Selling Health Insurance Across State Lines Is Unlikely to Lower Costs or Improve Choice
<p>In the wake of the failed legislative effort to repeal and replace the Affordable Care Act (ACA), the fate of another of President Trump’s health care priorities is unclear: giving Americans the option to purchase health insurance across state lines, which the administration believes will increase competition and bring down costs.</p><p>In a new <em></em><a href="/blog/2017/selling-health-insurance-across-state-lines-unlikely-lower-costs-or-improve-choice"><em>To the Point</em></a> post, Georgetown University’s Sabrina Corlette and Kevin Lucia explain that the administration already has the authority to work with states to create standards for cross-state sales of health plans. More important, interstate sales, they say, are unlikely to increase competition. That’s because the primary barrier for insurers entering a new market is the cost of building up local provider networks.</p>
<p>Also read our companion <a href="/publications/explainer/2017/apr/essential-facts-about-health-reform-alternatives-allowing-insurance">explainer</a> on cross-state sales to learn how they are likely to affect the market for individual insurance and the quality and cost of coverage.</p>