Study: Little practical interest in selling insurance across state lines

Efforts to sell health insurance across state lines haven't made much of an impact or galvanized much popular support, according to a new paper.

Researchers at Georgetown University examined state laws that make it easier for insurance companies to sell plans across state lines — a hallmark of GOP healthcare plans, including the party's plan to replace President Obama's healthcare law.

Only six states have passed laws to allow the sale of insurance policies from other states, and not a single insurance company has taken advantage of the expanded market, according to the research.

Insurance is regulated primarily at the state level. Supporters of selling across state lines say the policy would expand consumers' access to a wider range of options.

Opponents say insurers would flock to the state with the loosest regulations, effectively undermining regulations in other states where customers buy an out-of-state policy.

But at least so far, insurers don't seem especially interested in breaking out of the state-by-state mold, the Georgetown paper says.

"Further, there was no evidence that these initiatives actually bring down costs or increase consumer options," the researchers said in a blog post. "In fact, such proposals could put consumers at risk by limiting state officials’ ability to respond to the needs of their residents and eliminating important state-based protections."

— This post was updated at 3:34 p.m.

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