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Author: erikinthered100 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 4332  
Subject: Re: State lines Date: 10/10/2012 4:16 PM
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Not an expert but I think that one of the arguments that states make is that they need to protect consumers by regulating insurance companies to make sure that they have enough assets to pay claims. If you, as a WA resident, buy a policy from a company that can only do business in WA, you know it will be able to pay your claims. If you buy a policy from a Florida company, who knows if it will be there when you need it? The state of Florida will not be looking to make sure its companies can cover claims in other states. It would be burdensome for states to have to monitor the financial health of insurance companies based in other states.

I don't know if that's a good argument or just an excuse for states to get a stranglehold on the insurance business and make it do stuff it would never do if freedom prevailed -- like force us - clean-living folks in our mid-60s - to pay for maternity and addiction treatment coverage that we will never have any use for.


I agree. I think that "consumer protection" is the given rationale. But it doesn't hold up under scrutiny. Other goods and services are freely bought and sold among the states. And the consumer is beter off when this occurs. The consumer has more choices and is able to shop for the most appropriate and best goods or services. Quality and prices are actually much better due to greater competition. In other words, in the name of "consumer protection," the government is actually screwing the consumer. It does so to serve special interests including health insurers and those offering certain mandated services.

Here's are links to some numbers:

http://healthinsurance.about.com/od/healthinsurancebasics/a/...


In 2009, the average premium for a family nationwide was $6328. In New York, the corresponding price was a whopping $13296 and in Iowa, the corresponding price was $5609.

http://www.dailyfinance.com/2011/08/12/7-best-and-worst-stat...

In 2010, the average monthly premium per person was $215. This varied from a high of $437 in Massachusetts to a low of $136 in Alabama.

It appears that there is a possibility of huge savings from deregulation of the health insurance market to allow purchase across state lines.

Why wasn't this included in the so-called "health care reforms" in Obamacare????

Why??? Massive incompetence or criminal corruption???




dave
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