Summary

Most health care reform proposals before Congress expect the states to implement and enforce new requirements on private health insurers--a responsibility that may require states to undertake new regulatory tasks and regulate new organizations. GAO surveyed the insurance departments of all 50 states and the District of Columbia and visited the insurance departments in the following states: California, Colorado, Illinois, New York, Texas, Vermont, and Virginia. This testimony discusses the (1) portion of the health insurance market now regulated by state insurance departments, (2) budget and staff that state insurance departments earmark for regulating health insurance, and (3) key activities insurance departments perform. GAO also provides its views on how several health care proposals might affect the activities of states and their insurance departments.