COD E R E D

more conceptually feasible. Whether this approach is operationally and politically feasibleremains an important question for consideration by the Task Force.Third, this analysis also suggests that the state has made only modest use of its powerto regulate products purchased in the non-group market, when compared to other states. Mostnotably, the state appears not to have extended certain basic protections to self-employedindividuals that are in use in other states. Nor does Texas provide basic conversion protectionor other bridging arrangements for persons losing group coverage, who do not qualify for HIPAAprotections. Finally, of course, the evidence suggests that the state does not offer the premiumcontrols and cross subsidies available in other states.Whether more aggressive approach to regulation and pooling reform would significantlyalter the insurance picture in the absence of considerable subsidization cannot be known forsure. This is because states that show radically different insurance patterns experience thesedifferences for many reasons that go well beyond their willingness to regulate the market. At thesame time, the information presented here suggests that certain reforms in the individual andsmall group market are worthy of consideration, as is a more comprehensive approach to createa “state purchasing pool” using the state’s considerable power to affect market conditionsthrough the purchase of health benefit plans for public employees.F-12