The concept of selling health insurance across state boundaries may appeal to consumers and advocates; after all, it might promote competition and cut pricing, resulting in lower health insurance rates.
Nevertheless, this might have unanticipated results.
According to a new primer from the American Action Forum, some are concerned that states would take back key mandatory benefits and abandon basic consumer safeguards if borders open up. Low-risk customers who require these mandatory benefits may be lured to that state, which might have a detrimental selection effect on the marketplace.
According to the primer, some customers are paying for things they don’t want or need because of state restrictions that vary. For instance, states that provide drug rehabilitation may considerably raise the cost of a plan. While some customers may not want to pay for this expensive perk, others in nearby states may wish they could.
Competition in the insurance market may lower costs and make premiums more accessible, according to experts. For example, the National Bureau of Economic Research estimates that premiums for silver exchange plans would have been 5.4% cheaper if UnitedHealth had joined, as previously reported by FierceHealthPayer.
A more consumer-centric approach to healthcare means that this idea will provide patients precisely what they want: more choices at a cheaper cost.
