Interstate Insurance Compacts
States may want to expand insurance options for their residents, but they will also want to consider the regulatory environment in partner states when making a decision about whether to participate in a Health Care Choice Compact.
*Full name: Decide whether to participate in a Health Care Choice Compact to facilitate interstate sale of health insurance products.
*Relevance to the ACA:
The ACA gives states the option to enter into compacts with other states to offer interstate insurance plans, subject to approval of the Secretary of HHS. Relevant sections include:
§1333 - Creates the option for Health Care Choice Compacts between two or more states. States must pass a law allowing their participation in a compact and the Secretary of HHS must approve the compact. Plans are subject to market conduct rules, network adequacy requirements, unfair trade standards, and consumer protection requirements of the state where the purchaser of the insurance policy resides. Plans are subject to all other laws and regulations in the state where the plan is issued.less