Small Group Market Reforms

HRD-92-27R: Published: Mar 12, 1992. Publicly Released: Mar 12, 1992.

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Pursuant to a congressional request, GAO provided information on state-level small group health insurance market reforms. GAO found that: (1) states have legislated such regulatory reforms as limiting rating practices and restricting premium prices, mandating that insurance companies cover all persons in an insured group, requiring continuation of coverage for those already insured, and requiring disclosure of insurance policies; (2) such reforms have induced few small businesses to provide health benefits to their employees and states are concerned that the reforms lowering prices for high-risk individuals will generate increases in premiums; and (3) state insurance departments may lack sufficient resources to enforce new regulations.

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