Question

Do you feel positively or negatively about the fact that insurance is regulated and mandated at the state level rather than federally? Explain your thinking.

Answer 1

The U.S insurance industry is mainly state-regulated, with goals of affordable and universal coverage. The Affordable Care Act was a significant effort at the federal level, resulting in state-based insurance exchanges. Both levels of regulation aim to balance affordability and access amid political and practical challenges.

Step-by-step explanation:

The U.S. insurance industry is primarily regulated at the state level. One of the chief aims of this regulation is to ensure affordable insurance for all citizens while fostering a competitive market. Since 1871, the National Association of Insurance Commissioners has been in place to aid state regulators in these endeavors. In recent years, the perceived gap in insurance coverage led to federally-instituted healthcare policies like the Affordable Care Act (commonly known as Obama Care), aiming to reduce the number of uninsured citizens.

However, such federal initiatives have also been subject to criticism and operational issues. State-based insurance exchanges have been established in response to this, allowing for competition amongst insurance companies on a more local level. Even with these changes, the core focus remains on achieving a balance between affordability and access to coverage for all, despite potential political and practical challenges associated with each level of regulation.

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