Health coverage is becoming less affordable for Californians in both the small-group and individual insurance markets, but affordability problems are showing up in very different ways in the two markets, according to a paper published yesterday on the Health Affairs web site.
Premiums paid by employees for small-group coverage in California increased 53 percent between 2003 and 2006, from $250 in 2003 to $382 in 2006. Premiums for individual coverage rose only 23 percent between 2002 and 2006, from $211 in 2002 to $259 in 2006.
However, the average actuarial value of individual coverage declined dramatically: Individual-market policies paid 75 percent of medical costs on average in 2003 but only 55 percent in 2006. In contrast, small-group policies retained their actuarial value, paying for roughly 83 percent of medical expenses across the period. Read the abstract.
