By Ronald E. Bachman
Conservatives have long promoted the expansion of individual health insurance over employer-based health insurance. Despite the sense in individual ownership, however, only about 5 percent of policies sold in the United States are to individuals.
It’s not for want of trying: Interstate insurance purchasing of individual policies was a key item in the Republican “Pledge to America
,” right after tort reform. Cross-state selling of health insurance is part of Mitt Romney’s “Repeal and Replace” health reform proposal.
There are several reasons for the paucity of sales to individuals: Individuals lack the same employer-based tax advantages; it isn’t as lucrative for agents to sell policies one at a time; group sales reach more people faster,…