Study: Health insurance market becoming more concentrated

Seventy-three percent of US commercial health insurance markets are highly concentrated based on guidelines used by the Department of Justice and Federal Trade Commission to assess market competition, according to the latest annual report on health insurance competition by the American Medical Association. In 91% of the 384 metropolitan statistical areas studied, at least one insurer had a commercial market share of 30% or more, and in 46% of MSAs a single insurer’s share was at least 50%. Fifty-four percent of markets that were highly concentrated in 2014 became even more concentrated by 2020, the study found.

“These markets are

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Rising health insurance premium leaves buyers afternoon

With premiums going through the roof, people are anxious about health insurance burning a hole in their pockets.

Industry insiders and consumers businessline spoke to want the government to accelerate the setting up of a health regulator or reduce the GST rate from current 18 per cent to curb the surging costs of health insurance.

Top retail inflation

According to Srinath Sridharan, an insurance customer, the rise in health premiums exceeds the average retail inflation rate by 3-4x.

“The sector’s foundation seems to rest on a distrust of its customers, burdening policyholders with the onus of evidence and claims efforts.

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