That's correct. The 10th Amendment gives a stats the power to regulate insurance companies doing business within its borders.
Trump wants to eliminate these restrictions. Any insurance company should be able to offer services in all 50 states. When you have 250 companies vying for your business, it’s far better than one or even ten.
They can vie for my business now. All they have to do is get approval to sell in Missouri.
But say Trump chooses to ignore the 10th Amendment and passes the law you want. In your scenario of a company in New Jersey not being able to sell in California, there is zero incentive for the company to want to sell a policy in California and zero incentive to buy from the company in New Jersey. And that is because of the way the industry is set up.
Insurance companies control costs by establishing networks of doctors, pharmacies, hospitals, and the like to set the rates the insurance company will pay. Without that agreement then the insurance company has to pay whatever the doctor or hospital charges. They encourage policy holders to use in-network providers by paying a larger percentage of the bill and setting lower deductibles and co-pays. I benefit because my out of pocket expenses are lower.
In your scenario, the insurance company in question does not currently do business in my state so they have no network. They have no way of knowing how much they will have to pay on my claims. They have no cost protections. For the policy holder, every doctors visit they make and every claim they file is out of network so they will pay a higher percentage of the cost. It makes no sense for the company to sell the policy, which they will never make money on. It makes no sense for the customer to buy it, and ensure that they pay more.
Government providing an tax deduction incentive could be termed a government subsidy, but it’s actually a way for you to purchase your medical care for less money.
Isn't that true of any subsidy? Obamacare allows people to buy insurance by subsidizing their premiums. This is no different.
May not be..., that’s what you wish to rest your objection on? You mean that you would rather pay 100% of your health insurance without a tax deduction? Okay, well, just refuse to take the deduction. No problem.
No fear. I get terrific insurance through my employer. I'm not asking the government to pay for it.
Why should any state restrict business within it’s borders?
Do you support that in any other business segments?
Nah, there’s no reason to restrict insurance business.
Each year insurance companies siphon off hundreds of millions of dollars off health care payments to institutions. Translation: Those hundreds of millions of dollars siphoned off the health care dollars, do not cover ten cents worth of services. Don’t try to feed me the schlock that insurance companies are some magnificent benefactors to the health care industry. They are pariahs that limit what services people can have access to.
They also force hospitals to operate on a very thin margin. All sounds well and good, until you think about what hip joint you’ll get, what rehab services you’ll get, how clean the facility will be when you’re in the hospital, what surgery procedures will be used because the institution was forced into it by insurance companies that care more about their profits than the health care provided to their policy holders.
With lowered restrictions, other health care networks will be set up. Insurance companies are just like any other business in that they will provide a different package that hospitals and policy holders will want.
No hospital is going to turn down a better offer, if for one hospital or 50. No insurance company has an absolute lock on a hospital’s business, unless it’s a Kaiser or a captive audience like a Kaiser.
Obamacare payments are deductible? Since when?
Your employer has a stake in the change too. This new system should help them obtain insurance for you at a lower cost.
Do you support a Capitalist free enterprise economy? Are you doubting a free enterprise approach will work?
Your objections to all this sound as if they were torn right out of a union magazine.