In a letter to House Speaker Dennis Hastert (R-IL), Rep. John Shadegg (R-AZ) and many health insurers and other businesses voiced their support for a bill that would allow consumers to purchase health insurance plans from any state in the nation. Currently consumers must purchase insurance in-state. But each state has a separate set of insurance mandates that drive up the cost of coverage, making insurance too expensive for some.
If the bill becomes a law, consumers could buy insurance from a state that doesn't mandate coverage for areas they don't need. "[I]f consumers do not want expensive 'Cadillac' health plans that pay for acupuncture, fertility treatments or hairpieces, they could buy from insurers in states that do not mandate such benefits," Devon M. Herrick of The San Francisco Chronicle notes. It's an interesting idea, being yet another experiment to determine the best method for lowering healthcare costs. It remains to be seen, however, how such legislation would affect provider-patient relationships. Will regional managed care plans change their provider contracting strategies if they're competing with multi-state plans? Will national plans focus more on contracting with regional and national provider networks? We may find out.
- check out this article in The San Francisco Chronicle