In one regulated area of the economy after another, it’s exasperating to hear journalists and pundits claim that, “The market has failed,” when in fact it hasn’t been allowed to function. That’s especially true in the case of insurance, which operates under a regime of state-level protectionism, as former CEI Brookes Fellow Tim Carney makes clear in his Washington Examiner column today:
Rep. John Shadegg, a conservative Republican from Arizona, has proposed a bill to allow interstate purchase of health insurance. Blue Cross has fiercely opposed this idea that could introduce more competition. Currently, Blue Cross companies typically have only a handful of competitors in each state.
Property and casualty insurers operate under a similar state-level protectionist arrangement.
CEI adjunct Ned Andrews argues for interstate insurance choice here.