I have USAA auto insurance. And home. In between I needed motorcycle insurance and USAA doesn't do that, so the pointed me to Progressive (Mmmmm.... Flo.... ). But I digress. The point is, when I wanted to get health insurance, I called up USAA (which is based in San Antonio IIRC). They theoretically could've given me health insurance here in Oregon except: 1) I'd just injured my knee and Oregon law prevents them from adjusting the coverage or rates to factor in that risk and 2) I stupidly admitted that I smoked a half a cigar in November, when my friend had a baby girl and again, Oregon law to "protect" me meant that USAA was unwilling to insure me based on Oregon law.
It's a question of scale - with a state-limited company, by definition, the company's power is also limited. If the feds have control, the power to continue the abuse is practically endless.