Health Care Reform: Selling Insurance Across State Lines

Tuesday, 26 January 2010, 17:55 | Category : Healthcare, Politics
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Now that Republicans are feeling emboldened by the Massachusetts Senate victory, we’re hearing about their health care reform proposals again. One of their key provisions would allow the sale of insurance policies across state lines, with the supposition that this would foster greater competition among insurance companies. State insurance regulators are leery, because they don’t know how they would regulate these policies. But if you allow insurance policies to be sold across state lines, doesn’t that then become interstate commerce, which is defined as the buying and selling of products and services across state borders? And if so, then the Constitution clearly states that the federal government has jurisdiction over interstate commerce, which takes state regulators out of the picture, and creates a new layer of federal oversight, and puts the federal government’s hands all over health care. I’ve never heard this mentioned in the reform debate. Can anyone tell me how this would not be interstate commerce?