PIA National Files Comments Opposing Health Insurance Sales Across State Lines
PIA National has submitted comments in opposition to the concept of allowing health insurance sales across state lines. The Department of Health and Human Services (HHS)’s Centers for Medicare & Medicaid Services (CMS) requested comments on Executive Order 13813 (issued in October 2017) which set forth the administration’s policy of facilitating the purchase of particularly health insurance across state lines.
“PIA National is a steadfast supporter of continued oversight and regulation of insurance by the states as outlined by the McCarran-Ferguson Act of 1945, and opposes all proposals that would institute federal insurance regulation, in full or in part,” said the PIA statement.
“PIA National has long opposed proposals to allow health insurance sales across state lines, because it undermines the principle of state regulation of insurance; essentially, allowing insurance sales across state lines begins a process of designating lines of insurance that are exempt from state regulation and would thus be subject to federal regulation instead. Once the process of eroding state insurance regulation begins, federal regulators would take over the regulation of more and more aspects of insurance, in violation of McCarran-Ferguson.”
PIA pointed out that state governors, legislators, and regulators know best what will work in their unique markets. Allowing health insurance to be effectively exempt from state regulation by permitting insurers to pick their own regulator in one state—and by so doing, evade the requirements of 49 other states—would, by federal edict, eviscerate local control.