Replies

>>>There he replace is replace with HSA and free market principles like competition across state lines.
...

Help me understand how this works. I live in Alabama. If an insurer in say Nevada has a cheaper plan, but all of the in network doctors and hospitals are in Nevada, how does this help me?

>>>There he replace is replace with HSA and free market principles like competition across state lines.
...

Help me understand how this works. I live in Alabama. If an insurer in say Nevada has a cheaper plan, but all of the in network doctors and hospitals are in Nevada, how does this help me?

Since we’ve been forced through time to monolithically think like that, I see your point. However, phone calls are free as are electronic communication...imagine if the insurance company in Nevada negotiated a reimbursement for a procedure in Delaware, where you traveled and broke your arm. That is how it should work, not be limited to hospitals and care providers only in that state...that is how prices remain non competitive and oligopoly like.

Google Insurance competition accross state lines. Here is something to start with.

http://www.ncsl.org/research/health/out-of-state-health-insurance-purchases.aspx

The plans that offer networks are only one type of plan, my least favorite, so your question is based on only HMO type plans which constrict the network to constrain their costs and your choices. These type of plans are notorious for rationing care. The biggest plus to opening the marketplace across state lines is that it would put some pressures on the states to decrease the requirements so that a greater variety of plans could be offered.

Major medical plans are cheaper and provide coverage that is an excellent bargain for young people, healthy people. A company could get volume on that concept for college students who might otherwise do without and provide a real service for a few $100 a year. Companies could offer plans targeted at the YMCA’s or the NRA and any other group. These are just examples because I don’t believe we can underestimate the ingenuity of the marketplace once innovation is freed from bureaucratic overreach. And people will decide which approaches win.