Mark Farrah Associates Assesses the Small Group Health Insurance Market
KENNEBUNK, Maine--(BUSINESS WIRE)--Small group health insurers provided coverage for 16.687 million people through policies written within 1.453 million small employer groups in 2013, according to an analysis brief recently released by Mark Farrah Associates (MFA). The year-over-year trend continues to show a decline in the number of covered lives and groups. MFA's analysis of the latest Supplemental Health Care Exhibit (SHCE) data revealed insurers reported providing coverage for 93,000 fewer small employer groups in 2013 when compared with the previous year. Nonetheless, this sizeable market remains an attractive business target for commercial health insurers.
Three leading health insurance companies - UnitedHealth, WellPoint and Health Care Service Corporation - dominated with respect to underwriting gains in 2013, accounting for 71% of segment profits. The combined 71% share of profits is notable considering these carriers account for only 33% of total covered lives in the small group market. When assessing total covered lives, five top health insurers, collectively, provide coverage for more than 8 million people, owning 49% of the insured small group market.
Looking forward, a potential game-changer in the small group market will be the implementation of the Small Business Health Options Program better known by the acronym SHOP. This program was originally set to open the same day as the individual exchange in October of 2013 but has been delayed until November of 2014 for coverage beginning January 2015. Eligibility for the 2015 year is limited to employer groups of 50 or less but will increase to 100 or less for 2016.
Detailed information on small group health plans, the Supplemental Health Care Exhibit and other data filed with the National Association of Insurance Commissioners (NAIC) is available in Mark Farrah Associates' Health Coverage Portal™.
To read the full text of "The Small Group Health Insurance Market", visit the Analysis Briefs library on Mark Farrah Associates' website www.markfarrah.com.
About Mark Farrah Associates (MFA)
MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include Medicare Business Online™, Medicare Benefits Analyzer™, Health Coverage Portal™, County Health Coverage™, Health Insurer Insights™, and Health Plans USA™.
Mark Farrah Associates
Ann Marie Wolfe, 207-985-8484