Benefit mandates from the states, however, provide important consumer protection.
The group has also been discussing the possibility that federal standards "may supersede state benefit mandates".
Data show that premiums are increasing because of the unsustainable rise in medical costs, new benefit mandates that make coverage more expensive, and the effect of younger and healthier people forgoing insurance because of a slow economy.
Chris Jacobs, a health policy analyst for Senate Republicans, said the new policy "gives states the flexibility to impose more benefit mandates, not fewer," and would lead to higher insurance premiums, contrary to what Mr. Obama promised in the 2008 campaign.
These factors, Ms. Ignagni said, include the power of doctors and hospitals to negotiate higher reimbursement rates, new benefit mandates and the tendency of younger, healthier people to drop coverage, leaving sicker people in the insurance pool.
Policies would be subject to laws in a company's home state, but would be exempt from many of the consumer protection laws, rating rules and benefit mandates in other states where the company sold coverage.
But it is unclear whether the government-sponsored plans will have to comply with all state laws and consumer protection standards; whether they will have to comply with state benefit mandates; and whether they will have to pay state fees and taxes levied on other insurers to finance exchange operations.
Such benefit mandates force insurance prices up.
1. Roll back costly benefit mandates for health insurance.
Benefit mandates set by the states prevent health insurance companies from offering inexpensive, no-frills plans.
