Medigap reform legislation of 1990: have the objectives been met?
McCormack, Lauren A
Date of Pub
Fox, Peter D; Graham, Marcia L; Rice, Thomas
The 1990 medigap reform legislation had multiple objectives: To simplify the insurance market in order to facilitate policy
comparison, provide consumer choice, provide market stability, promote competition, and avoid adverse selection. Based on
case study interviews with a cross-section of individuals and organizations, we report that most of these objectives have
been achieved. Consumers of medigap plans are able to make more informed choices, largely because they can adequately compare
policies based on standard benefits. Marketing abuses have apparently declined, as evidenced by a decrease in the number of
consumer complaints. Finally, no major detrimental impact on the insurance industry was detected. Beneficiaries still face
some confusion in this market, however, such as understanding the rating methodologies used to set premiums and how this may
affect their choices. Confusion could increase with the growth of managed care options.
Aged : Capitation Fee : Consumer Participation : Economic Competition : Evaluation Studies : Health Care Reform/legislation
& jurisprudence : Health Maintenance Organizations/economics/utilization : Human : Insurance Benefits : Insurance Selection
Bias : Insurance, Medigap/economics/legislation & jurisprudence/utilization : Organizational Objectives : Support, Non-U.S.
Gov't : United States : United States Health Care Financing Administration