McCain’s Interstate Health Insurance Proposal
Merrill Matthews, executive director of the Council for Affordable Health Insurance (CAHI), recently penned an article supporting legislation sponsored by Arizona’s John Shadegg. Known as the Health Care Choice Act. The legislation is backed by Senator McCain and essentially would allow residents of Massachusetts for example to purchase a Colorado health insurance plan if they thought it would better fit their needs. The thought behind this policy is that there would be more competition in local markets, which would keep health insurance premiums in check, in addition a health insurance shopper could avoid state mandates that require certian benefits that the consumer has no interest in and doesn’t want to pay for.
According to the article;
1) Many people purchase individual health insurance and subsequently end up moving across state lines and maintaining their individual health plan,
2) Many small businesses who offer health insurance through state-regulated health insurers have employees who live in other states, and
3) Many college students stay on their parents health plan, and go to a university in a different state.
The three interstate health coverage situations mentioned above have led to almost no documented health coverage or health care issues. Despite this fact, Matthews speculates that the reason Obama is against a policy such as The Health Care Choice Act, is that:
1) Obama doesn’t believe a true “market” can work in health insurance and he believes it is necessary for the government to make sure patients are getting the care and coverage the government thinks is appropriate and what the government considers affordable health insurance.
2) Obama preferres benefit-rich health insurance policies that cover virtually everything, but are also very expensive. His plan to address health insurance affordability is to put in place price controls and regulations on health insurance companies and drug companies, and have taxpayers to subsidize the rest.
A health insurance marketplace that leans towards deregulation resulting from the Health Care Choice Act seems like it would accomplish much in terms of providing health insurance consumers with more options, and affordable prices. However this plan, not any other health care reform plan will solve the all health care problems for the 40+ million uninsured Americans in the country. That being said, it seems like the best option at this early juncture.
