Conventional health insurance: A decade later

Area of Science:

• Health Economics
• Health Services Research
• Insurance Studies

Background:

• Examining 1987 conventional health plans and comparing 1987 group health insurance with 1977 data.
• Assessing shifts in employer-sponsored health insurance over a decade.

Purpose of the Study:

• To analyze the evolution of conventional health plans in the group insurance market.
• To compare the landscape of group health insurance in 1987 versus 1977.

Main Methods:

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

Main Results:

• Conventional health plans' market share decreased from 95% to 73% between 1977 and 1987.
• A majority of individuals with conventional group insurance were enrolled in self-insured plans by 1987.
• Prospective utilization review adoption surged post-1984.
• Patient cost-sharing mechanisms saw an increase, though less than commonly perceived.

Conclusions:

• Significant market share loss for conventional health plans over the decade.
• The rise of self-insured plans and utilization reviews reshaped group health insurance.
• Patient cost-sharing trends warrant nuanced understanding beyond conventional assumptions.