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Monopolies are Taking Over. |
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Written by Kelly Woodford
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Wednesday, 05 August 2009 23:04 |
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According to AIS Health Business Daily, two recent studies have revealed that the Blues plan is a market leader. Because the Blues plan lacks competition, this health plan has been able to raise premiums. Many states are dominated by one or two leading health plans that have taken control of the market share in terms of enrollment.
According to the data, Hawaii has the highest share of the market with 78%. Other states dominated by two health plans with more than 50% of the total insured are Michigan, Minnesota, and North Dakota. Health Alliance Plan of Michigan and Blue Cross dominate Michigan with a combined market share of 54.98%. Blue Cross and Medica Health Plans dominate Minnesota with a combined market of 76.2%. North Dakota’s combined market share is 67.87% and is dominated by Humana Inc. and Blue Cross.
Kansas Insurance Commissioner, Sandy Praeger, points out that Blue plans are the largest plans in many states. In her state particularly, Blue Cross and Blue Shield is the only insurer that is willing to cover all markets in the state. In the past Anthem had tried to acquire Kansas Blue Plan, but Commissioner, Kathleen Sebelius , blocked the attempt to grow through acquisitions. If Anthem had been successful, premiums could have gone up to pay off their stockholders.
Wellpoint spokesman, Cheryl Leamn, says that there are many reasons why insurance coverage continues to rise. These costs include new medical technologies and the aging population. Due to the industry consolidation, the majority of heath care plans have no concerns over merging health plans. In situations of overlap, the mergers are exposed to government extensive investigations that sometimes last months.
HCAN and others say that the real comparison is with claim costs. Claims rose faster in three out of their four market systems. Oregon is one of the most competitive with eight other major health care plans in the market. While some states like Oregon have fair competition, many states, like Michigan, are still considered to have one or two insurance plans that serve as a monopoly.
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