Measure to allow sales of out-of-state health insurance plans gets panel’s blessing

Feb. 23--BOISE -- Legislation that allows out-of-state insurance companies to sell health and accident policies in Idaho received a favorable -- though lukewarm -- recommendation from a Senate committee Thursday.

The bill, sponsored by Sen. Dan Foreman, R-Moscow, requires the companies to follow all Idaho insurance laws and use agents who are licensed in Idaho.

"This should introduce more competition into our insurance marketplace. The intended result is to lower premiums and offer better choice," Foreman told the Senate Commerce and Human Resources Committee. "It's not a show-stopper, but this isn't a dangerous or radical bill. It's the proper and right direction to go for Idaho consumers."

No one testified against the bill, and the committee gave it a favorable recommendation on a unanimous voice vote. However, even supporters were hard-pressed to say it would make much difference.

"We don't believe this bill is a panacea for driving down health insurance premiums," said Fred Birnbaum, with the Idaho Freedom Foundation. "This is a small step, a potentially positive step, and there's no downside."

Department of Insurance Director Dean Cameron said he's "dubious" that it will have much effect on Idaho's insurance market, but he didn't oppose the bill.

There already are about 680 companies licensed to sell insurance in Idaho, he said, and the majority of them are headquartered in other states. Foreman's bill would free the out-of-state firms from having to obtain an Idaho license, which some might see as an advantage; however, the companies would still have to be licensed in their home states and adhere to all Idaho insurance requirements.

"So then the question is, why do this? What's the advantage?" Cameron asked. "Those are public policy questions you need to answer. Where this might be successful is in metropolitan areas that cross state borders, such as in Kansas City. In Spokane and the North Idaho market, I could see this happening."

The real difficulty for out-of-state firms, he said, is in establishing a provider network.

"That's not an easy task," he said. "And what's most important for carriers to get the lowest (premiums) is their provider contracts. You can wipe out all the barriers in the world, but if they can't get providers to sign contracts, they won't be successful."

This is Foreman's first bill to get out of committee. It now goes to the full Senate for a vote.

---

Spence may be contacted at [email protected] or (208) 791-9168.

___

(c)2018 the Lewiston Tribune (Lewiston, Idaho)

Visit the Lewiston Tribune (Lewiston, Idaho) at www.lmtribune.com

Distributed by Tribune Content Agency, LLC.