Interstate Insurance Sales: Wishful thinking, Or A Viable Policy Option?

Anyone who followed the recent election cycle knows that President-elect Donald Trump made “repeal and replace” a cornerstone of his campaign — referring, of course, to the Affordable Care Act (ACA). He, like Mitt Romney and John McCain did in their respective bids for the presidency, has proposed permitting insurers to sell insurance plans across state lines as a possible alternative to the ACA, or at least as a component of a potential alternative. In this post, we’ll take a look at the possible advantages of allowing interstate insurance sales, as well as the reasons opponents say such a policy simply won’t work. First, though, let’s take a closer look at the current situation. The ACA already allows interstate insurance sales A provision in section 1333 of the Affordable Care Act allows states to establish what are called “health care choice compacts,” which permit insurers to sell policies to individuals and small businesses in any state that participates in the compact — provided they abide by specific rules. And several states have explored the possibility. In fact, a few have even enacted statutes pertaining to interstate compacts. But as of yet, nothing has materialized. Several explanations point to why: Complacency on the part of regulators, at both the federal and state level Lack of interest among insurers Lack of demand from consumers Prohibitively restrictive regulations Insufficient time so far for the concept to take root Whatever ...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Costs and Spending Featured Insurance and Coverage Public Health interstate insurance section 1333 Source Type: blogs