December 2, 2009
Mark Farrah Associates Found Growing Individual Health Insurance Market

KENNEBUNK, Maine--(BUSINESS WIRE)--Insurers reported that more than 9.7 million people were covered by non-group or individual major medical health insurance products as of June 30, 2009, up from 9.6 million as of June 30, 2008. Major medical insurance is a comprehensive form of health care coverage that provides benefits for most types of medical expenses. Individual major medical coverage excludes Medicare recipients and people enrolled in other government sponsored programs such as Medicaid and SCHIP. With unemployment at a 25-year high and the number of people without access to group-sponsored or government-sponsored coverage growing, many insurers diversified product portfolios to provide affordable coverage for individuals. However, for many insurers gains in these new product lines have been slower than expected.

Mark Farrah Associates (MFA), a leading provider of market data and intelligence solutions, found that group major medical membership has declined by more than 9 million in the last two years. Overall, individual, major medical membership increased by just over 145,000 from June 2008 to June 2009 and less than 600,000 over the last two years. Growth in these products has been stymied by the same trends impacting group plans, including the recession and high unemployment rates. Extension of COBRA benefits has also slowed conversion to non-group, individual policies.

MFA’s study found that WellPoint and Health Care Services Corporation lead the non-group major medical segment based on membership. While many insurers saw declines in this sector, Humana increased enrollment substantially.

In the latest Healthcare Business Strategy report, MFA reviewed individual major medical market enrollment trends. To read the full text of “Growing Individual Health Insurance Market,” visit the Healthcare Business Strategy library on Mark Farrah Associates’ website www.markfarrah.com. Major medical coverage is just one type of health insurance available to individuals and a broader study is underway to look at trends for other products offered to individuals such as limited coverage options and short-term medical insurance.

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™, the new Medicare Benefits Analyzer™, Health Coverage Portal™, Health Insurer Insights™ and Health Plans USA™.

Contacts:
Mark Farrah Associates
Debra Donahue, 207-985-8484