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Health: Small Group Market Reforms

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Report Type Reports and Testimonies
Report Date March 12, 1992
Report No. HRD-92-27R
Subject
Summary:

In response to the developing crisis of affordability and availability of health insurance for small firms, Congress is considering legislation to reform the small group health insurance market. This letter, drawing on past and ongoing GAO work, examines the effect of small group reforms on premium costs, the nature of state reforms and their results, and whether state insurance departments have adequate resources to ensure regulatory compliance with reform proposals. GAO is concerned that current reform proposals neither stop nor reduce the rising cost of health care, the major reason small businesses give for not providing health benefits. GAO concludes that small group market reforms at the state level have induced few small businesses to provide health benefits to their employees.

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