Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Can health insurance be sold across state lines? Yes, it is done everyday and has been sold that way for years. That said, the policy sold MUST comply with state laws on the sale of insurance.
The State line issue is sort of a Strawman issue. Pricing for insurance like health, or home or auto is based on the cost of services provided within that state, county or zip code. That is how insurance works, without the government involvement. No insurance company in their right mind is going to undervalue their premium in an overvalued cost area. That just doesn't happen. So if you were to buy health insurance from a company in Utah, expecting Salt Lake City rates for your coverage in San Francisco, you'd be wrong. The Utah company would price your policy for the cost of care in San Fran, not Salt Lake.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Can health insurance be sold across state lines? Yes, it is done everyday and has been sold that way for years. That said, the policy sold MUST comply with state laws on the sale of insurance.
The State line issue is sort of a Strawman issue. Pricing for insurance like health, or home or auto is based on the cost of services provided within that state, county or zip code. That is how insurance works, without the government involvement. No insurance company in their right mind is going to undervalue their premium in an overvalued cost area. That just doesn't happen. So if you were to buy health insurance from a company in Utah, expecting Salt Lake City rates for your coverage in San Francisco, you'd be wrong. The Utah company would price your policy for the cost of care in San Fran, not Salt Lake.
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The State line issue is sort of a Strawman issue. Pricing for insurance like health, or home or auto is based on the cost of services provided within that state, county or zip code. That is how insurance works, without the government involvement. No insurance company in their right mind is going to undervalue their premium in an overvalued cost area. That just doesn't happen. So if you were to buy health insurance from a company in Utah, expecting Salt Lake City rates for your coverage in San Francisco, you'd be wrong. The Utah company would price your policy for the cost of care in San Fran, not Salt Lake.
The State line issue is sort of a Strawman issue. Pricing for insurance like health, or home or auto is based on the cost of services provided within that state, county or zip code. That is how insurance works, without the government involvement. No insurance company in their right mind is going to undervalue their premium in an overvalued cost area. That just doesn't happen. So if you were to buy health insurance from a company in Utah, expecting Salt Lake City rates for your coverage in San Francisco, you'd be wrong. The Utah company would price your policy for the cost of care in San Fran, not Salt Lake.