Regulated Medicare Advantage And Marketplace Individual Health Insurance Markets Rely On Insurer Competition [Market Concentration]

Two important individual health insurance markets—Medicare Advantage and the Marketplaces—are tightly regulated but rely on competition among insurers to supply and price health insurance products. Many local health insurance markets have little competition, which increases prices to consumers. Furthermore, both markets are highly subsidized in ways that can exacerbate the impact of market power—that is, the ability to set price above cost—on health insurance prices. Policy makers need to foster robust competition in both sectors and avoid designing subsidies that make the market-power problem worse.

Source: Health Affairs - September 5, 2017 Category: International Medicine & Public Health Authors: Frank, R. G., McGuire, T. G. Tags: Insurance Market Market Concentration Source Type: research