Small Business Health Insurance in California 2011 - A Snapshot
In terms of insured lives, the small business health Insurance market (companies with fewer than 50 employees) is but a small subset of the overall employer-sponsored or group health insurance market of approximately 15 million Californians. Some 3 million Californians, have health coverage through small business health insurance plans representing 9% of the total population.of 38 million.
Market Share Among Insurers
Currently, four of the largest commercial insurers cover over three-fourths of the small group enrollees. Small group enrollment is distributed nearly equally between HMO and PPO products: 46% in HMOs and 54% in PPOs. Similarly, enrollment is close to evenly split between the two regulators: the Department of Managed Health Care (DMHC) having 54% of enrollees and the California Department of Insurance (CDI) having 46%.
Trending to High Deductible Plans
Small business health insurance enrollees are now more likely to be enrolled in high-deductible plans (35%). Enrollees often trade higher out-of-pocket costs at the time of service for lower premium contribution amounts.
Actuarial Values Substantially Higher than Individual Plans
Actuarial values confirm that the coverage obtained through small business health insurance is substantially more comprehensive than individual health insurance coverage. Even high-deductible small business health insurance plans have significantly higher actuarial value than individual plans.