Health insurance markets across the country are becoming increasingly concentrated, making them ripe for payers to exercise market power in a way that can negatively impact patients and healthcare providers, according to a new report.
The report, produced by the American Medical Association, found that in 43% of metropolitan areas in 2016, a single health insurer had at least a 50% share of the market. That was the case in 40% of metropolitan areas in 2014. Put another way, the commercial health insurance market became more concentrated from 2014-2016 in 27 states.
