What level of market competition exists in the current health insurance marketplace? Are administrative costs and underwriting margins in the individual and small group markets significantly higher than in the large group market? How does claim cost experience vary between the individual and small group markets?

In the past, these questions have been difficult to answer because insurance carrier financial experience was generally only reported on an aggregate basis rather than at the state level or for a specific segment of the commercial insurance market. Because of the introduction of a new financial exhibit that must be completed with each carrier’s year-end statutory filing, many of these questions can now be answered with greater clarity.

This paper uses data reported in the Supplemental Health Exhibit for calendar year 2010 to focus on key premium, claim cost, and administrative statistics within each insurance market and discusses observed differences among them.