How does your insurance market stack up?
CHICAGO – The health insurance market is rapidly consolidating, according to a new report by the American Medical Association (AMA).
The report, released Nov. 28, examines insurer competition for point-of-service plans (POS), health maintenance organizations (HMO) and preferred provider organizations (PPO).
“The broad scope of the new AMA analysis provides the most complete picture of the consolidation trend in health insurance markets,” stated Jeremy Lazarus, AMA president, in a release. “The new data demonstrate that most areas of the country have a single health insurer with an anticompetitive share of the HMO, PPO or POS market.”
Among the findings:
• The top five states with the least competitive HMO markets are: 1. Rhode Island, 2. Alabama, 3. Arkansas, 4. Wyoming 5. Utah.
• The top five states with the least competitive PPO markets are: 1. Alabama, 2. Michigan, 3. Hawaii, 4. South Carolina, 5. Delaware.
• The top five states with the least competitive POS markets are: 1. North Dakota, 2. Rhode Island, 3. Oklahoma, 4. Alabama, 5. Wisconsin.
The dangers of this lack of competition include increased premiums and watered-down benefits, according to the study.
To order a copy of the study, visit the AMA website.