LOUISVILLE, KY – Humana’s launch of a new portfolio of individual health insurance plans in four states under its HumanaOne brand is the most recent announcement by payers targeting the individual health plan market.
“It’s our belief that this market is growing and the group market is decreasing,” said Steve DeRaleau, COO of HumanaOne.
With a shrinking percentage of small businesses offering health benefits and the erosion of dependent contribution in group plans, payers are responding to market need by introducing plans that provide greater choice and price points.
HumanaOne offers three different plans. In the 11 states that were offered the new plans earlier this year, DeRaleau said, sales shot up 50 percent in one month.
Blue Shield of California (BSC) launched Essential Plan in April 2006. It is available to all its members and most popular with young adults, said Karen Vigil, senior vice president.
BSC launched Vital Shield in July 2007 to address the consumer sticker shock of high deductibles. Vital Shield provides first-dollar coverage on generics and two-office visit coverage. Vigil said thus far it’s been one of BSC’s best product launches.
Blue Cross Blue Shield of Florida (BCBSF) introduced its lower-cost Blue Options plans in 2006, including its Consumer Choice series of plans for young adults and pre-retirees. “Response has been beyond our original projections,” said spokeswoman Valerie Rubin.
BCBSF adopted a “retail transformation strategy” two years ago. “The idea is to focus on the end consumer, decide what s/he wants to buy, and offer her or him convenient ways to buy it,” Rubin said.
Cigna is focusing its individual market on the retiree population. “As increasing numbers of Cigna members head toward retirement, our entry into the senior market helps ensure retirees can continue to receive coverage similar to what they enjoyed under their employer’s Cigna health plan,” said spokesman Joseph Mondy.
Approximately one-third of the uninsured population is actively shopping for health insurance, said Carl Doty, senior analyst for Forrester Research. Despite the combination of the growing population of uninsured nationally and state-level reforms, the individual market is largely a regional phenomenon.