Health insurance doesn’t work the same way. People can’t buy health insurance across state lines, which means that each state is essentially its own market bubble. Someone planning to buy health insurance—even outside of the ACA exchange—is limited to the insurance providers that offer coverage in that state. State lines serve as barriers to broader competition, which in turn leads to higher coverage rates.
Finding a Path to Better Healthcare Reform
If there is a strategy for healthcare reform that could truly lead to cost reductions and better coverage across the board, it lies in creating more of a free market for health insurance.
The first step to this free market is to curb regulations. Part of the reason health insurance providers are jumping ship on the Affordable Care Act is that it places too much burden on them. It’s important to remember here that health insurance companies are not government agencies, designed only for the good of the people. On the contrary, health insurance providers are businesses aiming to maximize their profits. Regardless of the industry, the fact is that burdensome regulations make it harder for private enterprises to serve their customers, offer quality services, and make money. Trimming some of the regulatory burden placed upon insurance providers—both by the ACA and by other government laws and standards—would lead to a wider availability of options for customers.
