Hats off to Wolf Blitzer for asking the question.
I guess that question didn't make the cut for David Gregory's interview with the President on Sunday, but this one did!
Gregory: Hate to break it to you, but doesn't look so good for your White Sox here. So I want to know who is your pick to win the World Series?
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Good for Wolf Blitzer. Axelrod did a nice job of not answering the questino.
ReplyDeleteWhat is the rationale for disallowing competition across state lines?
For some, it's that this is a state issue, and the Federal govt should not get involved.
ReplyDeleteFor others, they are afraid that insurance companies will flock to states with the fewest regulations...and then the insurance companies will make even bigger profits! I guess this assumes that the cost savings will not be passed on to the consumer.
Bu even more importantly, my guess is that insurance companies like the state mandates. Yes, it forces insurance companies to provide more coverage, but it also forces consumers to buy insurance that they otherwise might not want. I would love to be selling a product where the consumer had no choice but to get a more expensive, coverage rich plan.
In other words, I would think that insurance companies like the current regime. It reduces competition by raising the barriers to entry, and it forces consumers to buy a plan they might not otherwise buy.
But I think the real reason that many are opposed to this idea is that a public option would eventually lead to single payer, while this plan would not.
I agree the insurance companies may like the rules now for the reasons listed above. But, if the rules change, they'll line up to sell more products in more states. The good companies will adjust and succeed. The bad ones will fail. Consumers will win.
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