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.

Also Visit
AEIdeas Blog The American Magazine
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

What's new on AEI

image Recovering from tax time blues
image 10 welfare reform lessons
image Let HHS nominee Sylvia Burwell explain Obamacare lie
image Why bold ideas backfire in politics
AEI on Facebook
Events Calendar
  • 14
    MON
  • 15
    TUE
  • 16
    WED
  • 17
    THU
  • 18
    FRI
Wednesday, April 16, 2014 | 10:00 a.m. – 11:00 a.m.
Calling treason by its name: A conversation with Liam Fox

Join us at AEI as the Right Honorable Liam Fox sits down with Marc Thiessen to discuss and debate whether America’s intelligence agencies have infringed on the personal privacy of US citizens.

Event Registration is Closed
Thursday, April 17, 2014 | 4:00 p.m. – 5:00 p.m.
The curmudgeon's guide to getting ahead

How can young people succeed in workplaces dominated by curmudgeons who are judging their every move? At this AEI book event, bestselling author and social scientist Charles Murray will offer indispensable advice for navigating the workplace, getting ahead, and living a fulfilling life.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.