title: Medigap reform legislation of 1990: a 10-year review.
abstract: The 1990 Medigap reform legislation sought to make it easier for consumers to compare policies, provide market stability, promote competition, and avoid adverse selection. Evidence is that the standardization of benefits has simplified consumer choice and is strongly supported by consumers and State regulators. The 1990 reforms also decreased carrier and agent abuses. However, loss ratios (the proportion of premiums paid in benefits versus being retained for administration and profit) have changed little since 1990, bringing into question whether price competition has been enhanced. The prescription drug benefit, which is included in 3 of the 10 standardized plans, provides only limited financial protection yet is expensive, one reason being adverse selection. Access to coverage for Medicare disabled beneficiaries is problematic in most States.
authors.affiliation: peterfox8@earthlink.net
authors.forename: Peter D
authors.initials: PD
authors.lastname: Fox
authors.forename: Rani E
authors.initials: RE
authors.lastname: Snyder
authors.forename: Thomas
authors.initials: T
authors.lastname: Rice
mesh_terms: D000368:Aged; D003256:Community Participation; D018166:Health Care Reform / Q000331:legislation & jurisprudence*; D006801:Humans; D017054:Insurance, Medigap / Q000191:economics / Q000331:legislation & jurisprudence* / Q000592:standards; D007356:Insurance, Pharmaceutical Services / Q000191:economics / Q000331:legislation & jurisprudence; D006278:Medicare / Q000331:legislation & jurisprudence*; D011050:Policy Making; D014481:United States