Competing across state lines means all insurance will be regulated by the state with rules that most favor the insurer, it isn't all that likely to be good for consumers.
The banking renaissance in South Dakota is a result of a similar situation.
> Competing across state lines means all insurance will be regulated by the state with rules that most favor the insurer
Not really; states are still free to set additional requirements for insurance plans that cover members of that state.
To be honest, competing across state lines would not actually do much in the long run. It'd provide an extra degree of competition in the short-term, but ultimately then insurers would consolidate into multistate operations (which is already the case to a large degree).
(b) Exemptions From Covered Laws in a .—Except as provided in this section, a health insurance issuer with respect to its offer, sale, rating (including medical underwriting), renewal, and issuance of individual health insurance coverage in any secondary State is exempt from any covered laws of the secondary State (and any rules, regulations, agreements, or orders sought or issued by such State under or related to such covered laws) to the extent that such laws would—
Of course it spells out a bunch of situations where the secondary state would still have authority, but reducing the ability of states to regulate sure seems to be one of the goals there.
Many credit card companies are headquartered in Delaware because that state doesn't place any limits on interest rates for credit facilities, iirc. States don't always negotiate well and may opt to enrich themselves at the expense of consumers in other states. This is a problem with letting the market dictate solutions; more often than not, things will tend towards a lowest-common denominator, and the financial incentives for firms, consumers, and states are often perversely aligned.
It seems insurer's scream louder about the "insuring across state lines" bit then they did against Obamacare in my estimation. On that metric alone I estimate that it will be more effective.
The banking renaissance in South Dakota is a result of a similar situation.
https://www.theatlantic.com/business/archive/2013/07/how-cit...