Secondly, when some states have no health insurance options to choose from in their Obamacare exchanges, that illustrates the grave need for interstate competition in the healthcare industry. In February, the health insurance provider Humana pulled out of Tennessee’s ACA exchange—the last insurer to do so. It wasn’t until May that BlueCross BlueShield agreed to fill the void, and even then, the company only agreed to be a part of Tennessee’s exchange under certain conditions. In the intervening three months, Tennesseans trying to buy health insurance via their state’s Obamacare exchange were essentially out of luck. (The Atlantic article reports that Humana’s withdrawal left 40,000 people with no health insurance option.)
This situation could have been avoided entirely if health insurance companies weren’t regulated in such odd, inexplicable ways. Consumers who want to buy car insurance can buy it from anyone they want. If they want to work with an in-state provider, they can. If they want to buy from a national entity, they can do that too. This across-state-lines way of doing business gives drivers a lot more choice when deciding how to insure themselves. That additional choice means more competition, which keeps insurance providers on their toes and helps keep automotive insurance affordable and accessible to virtually anyone who needs it.
