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Peter R. Orszag

Selling Health Insurance Across State Lines Won't Save Money

An idea that sounds easy is too complicated to work.
Local charges may vary.

Local charges may vary.

Photographer: Andrew Harrer/Bloomberg

The effort to replace Obamacare faces increasing challenges, the more it is subjected to the harsh light of scrutiny. A good example is the proposal, apparently central to the Republican replacement plans, to allow people to buy health insurance across state lines.

This idea has been put forward as an elixir to all sorts of health sector problems. In his joint address to Congress, President Donald Trump argued that allowing people to buy health insurance in other states would “create a truly competitive national marketplace that will bring costs way down and provide far better care. So important.”