Interstate health plan sales — Georgia's 5-year trial still has no interested payers

Republicans are of the opinion to allow payers to sell policies across state lines, but payers don't seem to be interested. Georgia rolled out interstate health coverage sales five years ago, but no payers have jumped on board, according to a Georgia Health News reporter's piece published in Kaiser Health News.

Here are six things to know:

1. President-elect Donald Trump and his HHS pick Tom Price, MD (R-Ga.), have voiced support for the interstate sale of health plans in order to inspire competition.

2. Some state insurance regulators are calling foul, however, noting this proposal may encourage healthy residents to purchase minimal policies out of state, as opposed to buying the more extensive coverage offered by locally licensed payers. Therefore, the local plans would only cover people with health complications, bearing a greater financial burden.

3. Democrats are also unsupportive of the proposal, arguing it would undervalue the state protections for consumers.

4. Graham Thompson, executive director of the Georgia Association of Health Plans, said the law didn't take off in Georgia because payers didn't want to take on creating contracts with hospitals and medical providers in other states.

5. Despite a lack of interest in Georgia, Mr. Thompson said a federal law allowing interstate sell of coverage could present a different outcome, depending on the details.

6. Atlanta-based Georgia State University's Bill Custer points out other states have implemented similar insurance laws to Georgia's with a similar outcome, however.

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