Individual and small-group health plan members are “considerably less satisfied” with their health plan experience than health plan members who work for larger groups, according to an annual study.

Plan members working for small employers (50 or fewer workers) averaged a rating of 692 for their health plan experience on a 1,000 scale. By comparison, large employers (501-5,000 employees) whose employees were members of health plans averaged a 717 satisfaction level and jumbo group members (those with more than 5,000 workers) reported a 725 satisfaction level, according to the annual J.D. Powers and Associates National Health Insurance Plan Study.

Health plans should take note of the results, according to one of the researchers, as individual health plan membership continues to increase.

“As unemployment rates rise across the nation, more members are moving to individual health plans from employer-sponsored plans,” said Jim Dougherty, executive director of the healthcare practice at J.D. Power and Associates. “By more effectively managing the member experience for this growing segment of members, health plans could reap considerable financial benefits through increased retention and recommendations, and prepare themselves for the anticipated healthcare reform measures facing the industry, which are likely to drive additional enrollment among previously uncovered individuals and small employers.”

The study, in its third year, measures member satisfaction among 131 health plans in 17 regions throughout the United States by examining seven key factors: coverage and benefits; provider choice; information and communication; claims processing; statements; customer service; and approval processes.

Health plan members working for larger organizations are also more likely to re-enroll and recommend their plan to others, compared with members working for small employers.
Satisfaction among individual buyers of health insurance – 9% of the overall health plan membership – reported an average of 694 points, making it similar to the small-group plan members.

Individual purchasers are less likely to re-enroll, recommend and purchase other products is lower compared with members working for larger organizations.