Comparing states, no correlation between premiums and dominant carriers

FOR IMMEDIATE RELEASE

June 24th, 2015

Comparing states, no correlation between premiums and dominant carriers
Increased competition does not equal lower premiums
Novi, MI: The Economic Alliance for Michigan (EAM) conducted a 50 state analysis of health insurance carrier market share and its effect on employer-sponsored health insurance premiums. No correlation was found to suggest that dominance in the marketplace by a single carrier has a specific outcome on premiums. Also, more competition among health insurance companies does not contribute to lower benefit premiums.
“Overall, it appears states with dominant health insurance providers do not have an effect on how high or low employer-sponsored health benefits cost,” said Bret Jackson, president of EAM. “Purchasers cannot rely on dominant carriers to hold premiums in check. We must address the fundamentals of healthcare cost in order to drive affordability.”
The findings show:
• Four of the top 10 states with the highest employer-sponsored health care “single” premiums and 4 of the top 10 with the lowest have a dominant insurance provider with a market share of 50 percent or more.
• Nine of the top 25 states with the highest employer-sponsored health care “single” premiums and 9 of the top 25 with the lowest have a dominant insurance provider with a market share of 50 percent or more.
• Four of the top 10 states with the highest employer-sponsored health care “family” premiums and 5 of the top 10 with the lowest have a dominant insurance provider with a market share of 50 percent or more.
• Eight of the top 25 states with the highest employer-sponsored health care “family” premiums and 9 of the top 25 with the lowest have a dominant insurance provider with a market share of 50 percent or more.
• Of the 25 states with the lowest dollar employer-sponsored health care “single” premiums, only 32% were above the national average of estimated total number of health insurance providers/companies. Twenty-one is the national state average for number of health insurance providers/companies.
• Of the 25 states with the lowest employer-sponsored health care “family” premiums, only 28% were above the national average of estimated total number of health insurance providers/companies. Twenty-one is the national state average for number of health insurance providers/companies.

For data, graphs, charts and sources go to https://eamonline.org/research/no-correlation-between-dominant-carriers-premiums/.

# # #

Contact

Stacy Leick
EAM Communications Director
Office: 248.596.1006
Email: stacyleick@eamonline.org

<span>%d</span> bloggers like this: