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The Role of State Legislation in Consumer-Driven Health Care

25 Pages Posted: 5 Dec 2005  

Timothy Stoltzfus Jost

Washington and Lee University - School of Law

Mark A. Hall

Wake Forest University - School of Law

Abstract

The Consumer-directed health care movement has recently been given a major boost by section 223 of the Medicare Modernization Act, which provides federal income tax subsidies for health savings accounts coupled with high deductible health plans. The federal tax subsidy, however, will only be available in states whose program of insurance regulation permits high deductible health plans to exist. The MMA represents, therefore, a new approach to federalism in health insurance - offering tax incentives for states to change their approach to insurance regulation rather than preempting state regulation or imposing federal regulation. To date the states have generally responded positively to the federal inducement by adapting their regulations to the federal model. We question, however, whether the states are fully considering the new challenges to insurance regulation raised by consumer-driven health care. This article, based on interviews with state regulators, insurance company representatives, and other experts, attempts to ask the questions that states must answer in deciding how to regulate this new form of health care finance.

Suggested Citation

Jost, Timothy Stoltzfus and Hall, Mark A., The Role of State Legislation in Consumer-Driven Health Care. American Journal of Law and Medicine, Vol. 31, pp. 395-418, 2005; Washington & Lee Legal Studies Paper No. 2005-24; Wake Forest Univ. Legal Studies Paper No. 05-24. Available at SSRN: https://ssrn.com/abstract=853084

Timothy Stoltzfus Jost (Contact Author)

Washington and Lee University - School of Law ( email )

Lexington, VA 24450
United States
540-458-8510 (Phone)
540-458-8488 (Fax)

Mark A. Hall

Wake Forest University - School of Law ( email )

P.O. Box 7206
Winston-Salem, NC 27109
United States
336-716-9807 (Phone)

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