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Guides In Understanding Georgia Cross-State Health Insurance Sales Law

Georgia was the first state in the nation that enacted a law that allowed the sale of health insurance policies across the states in the year 2011. This brought about excitement among the free marketers of the health care as they waited for insurers to come calling to their state with favorable health care options. Those who have been advocating for a free market in the provision of health care had a reason to celebrate as they got an opportunity to confirm what they have always stood for. Their stand has always been that the only way to ensure that the premiums on health care insurance came down was by opening up the market to competition from whatever quarters.

However, despite the celebrations that came up with the enactment of the law, there was only one problem that had not been expected.  There was no one who was interested. Since the introduction of the law, there has never been a single person who has ever asked to be allowed to sell across states. There have been a number of excuses as to why the law didn’t work.

According to some of the players in the health insurance industry, the law was not adequate enough. This is because despite the law allowing insurers who are out of the state to sell their policies in Georgia, there was still a requirement that they should register their plans in the state. There was also a clause allowing residents of Georgia who encountered a problem with the foreign firms to sue in Georgia instead of going to the state that is home to the insurer. In other words, what the state is doing is only to allow the foreign insurers to market their services within the borders but they deem their out of state license as a Georgia license.

There are also those who think that the health insurance companies have only developed a wait and see attitude until a ruling is made by the Supreme Court on the Obamacare. This is because there are some elements of the Affordable Care Act which would have an impact on the policies available in every state. However, the critics of this argument point out that when insurers are allowed to sell their policies everywhere, it is only the principle of competition that will take place. If there is an insurer who is interested in entering the state with their products, he should then be the first in order to take control of the market.

However, it is possible that the health care insurance companies are afraid of the expected drop in the prices of the policies. Though they may sell more, they are afraid of paying in terms of litigation after the insured people begins falling sick and then discovering that their sicknesses are uncovered in the low cost plan. Other than trying to wait for the cross border companies to introduce their cheaper health insurance, you can look for a cheaper option in your area by entering the zip code above.