HD25 - Health Insurance for Unemployed Persons in the Commonwealth
Executive Summary: The State Corporation Commission's Bureau of Insurance was requested by the General Assembly to study the need for health insurance coverage by those in Virginia who are unemployed. The request was made in House Joint Resolution No. 235. The Bureau of Insurance was also requested to review alternative methods for offering insurance and the feasibility of implementing a program using the methods reviewed. Information from the Commission's 1986 study of the degree of health coverage of the Virginia population was used in this study. The Virginia Employment Commission supplied statistical information about unemployed Virginians. National research in this subject area was also reviewed. Independent research has confirmed the relationship between being employed and having health coverage. Even though the lack of health coverage for the unemployed is acknowledged, there are only a few programs in existence in the United States that are specifically designed to provide health coverage to the unemployed. Information about these programs is included in this report. The State Corporation Commission's Bureau of Insurance concludes that there are a substantial number of people that would benefit from a state program offering health care services or health care insurance to the unemployed. The State Corporation Commission believes that a number of viable alternatives exist for providing this service to the unemployed, but that these alternatives would involve considerable expense. Health insurance is not always available to those who are employed, and the creation of this type of program could influence some individuals to become or remain unemployed. A deterrent to this type of action should be included in any program that is designed, if at all possible. A specific recommendation by the State Corporation Commission was not requested by the General Assembly. The areas affected by this type of program go far beyond the areas under the jurisdiction of the State Corporation Commission. The decisions that are to be made are public policy matters that do not necessarily involve insurers or their actions. The State Corporation Commission suggests that if a decision is made to implement a program for the unemployed, a pilot program should be developed and tested before a state-wide program is initiated. The pilot could be tested in the area or areas of the state where the unemployment rate is the highest. The pilot could also be designed to allow dual testing of the two alternatives that are considered most feasible. After the results of the pilots are studied and compared, the General Assembly could determine whether the program should be expanded, eliminated, or otherwise revised. |
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