President Trump’s Executive Order Permitting Health Insurance Sales across State Lines


New Executive Credentials for Across State Sales

Not long ago President Trump released a statement, which should have all insurance sellers at the edge of their seats. “I’ll probably be signing a very major executive order where people can go out, across state lines, do lots of things and buy their own health care,” said President Trump to reporters at the South Lawn.  President Trump will be taking executive action in the health insurance marketplace. The executive action will allow insurance sellers to participate in across state line selling of health plans. This announcement could lead to major advances in health insurance sales, but what is the purpose of President Trump passing this order?

Implementation of Across State Sales

President Trump told Congress earlier this year that “the time has come to give Americans the freedom to purchase health insurance across state lines, creating a truly competitive national marketplace that will bring the cost way down and provide far better care.”  President Trump hopes for positive outcomes by implementing across state sales. Selling across state lines will promote competition while giving customers a wider range of options for health plans. Cheaper health plans will be available to those who are healthier with this new order. This also allows those who are sicker to be able to get better plans with better coverage that might not be available in their states.

Effectiveness of Plan

In some places across state lines, selling is allowed but hasn’t seen much effectiveness. Problems can occur by creating risk-pools that won’t have enough healthy people to balance the cost of sick people claims. It is also a problem when it comes to creating a network of doctors when insurers enter a market. The time and money put in might not be worth the number of people getting insured in the new market.


We will not know the outcome of Trump’s decision until next week. Be sure to stay up to date on the decision by checking in with Empower for a follow-up article. Since insurance is often times overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions.  So if you have any questions or concerns, comment below and your question may be the topic of our next video!

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