Off-Topic: Purchase Insurance across Stat
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Name:
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GoneFishin
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Subject:
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Purchase Insurance across Stat
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Date:
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9/15/2009 4:04:39 PM
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“For example, in Georgia only certain insurers are licensed to sell health insurance to residents. Obviously if Georgia residents were able to buy insurance from any insurance company anywhere in the U.S. for coverage in Georgia that would instantly increase competition, lower prices, etc. Just the way you and I can buy homeowners or life insurance from any insurance company we want to.”
Your comment pretty well summarizes what most people would say if asked the same question.
Insurance is regulated by each state. Ignorer to sell ANY type of insurance, a Company must file with the State Department of Insurance copies of policies and rates they will charge. Many states have specific requirements for policies issued in their state. The state must approve the policy before it can be sold. I live in Florida and the homeowner market is quite restricted. Many Companies choose not to sell homeowners in the state due to windstorm from hurricanes. As an example, the largest writer of homeowners in Florida, State farm, wanted a 47% rate increase. The state said no and State Farm is withdrawing from the state. So, the truth is you can only buy homeowners, auto, and life insurance in Georgia is if the Company has filed and had excepted by the State the forms and rates they want to use.
As to health, it is NO different from homeowners, auto, or life. The Company must file with the state forms and rates. Their policy form must include certain benefits that Georgia requires. The fact is it is all MARKET driven. A Company may decide they do not want to enter the Georgia market. Maybe, they do not have a sales force to sell it, maybe they can’t get the rates they want.... You are in a middle market 250 employees with multiple locations. There are Companies that like that market and they pursue it. Other companies want only large accounts and they pursue those target groups. It is all capitalism at work. It has nothing to do with across state lines.
Blue Cross sells only in the one state but that has nothing to do with regulation. They have their own territories and can not market outside it.
Medicare supplement programs have their benefits set by the Federal government. They are about 10 different plans but all Companies can ONLY sell those plans. Competition controls the rates and they must be approved by each state before the can be used.
It is very expensive and time consuming to enter a new market. What would you think of making all health insurance regulated by the Federal government so a Company has only deal with one entity to get a policy form approved for market? That may well be the only way you will open up the market across state lines.
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