Insurance sales to cross state lines

Jun 27, 2011

Insurance companies are no longer bound by state lines in Georgia

Georgia residents will soon have the opportunity to buy life insurance and health insurance across state lines, according to the Associated Press. Governor Nathan Deal signed legislation on Friday that will lift the ban on interstate sales.

The bill's supporters believe that insurance costs will be lowered by increasing the amount of competition within the market, the AP reports. People on the other side of the debate feel this change in policy will only produce an increased number of watered-down plans that will not meet state mandates. For example, California requires policies to cover lead poisoning treatments, while other states let insurers decide whether they will cover it or not, according to The Washington Post.

Some experts want insurance mandates to be regulated by the federal government, ensuring everyone will receive the same care and coverage, the Post reports. Others want insurers to set up shop in one state, only abide by those mandates, but maintain the ability to sell to anyone in the country.

When Congress considered a bill that would allow for this multi-state selling to take place, the members found that the legislation would raise prices for the sick and lower them for healthy people, according to the Post. 

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