Quote:Maybe I just dont understand. It seems to me if they sold across state lines they would be national and in line with other national carriers. In my limited knowledge of this it would stand to reason competition would jump therefore lowering prices (premiums) for citizens. This is good no?

 

Sold nationally yes, but according to the Insurance Commission of their home state. Then you'd have state governments in a race to the bottom to bring those large companies to their states which would lead to both tax incentives and a reduction in regulation. Eventually all insurance companies would be based out of the state most willing to prostitute itself to them. Premiums are really a non-issue for insurance companies, they are effectively finance and investment companies that dabble in healthcare.

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