Primary Market—The Working Uninsured
Over 26 million working Americans have no health insurance, according to a study completed in 2006 by the Kaiser Commission on Medicaid and the Uninsured. Seventy percent work full time and 19% are part-time workers.
Why are so many workers uninsured? Broadly speaking, American workers have no access to health insurance because they:
- Work for companies that do not offer health insurance.
- Are seasonal, part-time, or contract employees, who generally are not eligible for coverage under traditional major medical plans.
- Cannot afford to pay their part of the premium.
Many employers, especially those who own small businesses, simply cannot afford to offer traditional plan benefits to their workers. Between 2000 and 2006, the average national cost of health insurance almost tripled, from $4,242 for family coverage in 2000 to $11,480 for the same coverage in 2006.
Part-time workers make up a virtually untapped market of nearly 5 million people. They are usually uninsured but are often invisible to agents, brokers, and benefit consultants who traditionally focus on benefit plans for full-time employees.
The Underinsured
As the employer-paid portion of medical insurance continues to increase, small-business owners look for ways to cut their costs. One way is to increase deductibles, co-pays, and coinsurance.
By offering Markel Basic Health insurance along with a major medical plan, small-business owners can give their employees a choice of coverage. Many employees who cannot pay the premiums of the full plan will opt for the more affordable limited medical plan.