A comprehensive survey of the in-dividual health insurance market recently released by America's Health Insurance Plans found that premiums are affordable, most who applied were offered coverage, and consumers have access to a wide variety of benefit options to meet their individual needs.
According to the survey, nearly 9 out of 10 applicants (89 percent) who went through the application process were offered coverage. Forty percent of these offers were at standard premium rates, and 49 percent were offered at lower (preferred) rates.
Nationwide, annual premiums averaged $2,613 for single coverage and $5,799 for family plans in the 2006-07 period. Premiums varied by state, reflecting a variety of factors, including premium rating and underwriting rules, differences in health care costs, demographics, and consumer benefit preferences.
Premiums were significantly higher in states with restrictions on premium variation and underwriting, often known as "guaranteed issue" and "community rating." However, approximately 95 percent of the policies surveyed were sold in states where the average annual premium was less than $3,400 for single coverage or $7,200 for family coverage.
Consumers in the individual market were offered a wide range of benefits, including mental and behavioral health, prescription drugs, preventive medicine, and maternity benefits. Some form of behavioral health coverage was included in 9 out of 10 policies purchased. Coverage for complementary and alternative therapy was also popular, while consumers chose vision and dental coverage much less frequently.
The most commonly purchased coverage option was preferred provider organization/ point-of-service coverage, representing 78 percent of single pol-icies and 66 percent of family policies in force.
Health savings accounts (HSAs) continue to be a popular coverage option among consumers in the individual market. Ten percent of single policies and 23 percent of family policies chosen provided coverage in conjunction with an HSA.
