An executive order may come next week allowing individuals to purchase insurance across state lines.
Touted for years by Republicans, this move is purported to increase competition that will help drive down prices. Experts are not so sure. Insurers have never been enthusiastic.
On Wednesday Trump said,
“I’ll probably be signing a very major executive order where people can go out, cross state lines, do lots of things and buy their own health care. It’s being finished now. It’s going to cover a lot of territory and a lot of people, millions of people.”
In 2005, a similar bill was introduced in Congress. Since then, interstate insurance sales has become a part of the GOP’s health reform platform.
The regulation of insurance has been the responsibility of the states for decades. Each state has a Department of Insurance and a Commissioner of Insurance.
The National Association of Insurance Commission and The Center for Insurance Policy & Research weighed in on the idea in its “Interstate Health Insurance Sales: Myth vs. Reality.” paper, writing:
Some have suggested that allowing interstate sales of health insurance policies will make coverage more affordable and available. In reality, interstate sales of insurance will allow insurers to choose their regulator, the very dynamic that led to the financial collapse that has left millions of Americans without jobs. It would also make insurance less available, make insurers less accountable, and prevent regulators from assisting consumers in their states.
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