Comments on: Why Buying Health Insurance across State Lines might Not be a Good Idea

By: doug

doug — Thu, 11 Mar 2010 13:16:24 +0000

If the goal of purchasing insurance across state lines is to reduce the cost of health care, then why not end all regulation of health care. No licensing in the states or federal jurisdictions. Eliminate medical malpractice suits and you have a perfect world. I’l quit fixing lawnmowers and start doing orthopedic surgery.
Or is this issue one of replacing state laws regulating insurance with a federal beurocracy to do the same thing. If that is the case then why not one national police force. One big school district. One highway department. Interesting that the proponents espouse smaller federal government.

By: Roland

Roland — Thu, 04 Mar 2010 21:48:53 +0000

Every law has a reason. Laws are passed in order to protect some” interest” and that “interest” is hardly ever what’s best for the people. Lately , I’ve been noticing comments from numerous investigative reporters saying ,”When things don’t make sense, follow the money”. I really don’t think Doctors would really care if they have to deal with insurances across state lines, especially if those insurances are in bordering States. I truly believe the main objection comes from Lawyers. Think about it. It is relatively easy for lawyers in State “A” to go after an insurance company from the same State “A”; but if the insurance company is from any other State, they would have to be licensed in that State or tie in with a law firm from that State and split the commision. A vast number of our elected politicians are Lawyers and are not to anxious to do anything to change the status quo. Just a thought.

By: doctor house

doctor house — Thu, 11 Feb 2010 06:39:08 +0000

Some very good points but as always, there must be peer-reviewed scientific studies to back up any statements.

By: GM from MN

GM from MN — Mon, 08 Feb 2010 02:40:32 +0000

Jerry Hawthorne Says:

October 17th, 2009 at 1:43 pm
Doctors waste enough time now fighting with the few insurance companies that are in their state. Add all the different regs. from many other out-of-state companies and the will have to hire more office staff to deal with them. And guess who will eventually pay for that?

—————–

I think that purchasing across state lines may beef up competition like the advocates of it says. However when you examine the average profit that insurance companies get from health insurance it only amounts to about 4-5% from personal research. So if we eliminated all the profits it could amount to about 4-5% in lower premiums.

I think Jerry’s tidbit is an EXCELLENT one. It estimated that Adminstrative costs amount to around 7% of health insurance. And mixing up the market with more and more paperwork may in fact back fire and cause adminstrative costs to skyrocket.

http://www.kaiseredu.org/topics_im.asp?imID=1&parentID=61&id=358

By: Ed

Ed — Sat, 30 Jan 2010 00:23:13 +0000

Aren’t insurance companies allowed to sell coverage across state lines now? Isn’t the Republican mantra just an effort to get congress to exempt insurance companies from state laws? Aren’t health insurance companies exempt from all anti-trust laws now? Educate me, someone.

By: Robert Farley

Robert Farley — Fri, 22 Jan 2010 18:46:20 +0000

I’m fortunate to have good insurance,but I see people in my state(WV) that are forced to go to hospitals here,if they go out of the state,the cost is astronomical.I agree with the person above that stated that when one buys insurace across state lines there needs to be some protection for people with pre-existing conditions.There also needs to be choice in where a patient can go. To get quality care we’ve got 2 choices and that is limited,Charleston Area Med Center and WVU, all the rest are mediocre at best.I could already see the Govenor trying to consolidate all the healthcare in the state to be put under his school(WVU).He was trying to get his ducks in a row for Nancy and Harry’s healthcare plan

By: John

John — Sun, 10 Jan 2010 15:24:50 +0000

Emma, costs are high now because “young, fit, and healthy” do not buy insurance simply bacause it is too expensive. Buy increasing competition prices drop. When prices drop more of the “young, fit, and healthy” who previously did not pay for health insurance will. More “young, fit, and healthy” buying health insurance provides the insurance companies with a far larger base upon which to spread the “risk” associated costs. In other words, when an insurance company has a larger base of healthy members against which they can allay risk costs then they will be more likely to insure those patients they consider to be medium or high risk. It’s basic economics really which I’m assuming is not taught in biology classes. So long as an insurance provider from California choses to cover the mandated illnesses and conditions of New York they should be able to sell in New York. Competition reduces cost and improves quality, period the end. We’ve seen this in every industry that has been deregulated in the past 15 years.

By: AmericanP

AmericanP — Tue, 05 Jan 2010 17:21:14 +0000

The author is simply pointing out possible implications of such a system. She clearly states that the system could work, but that we need to be aware of the risks. I also agree with Jerry Hawthorne that doctors and staff have ENOUGH complicated messes to deal with the way things are right now. Add in tons of out of state plans and doctors will have to hire an army of staff to deal with it. And like he said, that cost will eventually be passed on to clients.

This is most true for general practice doctors who are already paid way below market value in terms of the amount of school and debt they have to deal with to become a doctor in the first place. Many docs cannot afford to take any pay cuts (the millionaire doctor is a myth, that doesn’t happen anymore unless your a high end surgeon!) Also, don’t you want your docs to have more time being a better doctor and spending time with you, rather than having to deal with insurance companies all day?

The bottom line is that we need a public option. Will it be expensive, you bet, but we are just going to have to budget for it. Tons of money is already wasted in admin costs as it is, so part of cost will be balanced out right there.

Look at the life expectancies in other nations, look at their stress levels as compared to the U.S. A lot of stress in this country relates to the uncertainty and the greed of the current health care system. I’m a full time student right now and even being a healthy young adult I literally have a part-time job dealing with insurance companies and getting them to pay for things that should clearly be covered. The madness has to stop, we need change, and I don’t think interstate healthcare is going to bring about the changes we need.

If you work for a great company with a “platinum” healthcare plan then you are essentially living in a bubble sheileded from the sh– the rest of the country has to deal with. I understand why some people want change, if you’re lucky enough to have a great plan that’s awesome, and those plans should be there for those that have access. But it’s simply not fair for other hard working people who are not dirt poor or rich. Middle class healthcare in the country sucks compared to other developed nations.

By: Mike

Mike — Mon, 30 Nov 2009 21:39:06 +0000

RS–is correct! Each of us, as individuals, not the collective, have the power to fix this. The more government is involved, the more mandates, the higher the cost in the end.

If this current legislation passes, prepare to find new doctors, because many currently practicing will quit, guaranteed. Then remaining doctors will be flooded–prepare to wait for long periods of time. And oh yeah, fewer physicians, will drive the price up even faster–remember, it’s supply and demand.

By: RS

RS — Sat, 14 Nov 2009 00:12:05 +0000

Hey, if you want it changed, then get off this and contact a Senator, or Rep and tell them you want it changed. Talking about it ain’t gonna fix it! The States are following Fed Law, it has to be changed at the Fed level to change at the State level. If everyone really wanted “Change”, then get up and do something about it. The only way we the people are going to get our “representatives” to vote the way we want them to vote for us is to tell them. It’s the all mighty dollar, they aren’t there because they just want to help us. Most of them couldn’t hold down a real job.