The economic downturn is playing a major role in the rise of individual health plans.
"Individual health plan sales are definitely increasing," said Mark Wright, spokesman for Blue Cross and Blue Shield of Florida. He said several reasons are driving the spike: People are losing jobs and their employer coverage, employers are dropping coverage because of cost, and some are directing cash contributions for their employees to buy health insurance for themselves.
"This increase in individual health plans is one of the main reasons we started opening Florida Blue centers throughout the state," said Wright. BCBSFL's sales of individual health plans were 120,000 in 2008, he said, rose to 130,000 in 2009 and stands at 70,000 from January through June 2010.
BlueCross BlueShield of Tennessee launched PersonalBlue in February 2010 to accommodate the growth it was seeing in the individual market, said Kevin Ashpole, director of individual products. "We agree that a weakened economy and displaced workers are primary drivers to growth in the individual market," he said. "However, equally important is affordability."
"We made an effort with PersonalBlue to provide more affordable plans with specific benefit changes that would appeal to Tennesseans," Ashpole said. "These changes allow each person to select a plan that meets their budget."
As of the end of June, PersonalBlue had enrolled just under 88,000 members, said spokeswoman Mary Thompson.
Others are reporting similar growth.
"We are seeing an increase in our individual membership, but it is important to note that Cigna is a new player in the individual market space so our overall membership is small," said spokeswoman Gwyn Dilday. "We attribute our growth to market receptivity to the Cigna brand and our varied products that focus on wellness by offering first dollar coverage for many health prevention tests and screenings."
While WellPoint's affiliated health plans' individual policy sales have "remained relatively constant," according to spokesman Jerry Slowey, Aetna's individual health plans have experienced "strong growth," and the company expects that to continue as a "viable alternative for more consumers," according to spokesman Ethan Slavin.
Aetna, which began offering individual health plans in 2003, has seen an increased interest in the past year in its high-deductible, more affordable premium health plans, he said.
"There will be a continued need for these products as fewer employers offer health benefits to their employees," Slavin said. "In addition, several aspects of the healthcare reform legislation will encourage people who may currently be uninsured to look at individual plans as a potential option."