Quick fix proposals to address rising health insurance costs, such as the across state line plans, have failed because they do not address the true drivers of health insurance costs or the complexity of the insurance marketplace.
Washington, D.C. (PRWEB) October 03, 2012
An exemption from state regulations to allow insurers to sell insurance across state lines is the cornerstone of many conservative proposals to repeal and replace the Affordable Care Act. Proponents state that allowing insurers to circumvent state laws and consumer protection provisions to sell insurance plans across state lines will bring down health insurance costs and increase consumer choice.
A report released today by the Georgetown University Center on Health Insurance Reforms found no evidence that across-state-line insurance initiatives actually bring down costs or increase consumer options. In fact, the report found such proposals actually put consumers at risk.
“Quick fix proposals to address rising health insurance costs, such as the across- state-line plans, have failed because they do not address the true drivers of health insurance costs or the complexity of the insurance marketplace,” said Sabrina Corlette, Research Professor and Project Director of the Center on Health Insurance Reforms at Georgetown University.
The Georgetown University researchers looked at across-state-line laws enacted in Georgia, Maine and Wyoming. They found that those initiatives did not result in a single insurer entering the market or the sale of a single new insurance product. In addition, states that examined the feasibility of these laws concluded that they put consumers at risk by undermining state-based protections.