? asked in Politics & GovernmentPolitics · 1 decade ago

Wouldn't letting insurance companies compete across state lines lower costs?

Wouldn't letting insurance companies compete across state lines lower costs, rather than trying to socialize health care?

Competition = lower costs, higher quality of service

Whoever thought it was a good idea to have Health Insurance companies compete only within one state was a moron. Whose idea was it?

Update:

El Tecolote: I don't know why you think it's that hard. Car insurance already competes across state lines. If you can get Allstate or Geico in New York, you can get it in California, or Kansas, or Alaska.

Update 2:

El Tecolote: It's your responsibility to notify your insurance company if you plan on living in another country. Simply driving from state to state or temporarily living or visiting another state is not "insurance fraud". So I don't see why you view this as a problem unless you ARE willingly committing fraud.

Update 3:

EDIT: "living in another country" should read as "living in another state".

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  • 1 decade ago
    Favorite Answer

    Yes and no.

    It would probably lower costs for healthy individuals, but increase costs for the sick. That's because young, healthy people would tend to buy cheaper insurance from companies located in states with the fewest regulations and consumer protections. However, those companies either would not offer policies to higher-risk individuals or would price them higher than the policies available in their own state -- which in turn would also get more expensive as healthier people shifted to out-of-state plans. As a result, the people who need insurance the most would find it even less affordable than before.

    Selling across state lines therefore would lead to more healthy people with insurance and more sick people without it.

  • 5 years ago

    I suggest one to visit this website where onel can compare quotes from different companies: http://coveragequotes.net/index.html?src=2YAenySi8...

    RE :Wouldn't letting insurance companies compete across state lines lower costs?

    Wouldn't letting insurance companies compete across state lines lower costs, rather than trying to socialize health care?

    Competition = lower costs, higher quality of service

    Whoever thought it was a good idea to have Health Insurance companies compete only within one state was a moron. Whose idea was it?

    Update: El Tecolote: I don't know why you think it's that hard. Car insurance already competes across state lines. If you can get Allstate or Geico in New York, you can get it in California, or Kansas, or Alaska.

    Update 2: El Tecolote: It's your responsibility to notify your insurance company if you plan on living in another country. Simply driving from state to state or temporarily living or visiting another state is not "insurance fraud". So I don't see why you view this as a problem unless you ARE willingly committing fraud.

    Update 3: EDIT: "living in another country" should read as "living in another state".

    2 following 10 answers

  • Anonymous
    5 years ago

    Don't be naive. New companies were an alternative only before the big companies had the means to drive their opponents out of business. With all the tie-ins with banks and insurance, the big corporate health care providers can sink any new comer before it becomes a threat.

  • Liddel
    Lv 7
    1 decade ago

    Also allowing associations pool insurance prospects would lower costs. This was up for a vote a few years ago and Senator Obama voted against it.

    lp

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  • 1 decade ago

    Insurance companies ALREADY compete across state lines. My insurance company (Cigna) sells insurance in just about every state (all I think). I stayed with them when I was transferred from Washington to California.

  • 1 decade ago

    It would make complete sense to let these companies operate like mentioned above. Unfortunately the left will not enact any law that gives away any power they might have. Instead of doing the common sense thing, they would rather punish the major majority of Americans so that 10% of them can have healthcare. You know, taxing us into oblivion to cover the minority.

  • 1 decade ago

    Yes, but that would require getting every state on the same page with every other state regarding laws, statutes and regulations by the hundreds of thousands that differ from state to state.

    It would be like asking California to adopt the same lax gun laws as Arizona, or asking Arizona to adopt the same stringent gun laws as California. It's never, ever going to happen.

    EDIT: If your car is insured in one state and garaged in another, they'll bust you for insurance fraud. You have obviously never moved from one state to another. You would know this simple fact about auto insurance if you did. Auto insurance companies price their premium based on all kinds of traffic data that varies from state to state, even municipality to municipality.

  • Nikki
    Lv 7
    1 decade ago

    Yes. As would ala carte choices. A man doesn't need pregnancy coverage & I dare say most of us don't need drug rehabilitation coverage.

  • 1 decade ago

    I don't know who's idea it was, but people have been complaining about that for YEARS. The administration won't allow it because they aren't trying to "fix" healthcare, they're trying to control it.

  • Anonymous
    1 decade ago

    yes it would

    their will always be a company that will charge the cheapest and give great service to create more business..

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