Small businesses are concerned about the price of health insurance as a key part of their budget. Since Obamacare has been signed into law, owners of these businesses have been discontinuing coverage. Insurance carriers have noticed this, and thus, the premiums for these small group plans have increased.
Employers looking for affordable group plans can find them at MediBid. Businesses can greatly reduce their costs by using the free market available with physician competition and price transparency at MediBid. Contact us for a no-obligation discussion with one of our experienced benefits consultants.
Small Group Health Insurance Enrollment Declined, Study Finds
August 2, 2012
KENNEBUNK, Maine–(BUSINESS WIRE)– In 2011, nearly 18 million people received comprehensive health insurance through fully-insured small group policies, compared to nearly 42 million people who received similar coverage through fully-insured large group policies, according to a new Healthcare Business Strategy report released by Mark Farrah Associates (MFA). Using information from the Supplemental Health Care Exhibits that insurance carriers file annually with the National Association of Insurance Commissioners (NAIC), MFA analyzed the small group health insurance market and found enrollment declined 1.5% between 2010 and 2011. While small group enrollment declined more than one percent, the total number of small employer insured groups, as reported by health plans, declined eighteen percent (18%), from 2.03 million small groups in 2010 to 1.67 million small groups in 2011.
Historically, a primary budget concern for small business owners has been the price of health insurance. The perception that small business owners paid significantly higher premiums than larger employer groups appears unfounded, according to the analysis. Based on 2010 and 2011 data, small group adjusted premiums per member per month were $4.17 and $4.86 less, respectively, than what large groups paid.
MFA also noted that leading competitors in the small group market are UnitedHealth, WellPoint, Aetna and Health Care Service Corporation (HCSC). Together these four plans insure 41% of the total small group market. Detailed information on small group health plans, the Supplemental Health Care Exhibit and other data filed with the NAIC is available in Mark Farrah Associates’ Health Coverage Portal™. To read the full text of “Small Group Health Insurance Enrollment Declined,” visit the Healthcare Business Strategy library on Mark Farrah Associates’ website www.markfarrah.com.