The rural implications of geographic rating of health insurance premiums

The rural implications of geographic rating of health insurance premiums

Collection:
Health Policy and Services Research
Contributor(s):
Coburn, Andrew
Ziller, Erika.
Croll, Zach.
Kilbreth, Elizabeth.
Robert Wood Johnson Foundation.
State Health Access Data Assistance Center, University of Minnesota. State Health Access Reform Evaluation.
Publication:
[Minneapolis, Minn.] : State Health Access Reform Evaluation, [2012]
Language(s):
English
Format:
Text
Subject(s):
Eligibility Determination -- economics
Eligibility Determination -- legislation & jurisprudence
Fees and Charges -- legislation & jurisprudence
Insurance Pools -- economics
Insurance Pools -- legislation & jurisprudence
Insurance, Health -- economics
Insurance, Health -- legislation & jurisprudence
Rate Setting and Review -- legislation & jurisprudence
Rate Setting and Review -- methods
Rural Population
United States
United States.
Genre(s):
Technical Report
Abstract:
This brief examines how and to what extent states allow health plans to vary premiums by geographic rating area and, using insurance data from selected states, assesses the direction and magnitude of variations in rural and urban geographic rating factors. We conclude with a discussion of strategies that federal and state policymakers might use to help ensure that premium variations based on geography are justified. Key Points. There is no clear pattern of geographic rating factors favoring rural or urban areas. This lack of a clear pattern suggests that health plans may use geographic rating for business purposes other than adjusting for underlying cost/price differences. Geographic rating could reduce insurance risk pooling and be used as a proxy for experience rating. To limit the effect of market segmentation resulting from geographic rating, rate bands could be imposed on area rating factors.
Copyright:
Reproduced with permission of the copyright holder. Further use of the material is subject to CC BY-NC-DC license. (More information)
NLM Unique ID:
101586612 (See catalog record)
Permanent Link:
http://resource.nlm.nih.gov/101586612