A different idea about heath insurance

[Cicero]

Cheaper Health Insurance
A little competition can go a long way.

Monday, July 25, 2005 12:01 a.m. EDT

Republicans haven't been getting much credit on the health policy front, despite their misguided 2003 drug entitlement masquerading as Medicare "reform." That could change soon. Last week the House Energy and Commerce Committee approved a bill that could dramatically reduce the ranks of the uninsured and spur general economic growth--all without costing a dime to the Treasury.

The idea behind the legislation, sponsored by GOP Representative John Shadegg of Arizona, is disarmingly simple: Allow Americans to buy health insurance from vendors in any one of the 50 states.

...

New York requires every insurance policy sold there to cover podiatry. Acupuncture coverage is mandated in 11 states, massage therapy in four, osteopathy in 24, and chiropractors in 47. There are an estimated 1,800 or so such insurance "mandates" across the country, and the costs add up. "It is always the providers asking for the mandate; it is never the consumer," says health policy guru John Goodman, who has testified before legislatures considering such rules.

...

How expensive? A 2004 study by eHealthInsurance.com found that a typical insurance policy ($2,000 deductible, 20% co-insurance) for a family of four could be had for as little in as $172 per month in a reasonably regulated locality like Kansas City, Missouri. But in New York that family's only option--managed care--would run $840 per month, and in New Jersey family policies run a whopping $1,200-plus. ...



http://www.opinionjournal.com/editorial/feature.html?id=110007011

Yeah, I know, its from the Wall Street Journal. But I do think the idea deserves serious consideration. After all, you can shop for car insurance nationwide, use credit card issued from banks headquartered in different states, why not health insurance?

Later,

[Nicholas D Wolfwood]

1. how about we just have the government provide the competition?

[Cicero]

5. I doubt that would be any better, and probably much worse.

Hell, FedGov cannot provide health care to our own disabled veterans. Look at the sorry state our VA hospitals are in.

Yeah, I know, there's a difference between having government provided health insurance vs. government provided health care, but honestly, there's not a very good record here.

Later,

[shoelace414]

2. So the party of states rights

doesn't care about states rights?

this is what happened to the CC industry. the CC issuiers had to follow state laws on usery (or whatever it is.. max interest rates) but at some point it happened that they on;y have to follow usery laws in their home state, which is why they're all in south dakota.

[AllegroRondo]

3. I agree

Something like this would see all the insurance companies incorporating in states with the most leniant laws for them, just like credit cards now going to South Dakota and Delaware.

[On the Road]

4. Insurance Premiums Are Higher in Some States

primarily because costs are higher.

I doubt the Kansas City insurance company can afford to offer coverage in New Jersey for $172 per month. If insurers were not allowed to vary their prices by state, they would either go bankrupt or the price in KC would go up dramatically. If they were allowed to vary rates by state, the system would gravitate towards something like it is today.

I don't see how this solves the fundamental problem.

[Sgent]

6. I agree

it also does nothing for uninsurability. I'm guessing the family mentioned above is 25 and 30 with 2 kids and no health problems and a sterilized mother (or no pregnancy or complications coverage), not exactly an expensive group to cover in any state.

In addition, how many NJ doctors are going to accept that KC insurance? Most facilities try to limit the number of contracts they have for a variety of reasons. The ONLY result I could see of this bill is a consolidation of the insurance market. That, by itself, does nothing to drive down health costs.

The current system is broken, this isn't how to fix it. They only way I would consider supporting this bill would be if it were gaurentee issue with no prior condition or age rating, and everyone was required to have health insurance, along with subsidies for low income ppl.