auditor0007
Gold Member
In theory, purchasing health insurance across state lines sounds like a great idea. I'm afraid in practice though, it would create a nightmare for many who chose cheaper insurance from out of state companies. I could be wrong, but it seems that the door would be open for much more fraud.
It is no different than investing in companies across state lines or banking across state lines.
The McCarranFerguson Act of 1945 is the only reason you can't buy out of state insurance forcing free market competition to drive down cost. This act exempts insurance companies from the interstate commerce laws. It makes it legal for insurance companies to engage in price fixing, racketeering & have antitrust exemptions.
You do realize that most of these companies already do operate in multiple states? They just operate as individual companies under a bigger parent company.