The goal of most insurance market reform initiatives is to materially change the nature of competition in health insurance markets by prohibiting, or severely limiting, the marketing, rating, and underwriting practices that identify and select the most favorable risks while rejecting the least favorable. Requirements that often accompany insurance market reform proposals include prohibition of experience rating in favor of modified community rating, open enrollment, use of a standard benefit package and elimination of preexisting conditions exclusions. Imposition of such regulations would have the effect of reducing the rate differential among groups, and among competing insurers. However, while premium costs would fall for some groups, they would rise for others.

This definition is in context to Health Care. See more contextual defintions for Insurance Market Reform.