Originally Posted by
ETWolverine
ABSOLUTELY.
As I have posted elsewhere, part of the reason that medical insurance premiums being so high is because there are only a few companies competing in every state. In every state you only have about 3 or 4 choices of insurance companies, because insurance companies can only sell in states in which they have been "approved", and citizens can only by from insurance companies that are approved in that state. This limits competition and drives prices UP.
This change in law would mean that instead of 4 insurance companies to buy insurance from, we would now have roughly 1300 insurance companies to buy from... the full number of medical insurance companies operating in the USA. We would be able to choose any plan that those insurance companies offer, based on both price and quality. This would immediately increase competition between the insurance companies, driving prices down and quality of coverage up.
Competition is, in fact, one of the major free market solutions to driving insurance prices down. The concept is called "portability" in insurance jargon, and it is one of the centerpieces of conservative health care reform geared towards increasing affordability and accessibility.
Elliot