Community rating and sustainable individual health insurance markets in New Jersey

TY - JOUR

T1 - Community rating and sustainable individual health insurance markets in New Jersey

AU - Monheit, Alan C.

AU - Cantor, Joel C.

AU - Koller, Margaret

AU - Fox, Kimberley S.

PY - 2004/7

Y1 - 2004/7

N2 - The New Jersey Individual Health Coverage Program (IHCP) was implemented in 1993; key provisions included pure community rating and guaranteed issue/renewal of coverage. Despite positive early evaluations, the IHCP appears to be heading for collapse. Using unique administrative and survey data, we examined trends in IHCP enrollment and premiums. We found the stability of the IHCP to be fragile in light of improving opportunities for job-related health insurance. We also found that it is retaining high-risk enrollees. Institutional realities and the difficulty of identifying a control group preclude attributing causality to the plan's pure community rating and open enrollment provisions.

AB - The New Jersey Individual Health Coverage Program (IHCP) was implemented in 1993; key provisions included pure community rating and guaranteed issue/renewal of coverage. Despite positive early evaluations, the IHCP appears to be heading for collapse. Using unique administrative and survey data, we examined trends in IHCP enrollment and premiums. We found the stability of the IHCP to be fragile in light of improving opportunities for job-related health insurance. We also found that it is retaining high-risk enrollees. Institutional realities and the difficulty of identifying a control group preclude attributing causality to the plan's pure community rating and open enrollment provisions.

UR - http://www.scopus.com/inward/record.url?scp=3242663580&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=3242663580&partnerID=8YFLogxK

U2 - https://doi.org/10.1377/hlthaff.23.4.167

DO - https://doi.org/10.1377/hlthaff.23.4.167

M3 - Review article

C2 - 15318577

SN - 0278-2715

VL - 23

SP - 167

EP - 175

JO - Health Affairs

JF - Health Affairs

IS - 4

ER -