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Perils of Health Insurance Sold across State Lines

By Cheryl Fish-Parcham,


Some policy makers have proposed allowing health insurance companies to sell plans in states where they are not licensed. This would be problematic for consumers because insurance companies would be able to undermine state consumer protections. By choosing the state with the fewest regulations as its primary location, an insurance company could sell plans with very limited benefits and high costs to consumers in other states.

Find out why it’s a bad idea to let health insurance companies sell policies across state lines and how the Affordable Care Act will prevent insurance companies from undermining consumer protections.