What question did this study set out to answer?

To examine the relationship between the profitability cycle of private health insurance carriers and the cyclical nature of premium rate increases in group health coverage.

January 1, 1991Health Affairs

Tracing the Cycle of Health Insurance

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To examine the relationship between the profitability cycle of private health insurance carriers and the cyclical nature of premium rate increases in group health coverage.
Evaluated historical financial performance and underwriting data across commercial health insurers and nonprofit Blue Cross and Blue Shield plans over several decades.
Analyzed trends in employer health benefit cost changes using survey data from KPMG Peat Marwick between 1990 and 1991.
Private group health insurers reliably demonstrate a distinct underwriting cycle characterized by three consecutive years of underwriting gains followed by three consecutive years of underwriting losses.
The cyclical pattern applies across both commercial insurance carriers and nonprofit Blue Cross and Blue Shield plans.
Health benefit costs increased by 11.5% between 1990 and 1991, marking the lowest rate of increase observed over a three-year window within the underwriting cycle.

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Implication

Financial analysis demonstrates cyclical profitability shifts in private health insurers, suggesting predictable multiyear swings in group health insurance premiums.

Cite This Study

Gabel et al. (1991) studied this question.

synapsesocial.com/papers/6a886a640562fa470f4a75ce https://doi.org/10.1377/hlthaff.10.4.48

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Implication

Financial analysis demonstrates cyclical profitability shifts in private health insurers, suggesting predictable multiyear swings in group health insurance premiums.

Tracing the Cycle of Health Insurance

Key Points

Discussion

Implication

Cite This Study

Tracing the Cycle of Health Insurance

Key Points

Discussion

Implication

Cite This Study

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