That is because of the Demcorats McCarran–Ferguson Act who didnt want competition across state lines to drive the Health Insurance prices down or the Federal Government involved which is a known fact.<quoted text>
Health Care insurance companies in America have never been regulated before ACA. There were no commission to report to for rate increases or dispute resolutions initiated by the consumer. There were no uniform standards of operations and covered services.
State Agencies more so regulate Insurance sales agents and agencies within their borders. Insurers left the state if the commission put forth regulations they deemed a threat to their profits./Which is why all states don't have competition in their market.
What to Do When ObamaCare Unravels
Health insurance should be individual, portable across jobs, states and providers, and lifelong and renewable.
By John H. Cochrane
Dec. 25, 2013 3:51 p.m. ET
The unraveling of the Affordable Care Act presents a historic opportunity for change. Its proponents call it "settled law," but as Prohibition taught us, not even a constitutional amendment is settled law—if it is dysfunctional enough, and if Americans can see a clear alternative.
This fall's website fiasco and policy cancellations are only the beginning. Next spring the individual mandate is likely to unravel when we see how sick the people are who signed up on exchanges, and if our government really is going to penalize voters for not buying health insurance. The employer mandate and "accountable care organizations" will take their turns in the news. There will be scandals. There will be fraud. This will go on for years.
Yet opponents should not sit back and revel in dysfunction. The Affordable Care Act was enacted in response to genuine problems. Without a clear alternative, we will simply patch more, subsidize more, and ignore frauds and scandals, as we do in Medicare and other programs.
There is an alternative. A much freer market in health care and health insurance can work, can deliver high quality, technically innovative care at much lower cost, and solve the pathologies of the pre-existing system.
The U.S. health-care market is dysfunctional. Obscure prices and $500 Band-Aids are legendary. The reason is simple: Health care and health insurance are strongly protected from competition. There are explicit barriers to entry, for example the laws in many states that require a "certificate of need" before one can build a new hospital. Regulatory compliance costs, approvals, nonprofit status, restrictions on foreign doctors and nurses, limits on medical residencies, and many more barriers keep prices up and competitors out. Hospitals whose main clients are uncompetitive insurers and the government cannot innovate and provide efficient cash service