Bill aims to create national health insurance market

House Speaker Dennis Hastert endorsed legislation to allow individuals to buy health insurance from any state, regardless of where they live.

The legislation would lower the cost of health insurance by allowing individuals to get around their state's coverage mandates and pick a less-comprehensive plan, says Rep. John Shadegg, R-Ariz., the bill's sponsor.

These mandates add thousands of dollars to the cost of health insurance in some states, bill supporters say.

"Where you live should not determine whether or not you can afford a health insurance policy," says Angela Hunter, federal affairs director for the Council for Affordable Health Insurance.

Shadegg says his bill would "create a national market for health insurance." This additional competition would keep a lid on premiums, he says.

Under the legislation, any insurer that meets the regulatory requirements of its home state could sell in any state.

Senate sponsor Jim DeMint, R-S.C., says the bill is a "great start" toward the day when every individual will have their own "personal, portable and permanent" health insurance. Most people now are covered by employer-based plans.

Hastert, whose support boosts the bill's chances, calls the legislation "one of the more innovative ideas" for the health insurance market.

Online auctioneer eBay agrees. The legislation would allow consumers to go online and find more choices for health insurance just like eBay gives consumers more choices for a whole host of products, company officials say.

The legislation also would help the 400,000 Americans who make a living selling on eBay, says Brian Bieron, the company's senior director of federal government affairs. These individuals now have a tough time finding affordable insurance.

"That is a problem that has to be solved," Bieron says.

Two small business organizations, the National Federation of Independent Business and the Small Business & Entrepreneurship Council, also have endorsed the legislation. So has Golden Rule Insurance Co., which specializes in the individual market.