Health Care Reform: Supplemental and Long-Term Care Insurance

Pursuant to a congressional request, GAO discussed provisions of the proposed Health Security Act, focusing on existing problems with private long-term care and supplemental health insurance. GAO noted that: (1) the administration's proposal for long-term care insurance provides consumer protection against unfair or deceptive marketing practices; (2) most existing health insurance policies do not meet current minimum standards; (3) the proposal's long-term care provisions set comprehensive standards for policy content and marketing, but it does not address policy sales to low-income persons; (4) the proposal requires the Secretary of Health and Human Services to develop regulations to curb marketing abuses; (5) the proposal addresses some problems with vague or confusing eligibility criteria; (6) the proposal excludes many types of supplemental health insurance that cover specific diseases or conditions requiring hospitalization; and (7) the proposal prohibits the sale of policies that duplicate coverage, but it does not address other insurance marketing abuses.