Professional Insurance Agents Oppose Proposal to Allow Health Insurance Sales Across State Lines

March 13, 2017

Caution Against Continued Federal Encroachment Post-ACA

WASHINGTON — House Speaker Paul Ryan said a second healthcare bill will be moved in tandem with the American Health Care Act, Ryan-led legislation to repeal the Affordable Care Act (ACA). The second bill will include a provision allowing insurers to sell health insurance policies across state lines. The National Association of Professional Insurance Agents (PIA) opposes this provision because it would strip states of their regulatory authority over insurance and undermine the foundation on which state regulation of insurance is based.

PIA is a steadfast supporter of the supervision and regulation of insurance by the states, and opposes all proposals to institute federal insurance regulation. State governors, legislators and regulators know best what will work in their unique markets, and what will not work. Allowing health insurance to be effectively exempt from state regulation by permitting insurers to pick their own regulator in one state—and by so doing, evade the requirements of all 49 other states—would, by federal edict, eviscerate local control.

“All insurance is local,” said PIA National Executive Vice President & CEO Mike Becker. “This is especially true of health insurance. Proposals that would preempt state authority and not allow states to form compacts among themselves effectively turn aside the collective expertise of the states. The path to constructing a replacement for the ACA should lead to more state control, not less. This proposal would transfer power from the states to the federal government.”

“Permitting the designation of any one state as regulator for all states would, in essence, impose a one-size-fits-all solution dictated by Washington, D.C.—which, ironically, has been one of the main criticisms of the ACA,” Becker said.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America SM. PIA’s web address is