The Pacific Business Group on Health is ending an influential group health experiment.
The PBGH, San Francisco, is shutting down the Pacific Health Advantage health coverage purchasing coalition at the end of the year because health insurers are no longer willing to participate.
The PBGH continues to run a $5 billion health coverage purchasing coalition for large employers, but it has stopped selling new PacAdvantage coverage, and it is working to help PacAdvantage small group customers, which all have 2 to 50 employees, find new sources of health coverage.
The California Managed Risk Medical Insurance Board formed the forerunner to PacAdvantage, the Health Insurance Plan of California, in 1992, in an effort to hold down health coverage costs for small groups and help small employers offer employees a choice of health plan designs.
The PBGH took control of the program from MRMIB in 1998.
The PacAdvantage program has helped shape the California small group health coverage market.