The Utah State Insurance Department recently released its third annual 2003 Health Insurance Market Report. The purpose of this report is to provide an evaluation of Utah's commercial health insurance market. The report also includes health insurance trends since 1999.

The primary focus of the report is on comprehensive health insurance plans. These are health insurance plans that provide major medical health insurance coverage to approximately 35% of Utah residents. During 2002, there were 89 insurance companies providing this type of coverage. Of these 89 insurers, 12 sold 98% of it to Utah consumers.

Commercial health insurance plans are regulated by the Utah State Insurance Department. This means that a resident who is having problems with his or her agent or insurance company can contact the Insurance Department for help.The general contact number is 801-538-3800.

In reviewing the market trends from 1999 to 2002, four significant changes are apparent.

• First, the number of health insurers participating in the comprehensive health insurance market has decreased by 28%. This appears to be due to small insurers leaving the Utah market because they are unable to compete profitably.
• Second, comprehensive health insurance premiums per member per month have increased by 31.7%. This is primarily due to an increase in the cost of health care. For example health insurance losses, per member per month, increased by 20.8%.Utah's health care trends appear to following the national trends.
• Third, the number of Utah residents covered by comprehensive health insurance has decreased by 6.63%.  The available data suggests that this may be due to large employers moving from commercial health insurance to providing employee health benefits via self-funding arrangements.
• Fourth, over the past eight years the top health insurers in the market have experienced an average loss of .08% of their annual net income. This loss, in spite of significant increases in premium, is attributable primarily to rising medical costs, including a rapid increase in the costs of prescription drugs.

These market trends suggest that Utah's commercial health insurance market is struggling.Many health insurers are having a difficult time keeping up with the rising costs of products and services they insure. For Utah residents this has resulted in fewer insurers to choose from and higher health insurance costs.

Anyone wishing to view or obtain a copy of the 2003 Health Insurance Market Report can go to the Utah Insurance Department's website at http://www.insurance.utah.gov/2003HealthInsRpt.pdf.

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