AMA’s study, titled “Competition in Health Insurance: A Comprehensive Study of U.S. Markets,” comprises commercial enrollment data from 2016 in the fully and self-insured markets as well as the public health exchange. In roughly two years, the percentage of markets with one insurer dominating at least a 50 percent share of the market grew 8 percent.
Competition among payers declines when insurers sport high market concentration. This can lead to premiums rising above competitive levels, the AMA said. For 69 percent of metropolitan areas, a significant absence of payer competition was present.
Of major commercial payers, Indianapolis-based Anthem held the largest geographic footprint in the U.S., representing the insurer with the highest market share in 82 of 389 metropolitan areas. Chicago-based Health Care Service Corp. was second, and Minnetonka, Minn.-based UnitedHealth Group was third.
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