• Reader Question – Isn't a national plan just allowing insurance across state lines?

    An observant reader asks:

    The new direction features a system of national insurance plans run privately but administered by the Gov’t. Is this akin to opening up the purchase of health insurance across state lines? How will the flaws in that idea that you’ve described over the last few months be avoided?

    Excellent question.  It’s not the same thing.  The difference between this and what Republicans have proposed is the deregulation.  See Republicans want to allow insurance companies in states with few regulations to be able to operate in states with lots of regulations (but without observing them).  This will destroy the risk pools in states with regulations.

    Since the bill creates federal regulations which are much stronger than those seen in most, if not all states, the problem of crossing state lines isn’t as much of a big deal.  Everyone will have to play by the same rules no matter what state they are in!

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