consumers. However, Republicans who are pushing for the measure to be passed say selling across state lines will give Americans who buy individual health insurance individual health insurance a greater choice of plans and the possibility of lower prices.
The Republican idea has been incorporated into the Democrats’ House and Senate health bills, though in a somewhat different form. And it’s expected to be included in any legislation that wins final passage.
But critics say this move has not proven to be effective, and may in fact hurt consumers. Those who don’t support the idea say Americans who purchase insurance across state lines may be convinced a cheaper health insurance plan is best for them, when it actuality it is not, and will likely have fewer benefits. If the individual with fewer benefits falls sick, their health insurance plan many not offer enough protection.
And, back in 2007 a Rutgers University study, concluded “Despite exhaustive research, little compelling evidence exists that state health insurance mandates do, in fact, have a significant impact on” the cost of health insurance. They said
insurance companies keep costs down by using their volume-based bargaining power to make agreements with doctors, hospitals and other healthcare providers to get lower rates than any individual buyer could ever achieve.
A smaller insurance company in, say, a smaller state would have a difficult trying to get lower medical rates .It seems the only way for insurers to offer cheap insurance across states lines would be to offer less comprehensive and effective coverage.
Tags: health bill, health insurance, individual health insurance, republicans, state lines
