AHIP: Private Payers Boost Insurance Coverage, State Economies
Private payers contribute to the local economy through taxes and job opportunities while creating insurance coverage for over 60 percent of the population in 15 states.
Source: AHIP
By - Private payers deliver health insurance coverage to hundreds of millions of Americans while providing millions of employment opportunities, according to AHIP’s Health Coverage: State-to-State 2021 biennial report.
“Health insurance providers are committed to ensuring that all Americans have affordable, high-quality coverage and equitable care,” Matt Eyles, president and CEO of AHIP, said in a press release. “As job creators, we are also committed to empowering the communities we serve, particularly those that have been historically underserved or underrepresented.”
Utah had the largest share of privately insured people, with 70 percent of residents covered under a private insurance plan.
In North Dakota, 65 percent of people are privately insured. Similarly, private health plans insure 64 percent of Nebraskans and 63 percent of Minnesotans.
In New Hampshire and Wisconsin, 62 percent of citizens are covered by private plans.
Private health insurance was equally common in Massachusetts, New Jersey, and Washington, DC, with 61 percent of people enrolled in a private plan in the federal district and states.
Colorado, Illinois, Kansas, South Dakota, Maryland, and Rhode Island each have 6 in 10 people covered by a private plan.
The state with the smallest share of privately insured members was New Mexico, with 41 percent of people covered by a private plan.
In addition to providing coverage to most Americans in those fifteen states, the private health insurance industry also supports statewide economies, AHIP said.
Eyles noted that private health insurance providers add significant value to the American economy through millions of employment opportunities.
Utah, the state with the greatest share of privately insured individuals, contributes more than $155 million in state premium taxes. Additionally, the Utah private payer industry employs 3,156 people statewide.
Traveling down the list of the states with the greatest percent of privately insured people, the report found that the North Dakotan health insurance industry pays over $68 million in state premium taxes. Across the state, the industry employs 2,398 people.
The Nebraskan health payer industry contributes more than $60 million in state premium taxes and over 6,000 Nebraskans work for a health plan, according to the report’s findings.
Minnesota’s health insurance industry pays over $524 million in state premium taxes and more than 30,000 Minnesotans work in the health payer industry.
The New Hampshire health insurance industry contributes more than $114 million in state premium taxes and employs 2,473 individuals within the state.
The Wisconsin payer industry contributes upwards of $216 million in state premium taxes while providing employment to more than 18,000 people.
In Massachusetts, the health insurance industry pays more than $445 million to the state in premium taxes and employs 16,239 health plan workers.
New Jersey health insurance companies contribute $519 million in state premium taxes in addition to employing 8,847 individuals.
Washington, DC’s health plans collectively pay $121 million in premium tax, and 2,124 people work in the private health insurance business.
In Colorado, the industry contributes $314 million in state premium taxes while also providing jobs to 11,003 people in the state.
Illinois health plans pay over $423 million in state premium taxes and employ upwards of 22,000 people.
Kansas healthcare plans contribute $405 million in premium taxes and provide employment to 3,714 individuals.
South Dakota’s health insurance companies pay over $90 million in state premium taxes and employ 1,225 people.
Maryland’s health plans contribute more than $556 million in state premium taxes. Almost 12,000 people work in the state’s health plan industry.
In Rhode Island, private insurers pay $117 million in state premium taxes. Over 1,700 people who live in Rhode Island work in the health insurance industry.
“Health insurance providers support nearly two million jobs for Americans, powering local economies,” Eyles said. “We are proud to be an essential part of the economic engine that drives America and the communities we serve.”
