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?


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2 Comments for “Health Care Reform: Selling Insurance Across State Lines”

  1. 1Berial

    It would probably end up exactly like credit card companies, you know those companies that only incorporate in the one state in the nation with the least restrictions. (Cheaper to buy one states legislature than 50 don\’t cha know.) Are credit cards considered interstate commerce? If so I\’d expect oversight of insurance to end up about as strict as it is on credit card companies.

    I\’m sure we\’re all gonna just love that \’you cannot sue but must enter arbitration\’ clause when we have a \’problem\’ with our insurance company. (If you don\’t have that situation already!)

  2. 2Berial

    Hey! Looky! If you mistype your security code then your blog throws in a bunch of \ in front of every ‘. How…useful.

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