Summary: Provisions of the Clinton administration's Health Security Act that deal with private long-term care insurance and supplemental health insurance address many of the problems that GAO has pointed out in the past. The act has detailed sections governing the content and marketing of such insurance, including disclosure standards that protect consumers from deceptive marketing practices, grievance procedures that allow policyholders to contest insurance company decisions, and sales commission standards that discourage questionable sales practices. In general, GAO believes that the administration's proposal contains the kinds of consumer protections that GAO has long advocated. Some problems, however, are not addressed. Specifically, the act will not protect consumers from the sale of duplicate policies or high-pressure sales techniques. It also does not address other kinds of supplemental insurance that cover specific diseases or conditions requiring hospitalization. Because of their limited, narrow coverage, such insurance may be unnecessary for many consumers.
