The number of consumers using the Internet to shop for or purchase health insurance has increased dramatically, from more than 2 million in 2001 to nearly 10 million in 2002. The Internet holds great promise for ease and convenience, but are the online companies offering health insurance to individuals and small groups living up to this promise?

The California HealthCare Foundation’s most recent Trends and Analysis report on Insurance Markets, Purchasing Health Insurance Online, provides background on individual and small group health insurance purchaser practices; compares a sample of broker, health plan, and purchasing alliance Web sites; and highlights findings and recommendations for improvement.

"Sites provide a convenient way to shop, but have not yet achieved their full potential to streamline health insurance research and purchasing," said Marian Mulkey, M.P.H., M.P.P., CHCF’s program officer for health insurance markets and the uninsured.

• Health plan and broker sites should add links to quality information.
• Broker sites should improve individual and small group benefit information.
• Health plan and broker sites should improve and expand online applications.
• Health plan and broker sites should enhance privacy policies and broker sites should re-examine the information they collect.

  In a separate publication, CHCF provides tips for consumers shopping for health insurance in the individual (non-group), small group, and Medicare markets. Mulkey noted, "As more consumers turn to the Internet to shop for and purchase health insurance, they should look for sites that offer accurate benefit information, handle personal information appropriately, and support well-informed choice."

  A sample of the tips suggested by CHCF:
• Use online resources to help compare health plan, hospital, and medical group quality.
• Check out a Web site’s privacy policy before providing personal information.
• For ballpark costs and side-by-side comparisons of different products, visit health insurance broker sites.
• Use several Web sites to review options and confirm coverage information before making a decision.
• Beware: Your final costs may be higher than the quote you receive online.

  Included with the consumer tips, CHCF provides online addresses for specific Web sites that can provide more information and offers a guide to some of the best health plan and broker sites available.

  Both the consumer tips publication and the Purchasing Health Insurance Online report emerged from a study of health insurance Web sites commissioned by CHCF. Both publications, along with the complete study, are available for download through the link below.

  "If sites can quickly adapt to consumer needs and respond to consumer concerns about privacy and use of personal information, then they are likely to play a growing and significant role in health insurance shopping and sales transactions,” added Mulkey.

  Related Publications

  Purchasing Health Insurance Online: Full Report provides a comprehensive review of findings and opportunities resulting from an analysis of eight broker sites, six health plan sites, and two small group purchasing alliance sites.

  Buying Health Insurance Online: Tips for Consumers Members of the media are encouraged to use their Web sites to provide online links to the CHCF consumer tips information, or to direct readers to www.chcf.org.