The Centers for Medicare & Medicaid Services (CMS) has asked the public for suggestions on how to facilitate the sale of health insurance plans across state lines.
The Affordable Care Act includes a provision that allows such sales through state agreements called “healthcare choice compacts.” However, few states have passed legislation that would take advantage of the opportunity.
CMS Administrator Seema Verma said in a statement that “Americans are in desperate need of more affordable health insurance options. Eliminating the barriers to selling health insurance coverage across state lines could help provide access to a more competitive and affordable health insurance market.”
While campaigning, President Trump said that interstate sales could be one way to help improve the ACA. However, the American Academy of Actuaries reported that premiums are determined by the cost of local care, not where the policies are sold, so savings would be limited.
CMS will accept public comments on the issue for the next 60 days.