GAO Reports  
OGC-97-39 April 24, 1997

Interim Rules for Health Insurance
Portability for Group Health Plans

The Departments have prepared a combined economic impact analysis for this interim final rule and the interim final rule issued by the Department of Health and Human Services, and published the same day in the Federal Register, concerning individual market provisions because the effects of the reforms and burdens imposed overlap the same group of issuers. 62 Fed. Reg. 16908-16920.

For group health plans coverage under these rules, the Departments cite estimates formulated by the Congressional Budget Office which shows the initial yearly cost (direct cost to the private sector) to be $50 million with 300,000 people covered and $200 million in subsequent years for limiting the length of preexisting conditions exclusions to 12 months. For creditable coverage, the CBO estimate is $25 million for the first year and $100 million per year thereafter.

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