Private health insurance plans in 1978 and 1979: a review of coverage, enrollment, and financial experience

Abstract

The private health insurance industry collected $55.9 billion in premiums in 1979 and returned $50.2 billion in benefits to its subscribers. Premiums rose 12.4 percent, slightly faster than in 1978 when premiums rose 11.4 percent, to $49.7 billion. Benefits rose 11.4 percent in 1979, down from the 12.6 rate in 1978. After operating expenses were deducted, the industry showed underwriting losses of $1.4 billion in 1979 and $1.5 billion in 1978. About 78 percent of the population was insured for hospital care, 76 percent for x-ray and laboratory examinations, and about 76 percent for surgical services in 1979. Smaller percentages had coverage for other types of care. An estimated 64 percent of the aged bought private hospital insurance, and about 43 percent bought surgical insurance, mostly to supplement Medicare benefits. An estimated 12 percent of persons under age 65 had no protection against the cost of hospital care either through private insurance or a public program such as Medicare or Medicaid.

Figure 1. 1979 Hospital Enrollment by Type of Insurer

Figure 2. 1979 Surgical Enrollment by Type of Insurer

Figure 3. 1979 Dental Enrollment by Type of Insurer

Figure 4. 1979 Prescribed Drugs Enrollment by Type of Insurer

Figure 5. Percentage of Health Insurance Business

Figure 6. Private Health Insurance Premiums and Benefits, 1965-1979

Figure 7. 1970 Benefit Distribution

Figure 8. 1975 Benefit Distribution

Figure 9. 1979 Benefit Distribution