The Dismantling of ObamaCare - Ongoing Updates.

[Yagents]

If you don't understand the process that must occur, or the limitations Repubs are against to repeal and replace the law, listen to the first 3 minutes of Paul Ryan's prez:

Paul Ryan's TED talk ignores conservative split on GOP health care bill - CNNPolitics.com

 

[scagnt83]

If you don't understand the process that must occur, or the limitations Repubs are against to repeal and replace the law, listen to the first 3 minutes of Paul Ryan's prez:

Paul Ryan's TED talk ignores conservative split on GOP health care bill - CNNPolitics.com

Very interesting. One key phrase I noticed was "increasing regulatory competition" when talking about selling across state lines. Very interesting angle on that subject if you start to think about it.

If that trickles down to other lines of insurance, such as life or annuities, it could be a HUGE change for our industry.

 

[bluemarlin08]

How would selling across state lines lower costs?

 

[Justin Bilyj]

How would selling across state lines lower costs?

Selling insurance across state lines won't help | LifeHealthPro!

 

[VolAgent]

How would selling across state lines lower costs?

Easy. When you buy that cheap plan out of Iowa or where ever with in network only, you have to go there for treatment. So basically you'll never see a claim for all those people in California or New York.

 

[Ann H]

Easy. When you buy that cheap plan out of Iowa or where ever with in network only, you have to go there for treatment. So basically you'll never see a claim for all those people in California or New York.

hahaha. Exactly, VolAgent, exactly.

In the short-run, it won't change costs at all.

In the long-run, it will cause:
* race to the bottom of the barrel for states with lowest mandates
* race to the bottom of the barrel for states with lowest taxes, fees, and regulations for carriers
* normalization of premiums because "across state lines" suddenly means "national coverage"

But it's a non-starter anyway, because this market will implode before reaching "the long-run".

 

[bluemarlin08]

hahaha. Exactly, VolAgent, exactly.

In the short-run, it won't change costs at all.

In the long-run, it will cause:
* race to the bottom of the barrel for states with lowest mandates
* race to the bottom of the barrel for states with lowest taxes, fees, and regulations for carriers
* normalization of premiums because "across state lines" suddenly means "national coverage"

But it's a non-starter anyway, because this market will implode before reaching "the long-run".

So why is the President and GOP tauting the advantage of buying across state lines, it really makes me wonder where they get their "facts" and makes me wonder about everything else they propose, they still don't get it. They aren't talking about what will happen to premiums, do they really think their plan will dramatically lower premiums.

 

[RayNY]

How would selling across state lines lower costs?

They actually mean "file", not "sell".

The idea is, they'll allow companies to file in any state they want. So long as it complies with the regulations of the state it's filed in, it's eligible in sale in any state.

So, a company here in NY, which has a ton of regulation, can file in a state where there's far less, and sell it in NY even though it doesn't meet NY regs.

Just as a for-instance, NY is community rated. No age bands, no smoker surcharge. A company focused on young members can file in an age banded state and have very good pricing for young non-smokers compared to the community rated competitors.

 

[kgmom219]

Easy. When you buy that cheap plan out of Iowa or where ever with in network only, you have to go there for treatment. So basically you'll never see a claim for all those people in California or New York.

Exactly.

I think I'm going to start an insurance company in...Montana? Get all the docs required by law in Helena or whatever. Only sell it in states that touch the Atlantic Ocean.

And Blue...they don't get it. At all.

 

[somarco]

If that trickles down to other lines of insurance, such as life or annuities, it could be a HUGE change for our industry.

Other than premium taxes, what state demographics and mandates impact life and annuities? Health insurance premiums are driven by health care costs and expected claims. There are definite geographic differences in health care costs from one state to the next and even within a state.

If NY or CA residents are allowed to buy health insurance from a lower cost state (pick one) then how long before residents along the coast can buy homeowners from a low cost inland state?

How would selling across state lines lower costs?

It won't.

Apparently folks in DC have been listening to left wing nuts that promote buying and selling health insurance across state lines as a way to achieve lower premiums.

Georgia passed a law 3 or 4 years ago allowing residents to buy health insurance across state lines. No carriers have yet filed to sell their cheap Montana policies in GA.