Interesting NYT article on the first phase of Obamacare—two government-sponsored-nationwide health insurance plans:
The federal standards will pre-empt state rules in at least one respect: the national health plans will automatically be eligible to compete against other private insurers in the new exchanges, regardless of whether they have been certified as meeting the standards of those exchanges.
The administration has promised to “work cooperatively with states.” But it is unclear whether the government-sponsored plans will have to comply with all state laws and consumer protection standards; whether they will have to comply with state benefit mandates; and whether they will have to pay state fees and taxes levied on other insurers to finance exchange operations.
Remember that selling insurance across state lines is one solution conservatives have offered up as means of providing better healthcare. Here’s a good primer from the National Conference on State Legislators on states testing the water to allow cross border health insurance sales, but the “idea of states allowing free-market sales across state lines, outside of federal regulation is an untested proposition,” which is “especially true during the transition period prior to the effective dates of the federal reforms spelled out” in Obamacare.
Mind you the NYT article points out that a left-leaning consumer group expresses concern that “multistate plans are exempted from some consumer protection standards,” while the Heritage Foundation says this “will become the robust public option that liberals always wanted.”
I guess I’m having trouble understanding why people think health insurance across state lines was a bad idea, at least until the government decided to get into the business.
