Commonwealth Fund Study Based on Flawed Methodology
WASHINGTON, Sept. 14 /PRNewswire/ -- Consumers seeking health insurance
in the individual market find more choices, broader benefits and greater
affordability than is widely known. Moreover, the vast majority of
consumers who apply for coverage in the individual insurance market are
approved without restrictions, and the benefits commonly purchased by
consumers provide substantial financial protection.
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These are among the key findings from a survey conducted last year by
America's Health Insurance Plans (AHIP). Based on detailed benefits data
from AHIP member companies that are active in the individual market, the
AHIP survey reflects the experiences of 1.9 million policyholders and 3.2
million covered lives. It is the most comprehensive study of the individual
market undertaken to date.
By contrast, a study released today by the Commonwealth Fund
characterizes the individual market based on a telephone survey that
includes just 137 people who currently have coverage purchased through the
individual market.
The Commonwealth report also claims that "most adults who seek to
purchase insurance coverage through the individual market never end up
buying a plan, finding it either very difficult or impossible to find one
that met their needs or is affordable." However, those defined as "seeking"
coverage include any respondent who "ever thought about" buying individual
coverage in the past three years.
AHIP's member survey, however, is based on the experiences of several
million consumers who actually did seek coverage in the individual market,
and it found that even in states that allow insurers to consider an
applicant's medical history, nearly nine out of ten people who completed
the application process for non-group insurance were offered coverage.
"The data could not be clearer: coverage purchased in the individual
market is accessible and affordable," said AHIP President Karen Ignagni.
AHIP's survey, Individual Health Insurance: A Comprehensive Survey of
Affordability, Access, and Benefits, was released in August 2005 and found
that:
* The "typical" policy purchased by consumers in the individual health
insurance market is a preferred provider organization plan with an
annual deductible close to $2,000, annual out-of-pocket limits of about
$4,000 and a lifetime maximum benefit of nearly $5 million.
* In 2004, the annual premium for single coverage averaged $2,268 and the
average annual premium for family coverage was $4,424. By comparison,
annual premiums for employer-sponsored health plans during 2004 averaged
$3,696 for single coverage and $9,948 for family coverage.
* More than 90% of the single policies surveyed were sold in states where
the average premium was under $3,000, and 98% of family policies in the
survey were sold in states where the average premium was under $6,000.
* Nearly every plan in the market offered -- and most people purchased --
a prescription drug benefit, coverage for inpatient and outpatient
mental health treatment, coverage for inpatient and outpatient substance
abuse, annual visits to an obstetrician/gynecologist, well-baby care,
and for complications of pregnancy.
* Of those applicants offered coverage in the individual market, more than
three-quarters received their requested coverage at standard rates,
while 22 percent were offered full coverage at higher initial premiums.
Only 1 percent of offers included a coverage exception for a specified
condition.
For more information, please view Individual Health Insurance: A
Comprehensive Survey of Affordability, Access, and Benefits at:
http://www.ahipresearch.org/pdfs/Individual_Insurance_Survey_Report8-26-2005.pdf
America's Health Insurance Plans - Providing Health Benefits to More
Than 200 Million Americans
SOURCE America's Health Insurance Plans
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