Posted at 11:46 AM on October 21, 2009
by Tom Scheck
(1 Comments)
Gov. Pawlenty sent a letter to 49 other governors asking them to form an Interstate Health Insurance Compact to tackle health care reform. In his letter, Pawlenty referenced the health care initiatives he announced last week. One of the proposals is an Interstate Health Insurance Compact, which would allow participating states to create common regulatory standards so states can buy health insurance across state lines.
Pawlenty wants Minnesota to be the first state in the nation to allow the purchase of medical insurance plans from other states. Some critics say they're concerned that allowing individuals to purchase health insurance across state lines will loosen consumer protection. The Interstate Health Insurance Compact will need approval from Congress.
Pawlenty, a possible candidate for the White House in 2012, has been highly critical of President Obama's health care plan. This is obviously his effort to counter that proposal with one of his own.
This is some idea right wing doofuses like Michele Bachmann have seized upon as some sort of "silver bullet" for the health care crisis which at long last they have at least acknowledged exists. (Unlike the predatory lending crisis that was occurring for the 10 years before the financial meltdown). There is no law preventing anyone from buying health insurance "across state lines" except the antitrust exemption in the McCarran Ferguson Act (15 United States Code sections 1011-1015). That law exempts the "business of insurance" from antitrust liability where the business is subject to state regulation. In effect it authorizes insurance companies to fix prices and create monopolies under the theory that state regulation will prevent those problems. What makes Pawlenty and the other leading lights of the right think more monopoly and price fixing is going to solve this problem?
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