Conventional health insurance: a decade later

Area of Science:

• Health Economics
• Health Services Research
• Insurance Studies

Background:

• Conventional health plans dominated the group insurance market in 1977.
• Significant shifts in employer-sponsored health insurance occurred throughout the 1980s.

Purpose of the Study:

• To examine conventional health plans in 1987.
• To compare 1987 group health insurance with 1977 offerings.

Main Methods:

• Analysis of data from a 1987 national survey of 771 private and public employers by the Health Insurance Association of America.
• Comparison with data from the 1977 National Medical Care Expenditures Survey.

Main Results:

• Conventional health plans' market share decreased from 95% in 1977 to 73% in 1987.
• Self-insured plans became the majority option for Americans with conventional group insurance.
• Prospective utilization review adoption surged post-1984.
• Patient cost-sharing increased, though less than commonly believed.

Conclusions:

• The landscape of group health insurance underwent substantial transformation between 1977 and 1987.
• The rise of self-insurance and utilization review marked key changes in health plan management.