Source: Kaiser Family Foundation
Groups dropping coverage is a significant trend – especially small groups. According to the 2015 Small Business Health Care Survey report by the National Small Business Association, even though nearly 90 percent of small businesses view health insurance as important to recruiting and retention, the number of companies offering health-related benefits actually dropped by five percent from 2014 to 2015. This is reinforced by recent data from the Kaiser Family Foundation, which indicates that employers with 3-49 workers offering coverage has dropped from a high in 2010 of 66 percent to 52 percent in 2014.
This disaggregation of small businesses is helping to fuel rapid growth in the individual market. In some regions, small groups are disaggregating swiftly, while in others the change is more gradual. Regardless of the timing, however, industry analysts and recent industry research concur that the shift to individual health coverage is undeniable. At the end of the first quarter of 2015, more than 20.1 million people had enrolled in individual, non-group medical plans, nearly double the number who were enrolled at the end of 2013, according to the Kaiser Family Foundation and Mark Farrah Associates.
Insurer-led individual exchanges will play a key role in capitalizing on this individual market growth – but only if they meet the high e-commerce expectations of consumers and help migrate users from group to individual coverage. Strong integration of individual and group-focused marketplaces is key to achieving a “member-for-life” approach to consumers.
