Insurance companies measure risk. Males learning to drive pay a higher premium than females because of the increase in risk.
If males all banded together and went to court and sued claiming sexism, what would be the result? The insurance companies will not leave themselves exposed to risk, so they will just raise the rates of female drivers to the same amount. Problem solved for them, but angry overpaying-for-low-risk female drivers.
Cross line insurance buying is the same thing. If you live in a meat and potato, potato couch zip code with very little physical activity(high risk), why should you be allowed to get insurance from a zip code that promotes physical activity, kale eating and no red meat, who live to a hundred(low risk)(I know, boring)?
So what will happen if it is allowed? The insurance companies, once again, will not allow themselves to be exposed to under funded risk, so they will raise the rates for everyone.
You make good points. The Insurance underwriters use loss analyses based on many demographic and actuarial factors . They can’t do that if applications are taken from coal miners in other states. The Mc carran Ferguson law is still the federal law prohibiting cross state line sale on insurance . It has been the law for 70 years.
It appears to be a Trump requirement but there are two reasons you are right 1. rates will have to deal with unassessed demographics and 2. who regulates these policy provisions?
But we must reestablish demand and supply free enterprise competition to the health care system . But it works as private pay and all can’t get access— that is where we need the public option. There must be a safety net.