INVOLUNTARY HEALTH PLAN SWITCHING - CASE-STUDY OF A CORPORATE HEALTH BENEFITS PROGRAM

This study examined the extent of health plan switching in one large c orporation due to changes in employment, compared it with the extent o f voluntary switching among continuously employed individuals, and eva luated the risk mix of health plan stayers, voluntary switchers, and i nvoluntary switchers. Of 14,791 workers enrolled in the firm's fee-for -service plan in 1987, only 5,320 remained in 1990. Of the 11,494 empl oyees enrolled in the large health maintenance organization (HMO) and the 7,677 enrolled in the small HMOs in 1987, only 5,299 and 3,026, re spectively, remained in their HMOs and insured by the firm in 1990. Th ese large enrollment losses were offset by large enrollment gains from new employees. Health plan leavers were at a lower risk of using medi cal services than were health plan stayers. The lowest expected annual expenditures were among newly hired health plan joiners.