MHA Press Room

Survey: Enrollment in consumer-driven health plans remains low

Only 2% of privately insured adults were enrolled in a consumer-driven health plan in 2007, according to a new survey by the Employee Benefit Research Institute and Commonwealth Fund. The survey defines consumer-driven health plans as those that combine a deductible of $1,000 or more with a tax-advantaged health savings account or health reimbursement arrangement, which the individual can use to pay for medical expenses or take with them when they change jobs.

“So far there is little evidence that the tax benefits of consumer-driven health plans have the potential to help change the trajectory of health care cost growth, are leading health plans or providers to provide more information about the quality and price of services to patients, or are decreasing the number of people without health insurance,” the authors conclude. About 11% of privately insured adults in 2007 had a high-deductible health plan without an HSA or HRA, the survey found.

BCBSA issues plan to expand access to coverage

The Blue Cross and Blue Shield Association on Jan. 23 proposed a five-point plan to improve quality and value in health care and expand health insurance coverage. The proposal calls on the government to create an independent institute to support research on the comparative effectiveness of medical procedures, drugs and devices, which would be funded by assessments on private and public health coverage.

The plan also calls for the government to: use the Medicare Advantage program to promote management of chronic illness; enact reforms to encourage employee wellness programs; provide tax assistance for employers and families to purchase health coverage; reauthorize the State Children’s Health Insurance Program to cover all currently eligible children; and allow states to pay the employee premium for Medicaid- and SCHIP-eligible children of working parents.

[ via AHA News Now ]

A different kind of insurance policy for the uninsured

In an attempt to help people obtain health insurance, America's Health Insurance Plans (AHIP), a national trade association representing insurance companies, presented a proposal last month that is designed to provide insurance for individuals who may have been denied health coverage in the past due to health risks and complications.

Drafted by a group of insurance executives, the proposal aims to make it more difficult for insurers to deny coverage to people with pre-existing medical problems and to limit the cost of premiums. The proposal also calls for states to provide coverage for any patient whose medical costs are twice the average.

According to a related AHIP survey, 11% of all people who currently apply for health care are not offered a policy after their medical status is reviewed by insurers. Furthermore, 30% of all applicants in their 60s who do not yet qualify for Medicare are denied coverage.

Panel supports private-public mix to achieve universal coverage

The most practical approach to universal health coverage would build on the best features of the nation’s current public-private system, with individuals, employers and government sharing responsibility for financing, the Commonwealth Fund Commission on a High Performance Health System concludes in a new report. The report presents principles for assessing health care reform proposals based on their ability to achieve both universal health coverage and high-quality care that’s cost efficient.

A mixed private-public approach would allow the 160 million people with employer-based health coverage to retain it, instead of asking them to enroll in a new program, the commission said. “This approach would build on the best features of our current system while addressing its most serious shortcomings: gaps in coverage and the absence of the incentives, organization and infrastructure required for a high performance health system,” the report adds.

Study examines latest changes in health insurance coverage

The proportion of non-elderly Americans with health insurance declined to 82.1% in 2006, according to a new study of Census Bureau data by the Employee Benefit Research Institute. Based on the Bureau’s March 2007 Current Population Survey, 62.2% of U.S. residents under age 65 had employment-based health benefits last year, while Medicaid and the covered 13.4%.

“It appears that 2005 might be the beginning of a new trend, where the erosion in employment-based coverage is not being offset by expansions in public programs,” the report concludes. Last year nearly two thirds of uninsured workers were self-employed or working in private-sector firms with fewer than 100 employees, the study notes.

One-third of the uninsured were in families earning less than $20,000 a year.

[ via AHA News Now ]

Study: SCHIP expands coverage, access for kids

The State Children’s Health Insurance Program has reduced the number of low-income uninsured children by nearly one-third and increased children’s access to health care, according to a new study by Mathematica Policy Research that was conducted for the Centers for Medicare & Medicaid Services. The number of uninsured low-income children fell to 6.1 million in 2003 from 7.9 million in 1997 when the program started, while the proportion of low-income uninsured children fell to 20% from 25%, the study found.

SCHIP also “increased the likelihood of having a usual source of care, reduced the level of unmet need, and improved access to dental care,” the report adds. Senate Finance Committee Chairman Max Baucus (D-MT) applauded the new evidence that SCHIP is “fulfilling its mission,” but criticized CMS for what he called “apparent manipulation” of part of the report.

“While the original report said the substitution of private health coverage with SCHIP coverage (crowd-out) was ‘not an issue,’ the final report with CMS-requested edits eliminates that phrase and instead emphasizes the fact that some ‘crowd-out’ does occur,” Baucus said in a news release.

[ via AHA News Now ]

BLS reports on employee benefits

An estimated 60% of private employers offered health insurance to workers in March 2007, according to a new report from the Bureau of Labor Statistics. Firms employing fewer than 100 workers were less likely to offer insurance (59%) than larger firms (93%).

About three-quarters of medical plan participants were required to contribute to the cost of single coverage, while 87% were required to contribute to the cost of family coverage. Employee contributions for medical care premiums averaged $81.37 per month for single coverage and $312.78 per month for family coverage. On average, employees paid 19% of the premium for single coverage and 29% of the premium for family coverage.

The findings are from the National Compensation Survey.

Most workers view health insurance as top benefit, survey finds

Three-quarters of workers view health coverage as the most important employee benefit, according to a new poll by the National Business Group on Health. At least 60% of respondents said it was important to have a health plan that’s easy to manage, lets them choose their doctors, and limits their cost for doctor visits and prescriptions.

Three-quarters would prefer to receive health benefits through their employer than additional salary to purchase their own, and six in 10 would oppose having their employer’s contribution to their health plan premium treated as taxable income. “The fact that so many employees are opposed to giving up any aspect of their health benefits, even in return for an improvement in other benefits, speaks volumes as to just how important they are from a worker and employer perspective,” said NBGH President Helen Darling.

AHIP: 4.5 million enrolled in health savings account plans

Roughly 4.5 million Americans are enrolled in a high-deductible health plan associated with a health savings account, according to a survey released April 2 by America’s Health Insurance Plans. That’s 1.3 million more than AHIP reported a year ago.

Enrollment in the individual market rose to 1.1 million from 855,000, of which 27% were previously uninsured, AHIP said. Enrollment in the group market rose to nearly 3.4 million from 1.4 million.

Report urges disclosure, oversight and standards for health insurance

A study released March 22 by the Access Project and Brandeis University calls for standards and state requirements to ensure health insurance products are comprehensive, affordable and accessible. Based on interviews with 45 people in seven states who had accrued medical debt while privately insured, the study concludes that “their insurance failed to fulfill its primary function - to protect them from financial losses and guarantee access to needed care when they became ill.”

Among other concerns, the authors say common insurance company practices such as ineffective customer service and a lack of transparency regarding insurance rules make it difficult for consumers to deal with denied, disputed and underpaid claims. They say new public policy initiatives are needed to promote insurance company accountability and protect consumers.

[ via AHA News Now ]