Lack of competition in the health insurance sector in the United States is a most accepted argument on the high healthcare cost. Several studies have showed that one or two companies dominate different states but cannot sell their covers in other states. In a recent Republican debate, Donald Trump offered a solution to lower health care cost that was allowing health insurance companies to sell their health policies across different states. There is a lack of a national market for health insurance in the United States (Ricardo, 2015). This factor has been an essential point in debates and health reforms presented by the Republicans. Despite earlier efforts to introduce a bill to allow interstate insurance sales, nothing has been implemented. It is an obvious problem that has an obvious solution that is to erase the state lines; this will lower administrative costs and the overall healthcare cost. The McCarran- Ferguson Act of 1945 protects all insurance firms from interstate competition. It gives the states the right to regulate health plans inside their borders (Richard, 2015).

In the past, states such as Georgia has regulated the sale of health insurance from different states but the premiums did not change since insurance companies are free to sell covers anywhere. However, if an individual lives in New York but purchase an affordable healthcare cover from an insurance company in Utah, but they will  have to fly to Utah every time he or she want to see a doctor or any other medical need such as surgeries. Additionally, selling of healthcare cover in new states is challenging, and it is more than just obtaining a license. It includes setting up favorable contracts with different doctors and hospitals so that customers can access healthcare services (McLaughlin & McLaughlin, 2014).