Quote: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.  

 

And the solution we came up with to that exact situation was to require the insurance company regardless of where they're located to cover diabetes even if the customer had diabetes before they bought the plan. So that eliminated the low cost insurance option for everyone across the board, and then once we ensured the price would sky rocket we made it illegal to not purchase it! Brilliant!

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