Governor:

I believe that there are already a large number of insurance carriers in every state. Many carriers already cross state lines under the existing state regulations. I do not understand why there would be a significant savings by relaxing these rules further.

Nope. 

Please show me some data. I understand that there are many insurance carriers that operate across state lines in major metropolis areas such as Washington DC, New York, ...  I believe that some large carriers like Aetna, Blue Cross, Blue Shield, .. already offer national plans that are priced competitively with localized plans.

Governor:

The market you speak of for people over 64 is tiny and consists of mostly medigap coverage.

Please show me some data. Most folks aged 64 are not eligible for Medicare and therefore would not have medigap coverage.

Governor:

The person at Target working as a greater yesterday was 88 years old.

Of course there are some folks that are healthy enough to work until late in life. Perhaps you should visit the local nursing home to personally witness some counter-examples if you do not believe it.

Governor:

By allowing the individual to choose what type they want, they will have the ability to forgo coverage on areas that they dont think they will need, reducing the costs.  Like when you buy auto insurance.  If you lower the deductible, the cost will go up.  Remove collision, and costs go down.

Interesting analogy. If you get into an auto accident, the upfront costs are low with high deductible coverage, but the pay-as-you-go costs are high. Visa-versa with low deductible coverage. In the long run most of the costs are about the same. The costs simply reflect the type of driver you are. Unfortunately, people have much less control over their health. One cannot control if they are genetically disposed to develop cancer.

Governor:

Many individuals can already deduct their health insurance costs through the use of HSA plans and/or by forming a small business entities. There do not appear to be any great savings by going this route. The premiums are still fairly high and the deductibles/copays may be much higher.

Negative.  Very few people have an HSA.

My statement still stands that 'many individuals can already deduct their health insurance costs through the use of HSA plans and/or by forming small business entities.' The reasons why so many choose not to go down this path are numerous.

Nice chatting with you.

Regards.