Crossing State Lines

"Why can't people in New Jersey buy health insurance available to residents of say, Pennsylvania?" That's the question Merrill Matthews, director of the Council for Affordable Health Insurance recently asked in an editorial.

For a variety of reasons, individual health coverage (as opposed to group health coverage) is the growth segment with the health insurance industry. Health plans are increasing their offerings, and are growing more competitive in this market. Employers continue to tighten eligibility requirements for group coverage, causing more employees to seek individual coverage. A number of small employers have opted to arrange for their employees to obtain coverage via the individual market instead of through the small group market, as in many situations, the individual market has more competitive premium rates or options.

But as health insurance is regulated primarily through the states, access to individual health insurance is limited to plans filed in the individual's state of residence, and the regulations governing such insurance vary widely by state. Last month Rep. John Shadegg (R-AZ) introduced the Health Care Choice Act of 2007 aimed at allowing interstate commerce in health insurance plans while still maintaining the states basic responsibility to regulate such plans. Similar legislation was previously introduced by Representative John Shadegg in 2006, but a variety of interest groups are pleased to see the continued efforts towards providing expanded options that would be available to the uninsured to obtain insurance.

Here's what the Council for Affordable Health Insurance (CAHI) had to say about the legislation in a press release:

"The message for the uninsured is 'Hold on, help is on the way!'" said Dr. Merrill Matthews, director of the Council for Affordable Health Insurance (CAHI). "Millions of Americans are uninsured because many states impose costly mandates such as guaranteed issue. The Health Care Choice Act will give uninsured people trapped in the high-cost states the ability to buy affordable coverage already available to citizens of another state. Finally, legislation that brings real competition in health insurance," Matthews concluded. The legislation would require that the state law where the policy is filed (primary state) would apply both in that state as well as any other state (secondary state). The Health Care Choice Act would provide individuals with a wider range of health insurance options at varying price ranges. Consumers would have the choice of how much protection they need and can afford. "In an age where commerce is conducted widely over the Internet, it makes sense that individuals wishing to purchase health insurance should be afforded this opportunity for choice and lower costs," Said Angela Hunter, CAHI federal affairs director. "Where you live should not determine whether or not you can afford a health insurance policy."

The Association of American Physicians and Surgeons issued the following statement in support of the legislation: "The Association of American Physicians and Surgeons believes this is a crucial piece of health care reform. Right now, millions of patients are held hostage by their states' regulations and insurance mandates that inflate premiums for coverage they don't want or need. This plan puts patients back in the driver's seat by allowing them to shop for insurance medical insurance just like they do for other products - searching across the country for the best price and fit for their needs. "This bill would also eliminate the need for taxpayer-subsidized SCHIP coverage for many families well above the poverty level who could afford insurance if they were not held hostage by states with massive mandates and regulatory costs that drive up insurance premiums, such as New Jersey. This single act will increase the buying power of millions families without burdening taxpayers. Simply, doctors support the Health Care Choice Act of 2007 because it puts patients in charge of their medical care and choice of doctors - and that's always better for patients."

You can review full text of the bill (H.R.4460, Health Care Choice Act of 2007) at:

http://thomas.loc.gov/cgi-bin/query/z?c110:H.R.4460