An Interstate Commerce Route to a National Market for Health Insurance

Advocates of interstate competition and choice in health insurance contend that state-level mandates for particular benefits, providers, and types of coverage, as well as other regulations, distort prices, increase health care costs, and reduce access to affordable insurance. Several members of Congress and at least one presidential candidate have proposed reforms to allow the purchase and sale of health insurance across state lines.

In this context, two University of Minnesota health economists, Stephen Parente and Roger Feldman, present their new analysis of the impact of state laws and regulations on health insurance premiums. Parente and Feldman have analyzed three scenarios for insurance competition: among the five largest states, among all fifty states, and within four geographical regions. They found that the most plausible scenario could produce a net increase of more than 11 million newly insured individuals. In addition, states with the largest regulatory burden (for example, New Jersey and Massachusetts) would experience the greatest movement of their resident insurance customers to insurers based in a less regulated state. Health policy researchers Michael Morissey of the University of Alabama at Birmingham and AEI's Aparna Mathur, and Assemblyman Jay Webber will respond and discuss the current effects of state insurance regulation on costs and coverage, the likely effects of interstate competition, and how such a regime might be structured. AEI's Thomas P. Miller will moderate.

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About the Author

 

Aparna
Mathur
  • Aparna Mathur is an economist who writes about taxes and wages. She has been a consultant to the World Bank and has taught economics at the University of Maryland. Her work ranges from research on carbon taxes and the impact of state health insurance mandates on small firms to labor market outcomes. Her research on corporate taxation includes the widely discussed coauthored 2006 "Wages and Taxes" paper, which explored the link between corporate taxes and manufacturing wages.
  • Phone: 202-828-6026
    Email: amathur@aei.org
  • Assistant Info

    Name: Hao Fu
    Phone: 202-862-5214
    Email: hao.fu@aei.org

 

Thomas P.
Miller
  • Thomas Miller is a former senior health economist for the Joint Economic Committee (JEC). He studies health care policy and regulation. A former trial attorney, journalist, and sports broadcaster, Mr. Miller is the co-author of Why ObamaCare Is Wrong For America (HarperCollins 2011) and heads AEI's "Beyond Repeal & Replace" health reform project. He has testified before Congress on issues including the uninsured, health care costs, Medicare prescription drug benefits, health insurance tax credits, genetic information, Social Security, and federal reinsurance of catastrophic events. While at the JEC, he organized a number of hearings that focused on reforms in private health care markets, such as information transparency and consumer-driven health care.
  • Phone: 202-862-5886
    Email: tmiller@aei.org
  • Assistant Info

    Name: Neil McCray
    Phone: 202-862-5826
    Email: Neil.McCray@aei.org

 

Michael A.
Morrisey

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Wednesday, April 23, 2014 | 12:00 p.m. – 1:30 p.m.
Graduation day: How dads’ involvement impacts higher education success

Join a diverse group of panelists — including sociologists, education experts, and students — for a discussion of how public policy and culture can help families lay a firmer foundation for their children’s educational success, and of how the effects of paternal involvement vary by socioeconomic background.

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Thursday, April 24, 2014 | 12:00 p.m. – 1:30 p.m.
Getting it right: A better strategy to defeat al Qaeda

This event will coincide with the release of a new report by AEI’s Mary Habeck, which analyzes why current national security policy is failing to stop the advancement of al Qaeda and its affiliates and what the US can do to develop a successful strategy to defeat this enemy.

Friday, April 25, 2014 | 9:15 a.m. – 1:15 p.m.
Obamacare’s rocky start and uncertain future

During this event, experts with many different views on the ACA will offer their predictions for the future.   

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