Can Individual Health Insurance Reduce the Number of Uninsured?
Approximately 46 million Americans lack health insurance. Many uninsured people have jobs but work for firms that do not offer insurance. Individual insurance offers a potential solution for this group. However, to date, consumer interest in such plans has been limited. Policymakers and analysts have expressed interest in expanding this market, arguing that it gives consumers a choice of products and could reduce the number of uninsured individuals. However, some experts warn of inherent weaknesses in the market, including rising premiums, limited access, and higher prices for consumers in poor health. Is individual insurance a promising avenue for insuring greater numbers of Americans? To shed light on this topic, a RAND team, led by health economist Susan Marquis, conducted a multiyear study of the individual insurance market in California. Because California’s trends in premiums, rates of uninsured, and rates of employer-sponsored coverage reflect those in the rest of the country, t
