My health and dental and vision insurance is a national company. Fedvip is a nationalized umbrella why wouldn’t that work? I don’t understand. I think it’s a lobbying issue and K Street is dominating Congressional thought on national insurance coverage rather than state by state with defined borders for regions of insurance providers.
So are Prudential, New York Life, State Farm, Progressive, Aetna, etc.
They are still regulated at the state level, so every insurance policy they sell must meet the regulatory requirements of the individual state where it is sold. I believe most of these companies maintain separate subsidiaries in each state where they operate.
I have heard doctors on Sean Hannity show describing very low prices for their network. Competition works to lower prices.
The McCarran-Ferguson Act of 1945 stipulated that the insurance industry could not be regulated at the Federal level. This is because Congress determined that an insurance policy is a contract, not a commercial purchase ... and contract law comes under the jurisdiction of state courts.
it wont work because of how much power states have over insurance companies.
the reason insurance is so much cheaper in some states than others... is “all” about interferance by the states themselves.
If California forces all insurance companies that sell insurance in the state to offer free maternity care for instance.. and other states dont.. then insurance will be cheaper when purchased outside of California. So on the surface it looks like you would save money if you were able to buy insurance from another state. BUT that’s assuming the state would allow you to buy such insurance!
lol