Health Coverage Across State Lines Act
Summary
The Health Coverage Across State Lines Act aims to amend the Public Health Service Act, allowing health insurers to sell individual health insurance coverage across state lines under a cooperative governing framework. Insurers would designate a 'primary state' whose laws govern the policy, while other states ('secondary states') would have limited regulatory authority. This is intended to increase competition and potentially lower insurance costs.
Expected Effects
The Act could lead to increased availability of health insurance options, as insurers can offer plans in multiple states under a single regulatory framework. However, it may also weaken consumer protections in secondary states, as their laws would be preempted by the primary state's regulations. The GAO would study the effects of the amendment.
Potential Benefits
- Increased competition among health insurers, potentially leading to lower premiums.
- Greater choice of health plans for individuals, especially in states with limited options.
- Reduced administrative burden for insurers operating in multiple states.
- Potential for innovation in health insurance products and services.
- May lead to more affordable healthcare options for some individuals.
Most Benefited Areas:
Potential Disadvantages
- Weaker consumer protections in secondary states, as primary state laws would govern.
- Potential for insurers to choose states with lax regulations, leading to a race to the bottom.
- Risk of inadequate coverage for specific healthcare needs in secondary states.
- Increased complexity in navigating the health insurance market.
- Possibility of destabilizing state insurance markets.
Most Disadvantaged Areas:
Constitutional Alignment
The Act cites Article I, Section 8, Clause 3 of the US Constitution (the Commerce Clause) as its constitutional basis. This clause grants Congress the power to regulate commerce among the states. The Act argues that health insurance is part of interstate commerce and thus subject to federal regulation. However, the extent to which the federal government can preempt state insurance regulations under the Commerce Clause is a complex legal question.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).