Question

Health insurance mergers have the potential to create a monopoly on the market, many stakeholders have argued.

The potential for a monopoly on the market means industry groups and politicians have raised antitrust concerns, asserting that there would be much less competition between national payers as well as a reduction in competition from small-to-medium-sized health insurance companies. Do you think, that eventually it would harm other payers attempting to compete in the market?

Answer 1

Health insurance mergers have the potential to create a monopoly on the market, it would harm other payers attempting to compete due to market capture. This will lead to less competition in the market allowing the top national healthcare payers to increase their premium prices, a direct negative impact on consumer interests.

According to studies by the Harvard Business Review and mergers of this kind which lead to monopoly rarely bring lower premium prices for the end consumer. According to the study conducted by the National Association of Insurance Commissioners (NAIC mergers would bring significant payer concentration in many states such as Georgia, Connecticut, and Colorado, allowing payers to raise their prices without allowing sufficient choice for consumers.