http://www.ama-assn.org/amednews/2011/06/06/gvsb0606.htmThe article is initially about the bill introduced in the House of Representatives by Marsha Blackburn (R-Tenn), but it goes into detail about the similar laws being pushed in state legislatures -- which are particularly relevant since Blackburn's bill has no chance of passing the Senate. This is more House GOP posturing.
Blackburn's bill would allow out-of-state health plans to bypass these regulations in other states. Health plans still would be required to maintain financial reserves in case of insolvency and to pay state taxes. Applications also would include a disclaimer noting that many of the state's regulations might not apply to a particular plan.
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At least three states have adopted bills allowing interstate health insurance sales. A bill enacted by Georgia in May would open up the state to any health plans that meet certain basic standards. But similar laws adopted in Wyoming in 2010 and by Maine in May begin by limiting cross-border health insurance sales to companies in certain nearby states.
The Maine bill was controversial and was opposed by state consumer groups and the Maine Medical Assn., said MMA Executive Vice President Gordon Smith. The potential impact of interstate health insurance sales in Maine is unclear, Smith said. But the medical association opposed it, because it could allow health insurers to sell policies only to the healthiest residents and could place additional barriers on physicians who lodge grievances against health plans.
Many of the state bills are based on a model written by the American Legislative Exchange Council, a group of state legislators who support free-market solutions. In 2010, lawmakers in 18 states introduced the model bill, while this year lawmakers in at least 15 states did so.
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Emphasis added.