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Related Experiment Video

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Inverse Probability of Treatment Weighting (Propensity Score) using the Military Health System Data Repository and National Death Index

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Premium increases and disenrollment from state risk pools

S C Stearns¹, T A Mroz

¹Department of Health Policy and Administration, School of Public, University of North Carolina at Chapel Hill 27599-7400, USA.

Inquiry : a Journal of Medical Care Organization, Provision and Financing

|January 1, 1995

Summary

State risk pools offer health insurance to medically uninsurable individuals. Premium increases, whether planned or due to aging, significantly drive enrollment disenrollment from these risk pools.

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Area of Science:

Health Economics
Public Health Policy
Insurance Markets

Background:

State risk pools provide health insurance for individuals unable to obtain coverage due to medical conditions or high costs.
Enrollment durations in these pools vary, with some individuals staying long-term and others exiting relatively quickly.

Purpose of the Study:

To analyze the duration of enrollment in eight state risk pools.
To identify factors influencing voluntary disenrollment from these pools using historical data.

Main Methods:

Utilized data from eight state risk pools spanning from 1988 to 1991.
Employed a discrete time hazard model to estimate relationships between disenrollment and enrollee/plan characteristics.

Main Results:

Identified significant correlations between premium changes and disenrollment rates.
Observed substantial increases in disenrollment in response to premium hikes, whether initiated by the plan or due to enrollee aging into higher risk categories.

Conclusions:

Premium adjustments are a key driver of voluntary disenrollment from state risk pools.
Understanding these dynamics is crucial for the sustainability and effectiveness of state-sponsored high-risk health insurance pools.