EVP Operations, Meridian Benefits consulting, New York
Outside of the state by state variance in regulations, health insurance is driven by doctors that sign up to contract with the insurance company to receive payment for services given to their patients. Most insurance companies don't have the resources to manage networks hundreds of thousands of doctors across the country.
All this means that if you live in Texas and buy insurance from a company in Ohio, you won't be able to see a doctor that is contracted with the carrier so you won't be covered for your doctor visit.
That's a great question! The main reason is that the cost of your coverage is very much based on the providers and services offered in your area. The costs of services in a largely rural state will be much different than those in a heavily populated, more urban state. Most plans are based on using those local service providers, and they get paid accordingly also. Thanks for asking!
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All this means that if you live in Texas and buy insurance from a company in Ohio, you won't be able to see a doctor that is contracted with the carrier so you won't be covered for your doctor visit.