Interstate Compacts for Health Insurance is Yet Another Sound Idea

Richard Sherwood / March 19, 2010

Throughout the debate over liberals’ health care proposals, it has become clear that  while Americans want health care reform, they reject the direction of the legislation that will be voted on in the House this weekend.  The current health care bill results in a government takeover of the health care system by imposing strict regulations on insurers, mandates on employers and individuals, and an expansion of costly and inefficient entitlements.  States and citizens alike are rebelling against the bill in a bipartisan manner.  State legislators reject the bill because it significantly reduces their authority over health insurance markets and flexibility in managing Medicaid. With only 47 percent believing that it is the federal government’s responsibility to ensure coverage, Americans are rightly alarmed by the intrusive nature of the legislation.

Former Congressman Tom Feeney (R-FL) recently worked with the Heritage Foundation to outline a solution that promotes individual freedom in health care markets:  interstate commerce contracts among states. Interstate commerce for health insurers would create robust competition, lowering costs for the citizens of the allied states.  It is a step towards reform that states can take without action from Washington.  As Rep. Feeney remarks: (more…)