Mergers among insurers ignite concerns over private Medicare: 4 things to know

Approximately 97 percent of the markets of insurance companies offering private Medicare Advantage plans in 2012 were "highly concentrated," according to a report from the Commonwealth Fund.

The report claims "there is little competition anywhere in the nation" regarding private Medicare insurers. Recent mergers among insurers could harm these concentrated marketplaces even more.

Here are four things to know about private Medicare and how mergers put it at risk, according to The New York Times.

1. The report found insurer consolidation has led to a lack of competition in the private Medicare market. The lack of competition was worse in rural areas. In fact, only one county — Riverside, Calif. — qualified as a competitive market, according to the report. Meanwhile, in Kansas, Aetna and Humana have 90 percent of the Medicare Advantage market, for example.

2. A few top insurers that offer private Medicare Advantage have announced plans to merge. While UnitedHealth is still independent, Humana and Aetna announced their plan to merge this year.

3. The increased number of mergers has raised concerns over the lack of competition. Private insurance proponents believe private plans help consumers by reducing Medicare costs and improving the quality of coverage. However, the lack of competition due to mergers could benefit or harm consumers, depending on the type of market and whether policies are sold to individuals, large employers or Medicare beneficiaries.

4. The big insurers argue that consumers will have many choices despite the mergers. "The Medicare space is highly competitive," said Cynthia B. Michener, a spokeswoman for Aetna. An analysis by Avalere found the majority of Medicare beneficiaries could choose from at least five plans. However, the analysis didn't examine whether individuals had a choice of insurance company. The analysis was funded by Aetna, but Avalere claims complete editorial control.

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