Selling Health Insurace Across State Lines - Could It Backfire?

[Alston]

Whether or not health care reform gets repealed by Congress or overturned by the Supreme Court, sooner or later we will one again hear people talking loudly about allowing health insurance companies to sell across state lines.

My thinking is that allowing them to deregulate will ultimately result in less competition and not more.

(Many of the people talking about this don't even understand the issue at its most basic level. It is really not about companies selling across state lines. They already do that. It is really about companies selling across state lines with less regulation.)



We have a great insurance company here in Connecticut called Connecticare. Even though it is only a regional company, it usually gets top ten marks for consumer satisfaction in US News and World Report's annual NATIONAL survey.

It also goes way beyond the mandates in that about 90% of the money it takes in goes out in benefits.

My fear is that companies like this will be swallowed up by the bigger companies.

More competition may be a good thing, but unbridled unregulated competition will ultimately mean less competition.

Here are the rest of the videos I did about selling health insurance across state lines.

Selling health insurance across state lines playlist.

 

[somarco]

Re: Selling Health Insurace Across State Lines - Could It Backfir

The idiots that advocate selling across state lines have no clue, which in itself is not a revelation.

They say if TV's and airline tickets can be sold across state lines then so should insurance.

Health insurance is uniquely priced to reflect costs and utilization of a particular area. Also, all 57 states have their own set of mandates that must be met before a policy can be sold in that state.

If NY, a truly fuched up state for insurance allowed someone to buy a policy from TX, another dysfunctional state but in a different way the policy sold by Peeler to Med Supp guy would have to be repriced to reflect NY mandates, costs and utilization. In doing so, Peelers plan would double or more to make it NY compliant.

End result, no advantage.

 

[Alston]

Re: Selling Health Insurace Across State Lines - Could It Backfir

Health insurance is uniquely priced to reflect costs and utilization of a particular area.

I agree. I even did a video to make that very point.

 

[somarco]

Re: Selling Health Insurace Across State Lines - Could It Backfir

Do I get royalties every time it plays?

 

[ABC]

Re: Selling Health Insurace Across State Lines - Could It Backfir

I think the selling carriers across state lines makes a lot of sense. If the plan does not have to comply with state mandates the policy is going to be cheaper. The residents of states that have huge mandates NY, Cali and so on could purchase an out of state policy that does not cover those mandates.

There would be major issues with claims but we already have rented networks. The carriers could rent those network in those areas.

It really comes down to the DOI's losing power. They are going to lose power anyways if a federal exchange is introduced.

 

[Newby]

Re: Selling Health Insurace Across State Lines - Could It Backfir

I disagree Alston.

The politicians wouldn't promote it if they hadn't first thought it through very carefully from all angles and really studied all the consequences. They have a VERY high level of understanding about health insurance or they wouldn't be out there trying to revamp the whole industry....probably.

 

[AndreaSti]

Re: Selling Health Insurace Across State Lines - Could It Backfir

I disagree Alston.

The politicians wouldn't promote it if they hadn't first thought it through very carefully from all angles and really studied all the consequences. They have a VERY high level of understanding about health insurance or they wouldn't be out there trying to revamp the whole industry....probably.

You sure give the politicians a lot of credit!Right!

 

[VolAgent]

Re: Selling Health Insurace Across State Lines - Could It Backfir

I think the selling carriers across state lines makes a lot of sense. If the plan does not have to comply with state mandates the policy is going to be cheaper. The residents of states that have huge mandates NY, Cali and so on could purchase an out of state policy that does not cover those mandates.

There would be major issues with claims but we already have rented networks. The carriers could rent those network in those areas.

It really comes down to the DOI's losing power. They are going to lose power anyways if a federal exchange is introduced.

If that is really all there is to it, then why do carriers have different rates for different parts of a state?

 

[somarco]

Re: Selling Health Insurace Across State Lines - Could It Backfir

I think the selling carriers across state lines makes a lot of sense. If the plan does not have to comply with state mandates the policy is going to be cheaper.

In order for that to happen the state would have to waive the mandates. If they are going to do that, there is no need to sell across state lines and incur the filing expense, etc.

The better choice would be for states to allow carriers to offer two kinds of plans. One with mandates, one without.

Premiums would immediately drop by 30%, even more in GI states.

why do carriers have different rates for different parts of a state?

Different factors.

Network penetration (two areas in GA where Blue can't compete due to lack of hospital participation), accessibility to trauma care & neonatal, plus regional cost differences.

 

[VolAgent]

Re: Selling Health Insurace Across State Lines - Could It Backfir

Different factors.

Network penetration (two areas in GA where Blue can't compete due to lack of hospital participation), accessibility to trauma care & neonatal, plus regional cost differences.

Exactly my point. Yes, mandates are a huge part of the cost difference, but there are other factors too.