Buying Across State Lines

Feb 19, 2016

  1. unic.consulting
    Offline

    unic.consulting Guru

    Posts:
    599
    Likes Received:
    0
    State:
    Massachusetts
    I was listening to the town hall discussions yesterday, and Trump once again brought up how much money would be saved if health insurance was sold across state lines. Does anyone that works in the industry actually believe this?
     
  2. scagnt83
    Offline

    scagnt83 Worldwide Expert of Everything

    Posts:
    7,020
    Likes Received:
    523
    State:
    South Carolina
    Buying across state lines is the answer every republican candidate has. Last night proved that the republicans have nothing of substance to replace Obamacare with.
     
    scagnt83, Feb 19, 2016
    #2
  3. kgmom219
    Offline

    kgmom219 What's Next?

    Posts:
    5,417
    Likes Received:
    490
    State:
    Texas
    THIS.

    And just "repeal" is not the answer. I don't care how bad it is.
     
    kgmom219, Feb 19, 2016
    #3
  4. yankee466
    Offline

    yankee466 Guru

    Posts:
    706
    Likes Received:
    52
    State:
    Georgia
    Darn it.....and here I thought an Idaho plan would solve my problem of overpriced Georgia plans. :goofy:
     
  5. yorkriver1
    Offline

    yorkriver1 Guru

    Posts:
    1,222
    Likes Received:
    31
    The main magic they seem to be promoting with the "across state lines" argument, as I have seen it explained, is to find the Delawares (states favorable tax wise to corporations) of insurance, that is, the states with the least mandated coverage regulations, so pared down "affordable" policies can once again be offered.
    This is also like someone from, say Fremont, Nebraska being wowed by the huge salary in San Mateo California for the same job they are doing. Uh, what about taking local costs into account?
    Given the whupping carriers are having, I would think they would be very skeptical of a band aid approach like selling across state lines. That could also result in a race to the bottom with who can sell policies with the least coverage, if set free to do so.
    If agents could sell add on's like we do now, if Medicare for all were instituted, might not be so bad.
    Other countries with government based care have extra coverage in the private market, or a choice of plans.
    I am sorry, but I think that we have built big profits into the medical system, and backpedaling when the stakeholders are wealthy will be a long road. We may be the chest of drawers thrown off the covered wagon to lighten the load while trying to make it over the ridge on the Oregon Trail of health reform.

    I have one more comment. At night, coming home from the capital city of our state, I see a billboard advertising the exact minutes of wait time in the ER of a local hospital. Last night it was 19 minutes. There's some economy for you, feel bad? Now you don't have to wait until morning, just come on down!
     
    Last edited: Feb 19, 2016
  6. AllenChicago
    Offline

    AllenChicago Guru

    Posts:
    8,434
    Likes Received:
    27
    State:
    Illinois
    medical providers are reluctant to accept a lot of plans that are based in the state.
     
  7. RayNY
    Offline

    RayNY Guru

    Posts:
    1,763
    Likes Received:
    5
    State:
    New York
    Almost every plan sold in my state is useless once you cross state lines. No providers, no network, nada.

    Not to mention, if anyone in any state can buy any plan, the price advantage would erode instantly. Everyone in a high-cost state would be incentivized to buy in a low cost state, raising the premium to the same level. Effectively, we'd just average the national cost.
     
    RayNY, Feb 19, 2016
    #7
  8. LGilmore
    Offline

    LGilmore Guru

    Posts:
    4,110
    Likes Received:
    172
    State:
    Washington
    What seems to be lost on the buy across state lines crowd is until the insured moves to an area with a lower cost of care, it's not going to matter.

    If 80% of rates are driven by claims, cost of care in a service area (zip codes) matter because if they get the 80% wrong, it comes out of the 20% left.

    In my state we have 5 rate zones for health insurance now. Different pricing in each based on the cost of care within those zones. I have actually had rates stay stable or go down as my most expensive county was paired with 4 counties that are much lower cost of care wise. So the bulk of my customers have had rates look really good.

    State lines don't matter, no insurance carrier with any sense is going to underprice their product for an area they sell in.
     
    LGilmore, Feb 19, 2016
    #8
  9. kgmom219
    Offline

    kgmom219 What's Next?

    Posts:
    5,417
    Likes Received:
    490
    State:
    Texas
    I hear this all the time. My standard response is (remember, I'm in North Dallas, surrounded by people in the Tea Party, who really do want Texas to secede)

    "That's a great idea! Some state like Delaware will win, just like they did with the credit cards. All the companies will write from there and use Delaware laws. Which is perfect, because I have always wanted the Department of Insurance in DELAWARE to tell TEXANS what to do"

    Crickets.
     
    kgmom219, Feb 19, 2016
    #9
  10. bill3173
    Offline

    bill3173 Guru

    Posts:
    2,456
    Likes Received:
    57
    State:
    North Carolina
    I would like the same MA/MS comp they have in Ca. Aside from that, I think the "sell across State Lines" proposal is about as well thought out as Obamacare.

    They sound like idiots every time they open their mouths, and talk about it like it's a simple and wonderful solution.
     
Loading...