Qualitative Overview: Major Market Players and Their Product Lines

Publication Date: February 2003

Publisher: California HealthCare Foundation

Author(s): Joan Trauner

Research Area: Health

Type: Report

Coverage: California

Abstract:

Rapidly rising health care costs have brought swift change and mounting complexity to California's health insurance markets. Activity in the price-sensitive small group and individual markets is of special interest, because these sectors are often a testing ground for new benefit designs and cost-sharing trends. This study, conducted by a team led by Joan B. Trauner, Ph.D., examined the premiums and products available in these markets in 2001 and 2002. The study differs from other valuable research on benefit design in that it focused on the supply side of the market. It captured benefit and premium changes as they were instituted, as opposed to documenting average purchases after the fact. The study also differs from other research in its focus on the often-neglected individual and small group sectors. In the individual market, the study catalogs the full range of product offerings and provides benefit details. In the small group market, the study examines benefits for a commonly purchased product for each health plan. The study also provides information on pricing patterns, sales commissions, and market conditions.