Will Buying Insurance from other Companies Help us get More Affordable Health Insurance
So the Republicans have successfully put the kibosh on the health care plan. Not that they don't have any ideas of their own; whatever health care plan comes to pass, it is sure to have a lot of Republican inputs to it. One of their important suggestions in the whole debacle, is the idea that Americans should be able to buy affordable health insurance across states. Right now, the situation is that you can only buy insurance from an operator who is registered in your own state.
Actually, that is a particularly significant piece of Republican sentiment in the matter. The Democrats are actually taking the Republicans up on this idea, and you can fully expect that whatever health care bill passes, this should be a part of it. Actually, you heard a lot of this when Senator McCain was stumping for his presidency in 2008. Everyone now feels that turning the entire country into the single health insurance market, will only make things more competitive for the insurance companies, and bring prices down. If you live in Colorado, and you suddenly find that a small health insurance company in Pennsylvania is making an offer that your local corporations just cannot match. You could easily buy across state lines.
And they have a point. If your state government has no control over most of the insurance providers in your state, the government just can't exercise of its consumer protection laws anymore. The companies will just say, "Oh!, We're from out of state, so nice try". Actually, in effect, people could end up paying more expensive premiums. Affordable health insurance actually looks much more shaky under this plan, Not to mention more expensive. So how would this actually work?
The states will have to form new principles of how to control companies operating there from outside. They will just have to bring out new legislation to this effect. And they would also need to license their own insurance corporations, to deal outside of the state. Alternatively, the federal office that governs the healthcare issues of federal employees, could deal with out-of-state insurers. In fact, the federal government could apply a single law to all of them, and prohibitsthem from offering anything less than a high level of care.
But the thing is, more choice does not always mean cheaper costs. What if it just results in customers choosing the policies with the lowest price tag, and opting for the lowest cover? For most poor families, getting the lowest possible amount of cover could seem to be a really attractive option sometimes, until the day they fall ill. And what happens if there is a dispute? There are hundreds of thousands of disputes every year involving health insurance companies that deny claims for perfectly valid treatment options. If there is a dispute, subscribers may find themselves having to travel across state lines each year. Affordable health insurance, doesn't come from an excess of competition. It comes with a reasonable amount of time, and proactive government legislation.