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Related Experiment Videos

Pooled purchasing: who are the players?

S H Long1, M S Marquis

  • 1RAND, Washington, D.C., USA.

Health Affairs (Project Hope)
|July 30, 1999
PubMed
Summary
This summary is machine-generated.

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Employer pooling of health insurance purchasing is common, especially for small businesses. While it modestly improves employee plan choice and quality information, it does not enhance insurance accessibility or affordability for employers.

Area of Science:

  • Health Services Research
  • Health Economics
  • Insurance Markets

Background:

  • Employer-sponsored health insurance is a primary source of coverage in the United States.
  • Small businesses often face challenges in accessing and affording health insurance for their employees.
  • Group purchasing arrangements, or pooling, are one strategy to address these challenges.

Purpose of the Study:

  • To estimate the national prevalence of employer purchasing pools.
  • To examine the effects of pooling on plan choice, quality information, accessibility, and affordability.

Main Methods:

  • Analysis of data from the 1997 Robert Wood Johnson Foundation Employer Health Insurance Survey.
  • Estimation of pooled purchasing prevalence across different business sizes and geographic locations.

Related Experiment Videos

  • Statistical analysis of the association between pooling and insurance market characteristics.

    • Main Results:

    • Approximately one-quarter of businesses participate in purchasing pools, with higher participation among smaller businesses.
    • Significant geographic variation exists in the prevalence of pool participation.
    • Pooling shows modest positive effects on employee choice of health plans, particularly Health Maintenance Organizations (HMOs), and on the availability of quality information.
    • Pooling does not appear to improve insurance accessibility or affordability for employers.

    Conclusions:

    • Employer purchasing pools are a notable feature of the health insurance landscape, particularly for small businesses.
    • While pooling offers some benefits regarding plan choice and information, its impact on broader market accessibility and affordability remains limited.
    • Further research may be needed to explore alternative pooling structures or complementary policies to enhance insurance accessibility and affordability.