One of the best Republican arguments was that competition would bring insurance premiums down by allowing insurance companies to sell their policies nationally. The reason this would work so dramatically is that some states (mostly deep blue ones with intrusive government) mandate that all insurance sold in their state cover a wider range of ailments and have more restrictions than insurance sold in the lower premium states (mostly red states). Therefore, it’s no surprise that insurance premiums for a family of four in highly restrictive states (like New York) can be 30%, 40%, even 100% higher than other less restrictive states (like Texas).
This distinction will disappear under HR3590. Under this bill there will only be four basic plans allowed: Bronze, Silver, Gold, and Platinum. The HHS Secretary shall establish the minimum coverage to be provided in each plan level. So even though you live in New York, you still won’t be able to buy insurance in Texas, all the coverage requirements will be the same in both states.
In addition, high deductible insurance will disappear. I believe that ALL plans will be $100 deductible (I could be mistaken on this — but no more high deductibles because the elites say this is bad, very bad). That means that my three sons who run a business in Texas and have $5,000 deductible insurance and pay only $100/mo, will see a dramatic increase in their rates. Currently, the difference between $5,000 and $100 deductible is about $400/mo — which they put in a HSA (and it’s their money). Now they’ll have to pay that extra money to insurance companies and it’s gone, each and every year. So the $50,000 they could have saved in the next 10 years is long gone!