The Debate Over Selling Insurance Across State Lines

Kaiser Health News writes about this issue:

Congressional Republicans have proposed the concept in the past and Sen. John McCain, R-Ariz., embraced it as part of his 2008 presidential campaign. Advocates – including some insurers and small business groups – say it would give the more than 17 million Americans who buy individual coverage a greater choice of plans and the possibility of lower prices. (The measure does not apply to the 159 million non-elderly Americans who obtain insurance through their employers.)

But critics — including consumer watchdog groups and the National Association of Insurance Commissioners — say the provision would erode many state government consumer protections, leave policyholders with inadequate coverage and could actually lead to higher premiums for some people.