Musicmystery
Posts: 30259
Joined: 3/14/2005 Status: offline
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quote:
ORIGINAL: willbeurdaddy quote:
ORIGINAL: Musicmystery quote:
ORIGINAL: willbeurdaddy quote:
ORIGINAL: Musicmystery Look, here's the thing. It's clear from this and other posts that you aren't aware of the past history here. It makes discussion pointless, as you're taking blind shots at things you obvious don't know anything about. Start there. We have a long history of regulation. We've also had disastrous deregulation. You obviously aren't up to speed on that history either. You've repeating blind abstractions. Perhaps you've heard of states' rights? There is every sensible reason why citizens in one state can choose differently than citizens in another. We call it the U.S. Constitution. Perhaps you've heard of it. Slogans, kid, aren't gonna do the job. Stop repeating them, and start reading your history. Yeah, youll cry states rights until its something you like and then youll plead the ICC. FYI, health insurance restrictions on interstate sales has nothing to do with states rights. Its purpose was to allow smaller companies the ability to grow and compete with established giants like BC/BS. It was fine in the early days of the business, but all it does now is restrict needed competition. So read your own damn history. Nope. I'm pointing out an inconsistency. It's all about states' rights until it's not convenient, from segregation to regulation. My state has strict insurance regulations. I like it. I'm willing to pay more for it. In fact, in choosing among the plans offered to me through my employment, I didn't choose the cheapest one either--I chose the one that best suits my needs (in this case, it offered more choice or providers). So what happens when cheap insurance from a poorer, less regulated state strips away gullible customers who don't recognize what they're no longer getting? And when angry customers go to the state AG, what happens? It's just not as simple as open the doors and let the prices drop, and you know enough business to know this. So what, we'll create another Delaware? It's a veiled attempt to deregulate. What happened to the plan they proposed in the early 90s? Where's that plan? Why haven't they resurrected it? It's an end run. You have made the erroneous assumption that each state would not be able to regulate the policies sold in that state, regardless of the situs of the issuing company. Thats how life insurance works. Separate subsidiaries are not required to sell life insurance in a given state, just a license, conforming policies and conforming reserves. That opening health insurance to interstate sales will result in lower costs is a myth. States already have competing companies. Why wouldn't this already lower cost? Companies already do business in several states, through separate subsidiaries. Why does this not already encompass economies of scale? (And we're not taking manufacturing or transportation costs here--it's paperwork.) And if there were economic opportunities to sell insurance at lower rates, why wouldn't opportunity cost already provide economic incentive to open up shop and do so? No. What they want is to sell insurance in New York living under Arkansas' rules (a hypothetical example). If they just want to do business in New York, nothing's stopping them.
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