The Health Care Choice Act: Eliminating Barriers to Personal Freedom and Market Competition: "

Research: Health Care
The Health Care Choice Act:
Eliminating Barriers to Personal Freedom and Market Competition
by Robert E. Moffit, Ph. D.
WebMemo #1164

July 17, 2006

While interstate commerce in goods and services is routine in virtually every other area of the national economy, such as banking and financial services, it is largely frustrated in the health care sector by law and government regulation. For individuals and families, this means that they are not able to secure the kind of coverage they want at the prices they wish to pay. The Health Care Choice Act (H.R. 2355 and S.1015), sponsored by Representative John Shadegg (R-AZ) and Senator Jim DeMint (R-SC), would amend current law to allow for interstate commerce in health insurance plans while preserving states’ primary responsibility for the regulation of health insurance. These changes would broaden and intensify competition among health plans and medical providers, encourage a serious review of existing health care regulation in the states, and expand the choice of millions of Americans of more affordable health insurance plans. The result: reduced health care costs and greater access to health care coverage.

What the Bill Does

The bill would reform the individual health insurance market by allowing individuals and families who reside in one state to buy a more affordable health insurance plan domiciled or licensed in another state. Likewise, health insurance.......more