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Author: Hawkwin Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 4314  
Subject: Re: State lines Date: 10/12/2012 4:48 PM
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Wouldn't this be a problem for many other goods and services as well? I don't see "jurisdiction" acting as a barrier to free trade among the states in most other areas.

No. A Toshiba model 1320 (made up model) sold in Michigan at Best Buy is the same as the Toshiba model 1320 sold at Walmart in Florida. We don't have state TV commissions that require tvs sold in Michigan have 50,000 pixels per inch while Florida requires that tvs have 52,000 pixels per inch.

That is what we have with state insurance commissions.

That is why Medicare Supplemental plans work so well. The Fed mandates a specific level of coverage per "letter" plan and regardless of which state or from which company you buy a "G" plan, they will all have a specific level of mandated coverage.

This is a rationale employed by those who favor restrictions on interstate health insurance. But it doesn't hold up to common sense. If an insurance company and policy meets the standards of one state, why shouldn't another state recognize that company as legitimate?

Because they don't! Why don't you ask the New York State Insurance Department why this is?

Here is the site that has the requirements to file to sell insurance in NY: http://www.dfs.ny.gov/insurance/ihealth.htm#fileny

Each state has a different process. What in the world makes you think the industry wants these restrictions?

To limit competition.

From themselves? Come on, man. That is like suggesting the auto manufacturers would want each state to create their own conflicting emission standards to make it more expensive for EVERYONE to participate in the market - all to limit competition.
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