Most Americans receive their health coverage through the private insurance market, usually through their jobs. However, many people buy insurance on their own in the individual market. Since coverage from private companies is the largest source of insurance for Americans, it is likely to be a central part of federal and state health reform efforts.

The accessibility, affordability, and quality of private insurance must be improved if it is to adequately serve consumers. In order for private insurance to provide Americans with financial protection from health care costs while also covering the services that they need, stronger consumer protections must be adopted in all private insurance markets and included in all health reform efforts. The protections needed include those that do the following:

prevent unaffordable premium hikes,

guarantee that the benefits covered by plans are adequate,

ensure that coverage is available and affordable for high-risk populations and those with pre-existing conditions, and

require that consumers be made aware of their legal rights.
Policies designed to improve the quality of the care that insurance plans cover, such as those that aim to reduce medical errors or that encourage the use of evidence-based medicine, can also help consumers obtain the care they need, if they are enacted in a careful manner.