Why is the American Left so determined to prevent Health Insurance from being sold across state lines?

Question

When you look at the American Health Care System as it stands, it's an epic clusterfúck. 

One of the major reasons is that Health Insurance Companies don't have to compete nation-wide for customers and each state is a Monopoly... 

There may be nation-wide COMPANIES, but Blue Cross Blue Shield of Illinois is different from Blue Cross Blue Shield of Arizona and offer different coverage for vastly different prices. 

The 2 things we need to do to get our Health Care System under control is to do what we did with Car Insurance and throw it open Nation Wide and let the market find its own level. 

Why was it OK for Car Insurance? 

Do you think that companies like GEICO and Progressive would offer such low rates if they knew that they had no competition beyond the handful of other agencies that all seem to stick to a similar price? 

What's the point of lowering prices when you have a captive customer base that can't come back and say "I found a way better price with your competitor over in Oregon! Will you match the coverage/price or do I take my business elsewhere?" 

Why is it considered sacrilege to bring up eliminating the state-restrictions and ask for some tort reform? 

[PDF] Envisioning a Free Market in Health Care 
http://www.realclearmarkets.com/blog/cj31n1-2.pdf
By D. Eric Schansberg

? · Answer

Health insurance is exempt from monopoly laws and the big insurance companies keep out many of the smaller ones in certain lucrative markets.

The same plan has different rates across the US because costs are different across the U.S.

Auto insurance rates are determined by each state, just like health insurance. You have to buy auto insurance in the state where you live, just like health insurance.

Each state has its own insurance commission to oversee and regulate rates and practices in their own state. It is not a national insurance commission.

Insurance companies already compete with each other within a state.

You cant buy a policy in a different state because cost of living varies so do rates. If you live in California you cant use a policy from Alabama because the doctors in California wouldnt get reimbursed as much and you, the patient, would have to pay a bigger share of the cost.

By tort reform people usually mean limiting jury awards in personal injury cases. That may reduce a doctor's malpractice premiums but it wont affect your or my premiums.

Trending News

Why is the American Left so determined to prevent Health Insurance from being sold across state lines?

1 Answer