Crossing State Lines

AZDuck said:

Seeing as how I know nothing about this topic

“Health insurers already have the ability to sell insurance in multiple states as long as they comply with state consumer protection and licensing laws, which many already do,” said Mike Consedine, CEO of the National Association of Insurance Commissioners, in a statement to POLITICO. “The NAIC has long been opposed to any attempt to reduce or preempt state authority or weaken consumer protections.”

Several states — including Wyoming, Maine and Georgia — have already tried allowing across-state sales, and it’s been a colossal bust. The chief reason: There’s been zero interest from insurers. That’s in part because creating competitive provider networks in states where they don’t have any current customers is incredibly difficult.

In addition, insurers in states with tough regulations are fearful of having to compete against out-of-state plans that don’t have to adhere to the same rules.

“My insurers here absolutely cringe when you talk about across-state sales,” said Washington Insurance Commissioner Mike Kreidler, a Democrat.

Kreidler said he didn't know how an executive order could ever be binding on a state. “I just can’t imagine it having that kind of impact. State law is going to supersede an executive order.”

Trump and other Republicans have long touted sales across state lines as a sure-fire way to bolster competition and drive down prices. The Affordable Care Act allows states to form compacts to test the concept.

But state insurance commissioners — even Republicans — health plans and consumer advocates warn that without strong federal standards, as currently exist with Obamacare, it would likely lead to a "race to the bottom" with insurers flocking to the states with the least stringent rules. Skeptics also worry that there wouldn’t be any accountability for insurers that engage in shoddy business practices if state regulations are stripped away.