Comparison of Small Group Rates in California: HIPC versus Non-HIPC

Publication Date: September 1999

Publisher: California HealthCare Foundation

Author(s): Karen K. Shore; John Bertko

Research Area: Health

Type: Report

Coverage: California


There has been much discussion about the ability of health insurance purchasing cooperatives to save money for participating employers. In California, a small group purchasing pool -- the Health Insurance Plan of California (HIPC) -- was created in 1993 to serve small employers. In 1997, HIPC had about 7,000 participating employers representing 134,000 enrollees. This project examined small group health insurance rates in California, looking specifically at rates from HIPC (now called PacAdvantage) and comparing them to small group rates available outside HIPC. Although some health plans participating in HIPC had multiple product offerings such as HMO, PPO, and Point of Service (POS) during the analysis period, this analysis is limited to HMO products.