Currently the healthcare reform act does not allow purchasing insurance from out of state carriers (or across state lines). Why are the republicans for this and the dems against is it overall? It seems like it would be a good thing? What are the arguments for and against it?
Currently, health insurance is regulated on a state by state basis. A policy you buy in PA, doeson't comply with NY laws. Because of that, PA insurance is much, much cheaper - NY health insurance costs about DOUBLE, due to the regulations in that state.
SO. There are two bottom lines:
1. You'd need to start another bureauocracy - a national insurance regulation bureauocracy. Mongo budget bucks. and
2. it's not going to work the way people THINK it will work. If you are in NY, and want to cut your health insurance in half by buying a PA policy, well, if the PA policy has to comply with NY coverage, they'll have to INCREASE THE PRICE. In other words, EVERYONE'S insurance cost will go up, maybe a lot. In NY, you can't refuse to issue a health insurance policy - so there's some inherent "adverse selection" issues there. That, also, will increase overall costs.
Not all companies sell health insurance in all states. There's a reason for that - some states are very insurance un-friendly. If you're required to pay for someone's infertility treatments, it's going to raise EVERYONE'S prices.
So. Back into it. WHY EXACTLY is being able to buy health insurance across state lines, a good thing? COST isn't a valid factor - because once you can, prices will rise. And I can't think of any other good reasons, justified by billions of dollars for another bureauocracy.
I think what you're asking is, why can't you buy a policy in Ohio but say you live in Kentucky?
The biggest problem is that each state has it's own laws concerning insurance,
Whether its' home, auto or health, each state establishes how each group operates in their state,
Many national insurance companies have to setup an affiliated company in your state that operates according to those laws,
It would be a good thing. It'd bring costs down.
Democrats are against it because it would actually work.