Quote:
Originally Posted by Szymon
Can anyone explain to me why insurance companies cannot operate out of state? I only just heard of this today. I think regulations like these, that restrict the options for people to find better health insurance is a huge problem.
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The reason why simply breaking this boundary isn't so simple, is because there are a lot of state laws that requlate health insurance companies as-is. So what will end up happening if this limitation is simply dropped, is that health insurance companies will go to states that have the most appealing laws to them (or even worse, go over seas), and sell packages that may be considered illegal by the other state's laws 'Across state lines'.
Its not illegal for a company, even now, to exist in more then one state. Its just illegal to sell a plan across state lines due to the different variations in laws from state to state.
There's no easy fix for this, that's for sure.