Mark Farrah Associates Confirms Health Insurance Enrollment in Self-Insured Companies Up Significantly

Mark Farrah Associates Confirms Health Insurance Enrollment in Self-Insured Companies Up Significantly

<0> Mark Farrah AssociatesDebra Donahue, 207-985-8484 </0>

Mark Farrah Associates (MFA), a leading provider of market data and intelligence solutions, found nationwide more than 97 million people are covered by administrative services only (ASO) agreements with health insurance companies as of June 2012, compared to 84 million who are covered by commercial fully-insured (risk) arrangements. ASO enrollment increased nearly 5% from June 2011 to June 2012. Enrollment in commercial fully-insured products declined 0.4% during the same time frame. Health care reform, the economy and ASO options becoming more readily available for small to mid-size employers are driving much of the membership growth for administrative services products. However, defined contribution health plans may impact the overall outlook for Third Party Administrator (TPA) and ASO business in general.

Employers, or other sponsors of health insurance, have several options for financing their employees’ or participants’ health benefit plans – fully-insure, self-insure or hybrid options. If the company chooses to self-insure they usually enlist a TPA to manage this business for them. Health insurance carriers and their subsidiaries provide most of the administrative services for enrollment covered under TPA agreements for health benefits. MFA expects that ASO business will continue to rise through 2013. This may change in 2014, if a large number of employers decide to pursue defined contribution health plan options and/or if reinsurance and stop-loss coverage costs rise, or state and local government regulations change regarding self-insured business.

In the latest Healthcare Business Strategy report, MFA presents key findings from Mark Farrah Associates’ review of third party administrators, and in particular the administrative services only business for health insurance companies. Trends impacting the growth in this business line are also discussed. To read the full text of “Health Insurance Enrollment in Self-Insured Companies Up Significantly," visit the Analysis Briefs library on MFA's website .

About Mark Farrah Associates (MFA)

MFA is a leading data aggregator and publisher providing health plan market data and analysis tools for the healthcare industry. Committed to simplifying analysis of health insurance business, our products include Health Coverage Portal™, County Health Coverage™, Health Insurer Insights™, Medicare Business Online™, Medicare Benefits Analyzer™ and Health Plans USA™.