According to our recent broker survey of over 1,000 brokers, there is strong evidence of employers dropping health insurance across the country. We were able to cut our data into a state-by-state breakdown showing where brokers believe they are losing the most business to the individual market.
Percent of business lost in last year to individual market (Broker self-reported data)
The state-by-state variation can be attributed to a variety of factors including:
- Individual market rates – premiums vary widely from county-to-county, and from state to state
- Worker income demographics – employers in states with lower-wage workers may be more likely to migrate to the individual market, since their employees are likely eligible for subsidies
- Medicaid expansion – some states chose not to expand Medicaid to all citizens who are below 133% of FPL. Employers in these states may be more reluctant to drop coverage
- Industry factors – some industries are more likely to stick with employer sponsored insurance, either due to historical factors, or because of a perceived need to offer similar benefits to their competitors. Other industries tend to be more willing to adjust their benefits structure to fit with the changing regulatory environment.
Clearly, the states with the highest estimated rates of employers dropping health insurance appear to be Minnesota, Wisconsin, Arkansas, Florida, and New Mexico. States with the lowest rates of employers dropping health insurance include South Carolina, New York, and Massachusetts. We did not have sufficient data to make an estimate in several states, including Idaho, Montana, Wyoming, North Dakota, South Dakota, Kentucky, West Virginia, Mississippi, Vermont, and Maine.
What do you think is driving variation in broker loss rates? Feel free to share your thoughts with us. Also, you can view the full results of our broker survey to learn more.