Comments on the Economic Implications of the Proposed Florio Amendment to the Nondiscrimination in Insurance Act

GAO was asked to analyze a substitute to H.R. 100, proposed legislation which would prohibit distinctions based on race, color, religion, sex, or national origin in the marketing and pricing of insurance and pension contracts. The bill would have required that: (1) sex-distinct premiums and benefits in the contracts be equalized; and (2) no one's benefits be reduced as part of the equalization process. The substitute bill would: (1) allow sex distinctions to continue in existing contracts; (2) delete the provision that no one's benefits would be reduced as part of the equalization process; (3) prohibit targeted marketing of insurance; and (4) extend the transition period.