According to the California Employer Health Benefits Survey released March 27th, 2001, the number of California employers providing health insurance increased from 48% in 1999 to 60% in 2000, but still lags behind national coverage, which rose from 61% in 1999 to 68% in 2000.
The survey shows that the availability of coverage in California varies with the size of the firm and with wage levels. One hundred percent of large firms (200 or more employees) provide health care coverage, 75% of mid-sized firms (10-50 employees) provide coverage and 53% of small firms (3-9 employees) cover their employees. Just 21% of employers with fewer than 200 employees and where over one third of the employees work at the minimum wage rate, offer coverage.
The cost of coverage is lower in California than the rest of the country because HMO’s predominate and are the least expensive type of health insurance. The monthly employer premiums averaged $192 for single coverage and $492 for a family whereas nationally employers pay $202 and $529 respectively.
The rising cost of health insurance is an important short-term issue. In California employer insurance costs increased by 6% in 2000, but the increase was not passed on to employees who continued paying an average 1999 rate of $20 monthly for single coverage and $113 monthly for family coverage. The President of the Kaiser Family Foundation attributed this to employers using low health coverage premiums as an incentive in recruiting and retaining employees in a competitive economy. But as the economy slows it is doubtful that employers will continue to absorb the cost.
The survey found employers unwilling to switch to a ”defined contribution” approach that would entail giving employees money to purchase coverage on an individual basis rather than as a group. Nor was offering employees tax credits so they could buy their own insurance popular with employers in California or nationally because employers think that employees would have difficulties finding and keeping insurance if they get sick, dealing with insurance companies’ administrative issues, getting good prices for insurance, and picking good plan providers.
The survey also found that small employers were unaware of the state sponsored Health Insurance Plan of California (HIPC) that offers small businesses the chance to join together in their purchase of health care plans to get more value for their dollars as well as giving them a means of offering their employees a wider choice of health plans. The HIPC has been privatized under the name PacAdvantage.
The National Committee for Quality Assurance (NCQA) is a private, nonprofit organization committed to improving the quality of the nation''s health care by setting standards for the quality of care and service that health plans provide to their members. NCQA’s Health Plan Report Card provides an interactive tool designed to help individual consumers, employers, and federal and state governments find the right health plan. Health plans that meet these standards receive NCQA Accreditation that is nationally recognized as a seal of approval.
NCQA''s Health Plan Report Card answers questions about health plans such as:
- does this health plan provide good customer service?
- will you have access to the care you need?
- does the plan check doctors'' qualifications?
- if you get sick, which plan will take better care of you?
It evaluates clinical quality, member satisfaction and provides a comprehensive assessment of key systems and processes.
NCQA''s Health Plan Report Card has results on hundreds of managed care organizations that care for commercially insured individuals and Medicare and Medicaid beneficiaries. You can create a customized Report Card that shows results for the health plan(s) you want to know about. Try it!
You can also find the NCQA''s State of Managed Care Quality Report for 2000 on their website.