Two weeks ago, The Wall Street Journal ran two articles praising state efforts to expand health insurance choices. One piece commended recently enacted Florida legislation that created “mandate-light” health insurance policies.
“Insurance companies will be permitted to sell stripped-down, no-frills policies exempted from the more than 50 mandates that Florida otherwise imposes, including for acupuncture and chiropractics. The new plans will be designed to cost as little as $150 a month, or less.”
Similar plans are available in Texas, but each session brings additional mandates resulting in reduced savings.
The other article pointed to New Jersey’s proposed legislation that would allow its citizens to buy health insurance from other states, a policy idea that free market thinkers have advocated for years. And there is no better place to experiment with this policy than New Jersey, which has some of the highest insurance premiums in the country.
“The average national cost for a family health plan is $5,799, according to America’s Health Insurance Plans, but in New Jersey that same plan costs $10,398 on average.”
If the legislation passes, New Jersey will be the first state to offer this revolutionary alternative, but the Texas Legislature could offer Texans the same opportunity simply by amending the Texas Insurance Code. The Foundation’s recent publication, Expanding the Health Insurance Market, explains the benefits of this arrangement and how the legislature could make this change in Texas.
– Kalese Hammonds