Quote:Yes, you are not permitted to purchase insurance from another state. That's because the states run their own insurance commissions and set the requirements to sell policies within their borders. And everything in life is business, for physicians who provide the healthcare there can be no service if there is no margin.

 

I believe the reason you cannot buy an out of state insurance plan is because the differences in the state commissions' requirements would lead to a race to the bottom where the lowest common denominator rules.  

 

For example, say the Arizona insurance commission says health insurance does not have to cover diabetes, and the Florida insurance commission says it has to be covered.   If I don't have diabetes, and don't have any risk factors, then I would buy the Arizona plan, because any plan that doesn't cover diabetes would be a whole lot cheaper than one that does.  

 

So then everyone in Florida who doesn't want diabetes coverage buys the Arizona plan, leaving the Florida plans with nothing but diabetes patients.  

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