While health insurance across state lines might provide Wild West shoppers with greater choice of plans, I'm not sure about lower prices. Insurance companies, like much of the health care industry, are driven by profit, and the proposed system of interstate health insurance will be as well (with the exception of the nonprofit mentioned in the article). As a result, only bare-minimum benefits may be provided for higher premiums.
Another big issue, mentioned in the article, is regulation. The introduction of interstate health insurance will warrant much tighter regulation, which may not happen. If it doesn't, then consumers will be faced with the problems mentioned above, including minimal coverage and high premiums. Additionally, consumers may have even greater difficulty navigating a maze of health insurance in multiple states, with varying coverage and costs. It doesn't seem to me that interstate health insurance will meet all of the needs in insuring the uninsured, and in improving the efficiency of health care delivery.
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I agree with Aparna. A Naional Insurance Exchange will provide shoppers with more choices, but at what cost? I like the idea that more competition will ensure, hopefully leading to lower prices, however, to be honest I don't think the government will be able to wrangle up all the insurances companies and keep them in line as far as premiums and services rendered are concerned.
ReplyDeleteAs a buyer of insurance, I would of course want the best deal that I can get, but the insurance business is already confusing enough to the common citizen. I believe in large part that is where the states come in to enforce stricter rules in order to protect those who do not understand how the business works.
Who doesn't want a bang for their buck, but many already feel like they are being taken advantage of. In this sense, a more choices, more problems and no means for a solution if things get out of hand.
I also agree with Aparna that insurance across state lines would have issues of regulation. Tighter regulation is ideal in order to ensure that everyone nationwide who buys a particular insurance receives the same thing, but this may be difficult to do.
ReplyDeleteThough, as an insurance premium payer myself, I would appreciate the Wild West aspect in regards to potentially lower prices due to the competitive market.
However, this does guarantee that someone in California and someone in Maine will receive the same thing. This is idealistic. As a Kaiser member who has been in the process of transitioning from Northern California Kaiser to Southern California Kaiser, Kaiser has issue managing their coverage within this state. I can only imagine how many problems would occur transitioning this coverage across state lines.