Finance issue brief: insurance reform

Individual and small group market reforms are intended to increase access to health insurance. The majority of the working uninsured are employed by small businesses, prompting state legislatures to make changes in the small group market. Many states did this on their own; however, to ensure that health insurance was reaching the most people possible, the federal government enacted the Health Insurance Portability and Accountability Act (HIPAA) of 1996. This act required states without extensive law in the small group and individual insurance market to enact laws to comply with provisions such as guaranteed issue, guaranteed renewal, preexisting conditions, portability and nondiscrimination. It also delved into other areas, including long-term care, inpatient care after childbirth, medical savings accounts and mental health parity.