Why Insurers Love Obamacare
Posted at 11:55 a.m. on Jan. 28, 2014
Jeffrey Young provides a thorough analysis, with charts, to show which insurers are grabbing the market in each state. He finds that the level of competition among different plans in the marketplaces varies state to state.
“Historically, the health insurance market has offered consumers just one or a small handful of insurance companies from which to choose. Prior to the insurance exchanges opening, one or two companies in 45 states controlled more than half of the market for people who buy coverage on their own rather than get it from their employers, according to a report published by the American Medical Association in November.”
“Competition among insurance companies is a key factor in encouraging lower prices and offering more benefits choices to consumers. Insurers with few rivals, or none, can exercise their clout by charging higher monthly premiums. Likewise, firms that command huge shares of their states’ markets may discourage others from joining the exchanges in 2015 and later years, and drive out companies that fail to gain enough customers in the early going.”