Aug 10, 2018
173 Views

The importance of competition in ACA marketplaces

Written by


Competition matters for markets…even health care markets. A paper by Van Parys (2018) relies on a database of plan premium and market characteristics among states with federally-facilitated health insurance exchange Marketplaces.  In this analysis, she finds that:

In 2018, Marketplace premiums were 50 percent ($180) higher, on average, in rating areas with monopolist insurers, compared to those with more than two insurers. This was driven by large premium increases for the monopolist insurers’ lowest-cost plans.

Medicaid expansion states and states with a metropolitan area had relatively lower rates, but states with a duopoly (or especially a monopoly) had they highest increase in premiums.

Source:

  • Van Parys, Jessica. ACA Marketplace Premiums Grew More Rapidly In Areas With Monopoly Insurers Than In Areas With More Competition. Health Affairs. 37, NO. 8 (2018): 1243–1251.



Source link

Leave a Comment

Your email address will not be published. Required fields are marked *