Full question:
What is the part of the Interstate Commerce law that applies to prohibiting the sale of HEALTH insurance across state lines?
- Category: Insurance
- Date:
- State: Connecticut
Answer:
Insurance, including health insurance, is primarily regulated by individual states rather than the federal government. This state regulation has been supported by the insurance industry, which has historically opposed federal oversight. As a result, each insurance company must obtain a license to operate in every state where it offers services.
For health insurers, companies like Blue Cross/Blue Shield operate on a state-by-state basis, such as BC/BS of Connecticut or BC/BS of California. This can create challenges for individuals who move between states. For instance, a person insured with BC/BS of Connecticut may face medical underwriting and potential denial of coverage for pre-existing conditions when applying for insurance in California.
The restriction on selling health insurance across state lines is not due to the Interstate Commerce Clause of the U.S. Constitution. Instead, it stems from the insurance industry's lobbying efforts to maintain state regulation and avoid federal oversight.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.