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GAO-02-536R 1 (2002-03-25)

handle is hein.gao/gaobaalyd0001 and id is 1 raw text is: I Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 March 25, 2002 The Honorable Christopher Kit Bond Ranking Minority Member Committee on Small Business and Entrepreneurship United States Senate Subject: Private Health Insurance: Number and Market Share of Carriers in the Small Group Health Insurance Market Dear Senator Bond: As a follow-up to our recent report to you on the small group health insurance market,' you requested additional information on each state and the District of Columbia. Specifically, you asked us to identify-for each state-the number of carriers2 licensed in the small group market, the largest carriers, and their market share. To obtain this information, we sent an electronic survey to the office responsible for regulating insurance and/or health plans in all 50 states and the District of Columbia (hereafter referred to as a state). We followed up with nonresponding states by e-mail and by telephone and received responses from 48 states. However, not all 48 states had the information needed to answer all of the questions. For example, 37 states reported the largest carrier and 34 states provided market share data. Also, the responding states varied in how they defined the size of a small group. Most-33- defined a small group as 2 to 50 employees, 11 defined a small group as I to 50 employees, and 4 had some other definition. We did not verify the information provided by the states. We performed our work in February and March 2002 in accordance with generally accepted government auditing standards. 'U.S. General Accounting Office, Private Health Insurance: Small Employers Continue to Face Challenges in Providing Coverage, GAO-02-8 (Washington, D.C.: Oct. 31, 2001). 2A carrier is generally an entity (either an insurer or managed health care plan) that bears the risk for and administers a range of health benefit offerings. 3Arkansas defined a small group as 1 to 25 employees, Missouri as 3 to 25 employees, and New Hampshire as 1 to 100 employees. Hawaii does not separately define small groups for the purpose of health insurance. GAO-02-536R State Small Group Health Insurance Markets

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