Reforms in the small group and individual insurance markets could make it e
asier for the currently insured to keep their coverage, and could expand co
verage by making insurance more accessible to the currently uninsured. We u
se data from the 1989 through 1995 Current Population Survey to measure the
impact of these reforms on state-level rates of uninsurance and private he
alth insurance coverage. Instead of examining the effect of each of the var
ious types of insurance market reforms, we estimate the impact of packages
of reforms on insurance coverage, reflecting how policies were implemented.
We find that small group reforms have done little to affect insurance cove
rage. Individual market reforms, on the other hand, appear to increase unin
surance rates and reduce private coverage. Our findings suggest that small
group reforms may have prevented erosion of private coverage, but have not
reduced the numbers of uninsured people.