Wednesday, September 18, 2013

Excellent comment alert

There is a new conservative plan to replace the Affordable care Act. One piece of this plan is to:
For example, allowing insurers to sell policies across state lines would invite a “race to the bottom.” In time, all insurance would originate from states with the least regulation. The policies will be cheaper. But they’ll also be skimpier. They’ll be great if you’re young, healthy, or wealthy enough to afford to fill in the coverage gaps. They’ll be terrible if you are older, have a chronic condition, or, again, if you’re low income.
These are all legitimate problems.  But the one that actually seems the most salient is in the comments:

I cannot understand why conservatives support turning health insurance into interstate commerce, which would then be subject to federal regulation. You would think they would prefer to leave it in the hands of state insurance regulators. 
This is actually a really good point.   If you put health insurance into the national market (and not a state by state individual market) then it is, by definition, interstate commerce and the role of the federal government as a regulator is clearly derived. 

This seems to be the opposite of a small government solution. 

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