New analyses support blocking pending insurance mergers

Two analyses released today demonstrate further that the proposed Anthem-Cigna and Aetna-Humana health insurance mergers would exceed federal antitrust guidelines designed to preserve competition and jeopardize patient access to affordable coverage and care. The analyses are based on data from the 15th edition ofCompetition in Insurance: A Comprehensive Study of U.S. Markets, published today by the AMA, which continues to find the majority of commercial health insurance markets in the United States are highly concentrated. High market concentration can lead to enhanced market power by health insurers on physicians and patients, wherein payments to physicians are lower than those resulting in a competitive market and premiums charged to patients are higher with no added benefits.The most complete picture of competition in health insurance Using 2014 data from captured from commercial enrollment in fully and self-insured plans,Competition in Insurance presents the two largest insurers ’ commercial market shares and the market concentrations for 388 metropolitan statistical areas (MSAs), the 50 states and the District of Columbia.“This is the most complete picture available of competition in health insurance markets,” the report said. In terms of market concentration, it shows:Seventy-one percent of the combined health maintenance organization (HMO), preferred provider organization (PPO), point-of-service (POS) and health exchange (EXCH) markets are highly concentrated...
Source: AMA Wire - Category: Journals (General) Authors: Source Type: news