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Mark Farrah Associates Confirms Health Insurance Enrollment in Self-Insured Companies Up Significantly
KENNEBUNK, Maine --(Business Wire)--
Mark Farrah Associates (MFA (News - Alert)), 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 partiipants' 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 www.markfarrah.com.
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™.
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