Florida Health Insurance Advisory Board Adopts 2011 Florida Health Insurance Market Report

Dec 21, 2011


With little discussion, the Florida Office of Insurance Regulation’s (“OIR”) Florida Health Insurance Advisory Board (“FHIAB”) adopted its 2012 budget along with the 2011 Florida Health Insurance Market Report during a brief meeting yesterday, December 20, 2011.  To view the Report, click here.

Tom Zutell, OIR Deputy Director of Communications, summarized the highlights of the Report as follows:

  • Enrollments in Florida’s commercial health insurance markets steadily declined over the last five years from 4.3 percent in 2009 to 3.7 million covered lives by the end of 2010.
  • Florida’s Guaranty Issue Enrollment increased nearly 30 percent from 2009 to 2010.
  • Florida’s individual underwritten enrollment remained fairly flat over the last five years.
  • Health insurance portability and accountability act policies represent a very small portion of the overall base of covered lives in the individual market. There was a 13 percent increase in medically underwritten individual coverage in 2010 and a 30 percent increase in Health Insurance Portability and Accountability Act (“HIPAA”) eligible coverage.
  • Commercial premiums in the large group market showed a 7.1 percent increase in enrollment in 2010 but overall premium collection decreased by 23 percent over the same period.
  • Enrollment declined 19 percent in the small group market and premiums collected in this market declined 13 percent in 2010.
  • Enrollment increased 1.3 percent in the individual market in 2009 and premium collection rose 5.3 percent.
  • State large groups experienced a loss ratio of 84.1 percent in 2010, down from an 89.2 percent loss ratio in 2009.
  • Small group loss ratios dropped from 81.9 percent in 2009 to 71.9 percent in 2010.
  • Individual market loss ratios remain relatively stable on the medically underwritten side at 59.7 percent in 2010, down from 62.7 percent in 2009.
  • In-state HIPAA Guaranteed Issue policies experienced an 88.9 percent loss ratio for 2010, down from 97.8 percent in 2009.

Mr. Zutell concluded that the above data indicates that the market in 2010 does not significantly differ from how the market finished in 2009, considering the gradual decline in market-wide direct written premiums since peaking in 2007.  He said enrollment has steadily increased since the end of 2009 with the exception of in-state small groups dropping from 1,045,923 in 2009 to 86,723 in 2010. Total out-of- state individual policies dropped from 182,669 in 2009 to 177,000 in 2010.

In other business, the FHIAB adopted its 2012 budget.  The total balance of the budget is $142,457.43, it was noted.

Next, the FHIAB also voted to appoint Michelle Lovern as acting executive director in the wake of former executive director Tori Grissom’s departure from the position.  Ms. Lovern is currently the President and CEO of Innovative Edge Consulting, Inc. and has also served as Vice President of the American Guaranty Fund Group.  Prior to her private sector experience, she served for 10 years in various OIR management roles, most recently as Assistant Insurance Commissioner.

The FHIAB also heard a brief Legislative update. 

Michelle Robleto, FHIAB Chair and OIR Deputy Commissioner for Life and Health Insurance, noted that Florida’s request to modify implementation of the medical loss ratio standard in the individual market was denied by the U.S. Department of Health and Human Services on December 15, 2011.

In regard to state legislation, the FHIAB currently does not have an agenda, she said.

With no further business before the FHIAB, the meeting was adjourned.



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