Will I be allowed to buy insurance from another state?


Yes, you are free to buy your health insurance policy from another state that is not the state where you currently live in. The insurance you buy will be regulated based on the rules and regulations set by the state where you bought the policy.

The health reform bill will establish health insurance exchanges in every state. These exchanges are aimed to provide you with affordable insurance, particularly if you are buying in the individual market. The exchange will help you compare different plans from various providers to see which plan will work best for you.

You may be wondering why you may want to buy insurance from another state when there are insurance plans available in the state you live. Buying from another state may mean cheaper premiums for you. If premiums are not regulated in your state, chances are, they will be on the high side, as compared to premiums on states that regulated insurance pricing. Thus, you will get to save a substantial amount if you buy from another state.

You don't have to worry about consumer protections if you buy from an interstate market. Most of these states will be part of an inter-state agreement, which guarantees the quality of the delivery of health insurance benefits. You don't have to be concerned that hospitals in your home state will refuse to provide you with the care you need or that it will be hard to make your claims when the time comes. With inter-state agreements, the usual consumer protections will still be in place.

However, before you decide to buy insurance from another state, you should also weigh in the costs with how the insurance product answers your needs and how easy it would be to access your policy during the time that you will need it. 

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