Friday, August 18, 2006
Herrick argues for health care choice
[Devon M. Herrick, "Inject competition into health care," The Baltimore Sun, 17 August 2006.]
NCPA scholar Devon Herrick writes in this recent column that interstate competition for insurance would improve the outlook for consumer prices:
Sponsored by Sen. Jim DeMint, Republican of South Carolina, and Rep. John Shadegg, Republican of Arizona, the Health Care Choice Act would increase access to individual health coverage by allowing insurers licensed to sell policies in one state to sell policies in any other state.
Why is this important? Under the current system, many localities have only one insurance product available, so the consumer is forced to buy an overpriced product or forgo insurance altogether.
The state markets are simply not competitive. Under current law, each state has the right to regulate health plans sold within its borders, which means 50 states have 50 sets of regulations. And because each state insurance market is protected from interstate competition, legislators mandate that insurers cover services that drive up premiums. Proponents often claim that a given mandate costs very little - but they add up. Some estimates suggest these mandates have priced as many as one-quarter of the uninsured out of the market.
The Health Care Choice Act would allow consumers to shop for individual insurance on the Internet, by phone or through a local agent. Residents of any state would be free to choose among policies from any insurer that offers them.
["Kansas Health Insurance Mandates Exceed National Average," The Flint Hills Center.
Matthew Hisrich, "State Mandates Reduce Insurance Affordability," The Flint Hills Center, 28 June 2004.]
NCPA scholar Devon Herrick writes in this recent column that interstate competition for insurance would improve the outlook for consumer prices:
Sponsored by Sen. Jim DeMint, Republican of South Carolina, and Rep. John Shadegg, Republican of Arizona, the Health Care Choice Act would increase access to individual health coverage by allowing insurers licensed to sell policies in one state to sell policies in any other state.
Why is this important? Under the current system, many localities have only one insurance product available, so the consumer is forced to buy an overpriced product or forgo insurance altogether.
The state markets are simply not competitive. Under current law, each state has the right to regulate health plans sold within its borders, which means 50 states have 50 sets of regulations. And because each state insurance market is protected from interstate competition, legislators mandate that insurers cover services that drive up premiums. Proponents often claim that a given mandate costs very little - but they add up. Some estimates suggest these mandates have priced as many as one-quarter of the uninsured out of the market.
The Health Care Choice Act would allow consumers to shop for individual insurance on the Internet, by phone or through a local agent. Residents of any state would be free to choose among policies from any insurer that offers them.
["Kansas Health Insurance Mandates Exceed National Average," The Flint Hills Center.
Matthew Hisrich, "State Mandates Reduce Insurance Affordability," The Flint Hills Center, 28 June 2004.]
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