First, the states already regulate the insurance industry.
Second, If there is a loophole that is allowing the company to jack her rates up that much then there's remedies for that without changing a whole system.
Third, I'm still not buying her whole story.
I'm wondering if this lady is not referring to a 3 month policy and not a 1 month. Based on what I found a three month policy for her age, company, area, would be $706.44.
What you say makes sense, but perhaps she has shopped around and is getting the best premium she can for someone with cancer. Maybe the $706.44 you found is the premium for someone without cancer? Or, perhaps she is unable to shop around if, like in my son’s story, a new policy would have a ‘rider’ excluding her from coverage on the cancer for the first year. They’d have to find a loop hole since she’s been cancer free for so long, but that would be taking a huge risk...if she had a relapse, she’d be screwed...could be that not even her medication would be covered for the first year. What’s scary to me is....yeah, even if they come up with some way to prevent them from ‘denying’ you a policy, what if insurance companies decide to put year-long riders on all new policies for people with diabetes, asthma, high blood pressure, etc.? In which case, it might be difficult to find one who won’t add a rider, even if we’re allowed to shop across state lines. Could be it would be like the cost of gas...you know...where they are all in kahootz and charge very close to the same price/gallon. As you can see, I don’t know that much about these things...seems to me like competition has no affect on the price of gasoline.