AMA: Most commercial, Medicare Advantage markets lack competition

Most commercial and Medicare Advantage markets are highly concentrated, with one payer controlling a large share of the market in local areas, a new report from the American Medical Association found. 

The 2022 "Competition in Health Insurance" report, published Nov. 1, found that 34 percent of metropolitan areas have one payer with more than a 50 percent share of the Medicare Advantage market. 

Commercial markets were also concentrated, with 48 percent of metropolitan areas having one payer controlling the majority of the market. 

In a news release, AMA President Jack Resneck Jr., MD, said high levels of concentration can reduce competitive constraints on payers. 

"Unchecked market power among insurers is a formula for higher premiums, lower coverage, and inadequate levels of patient care, concerns of great relevance to Medicare Advantage," Dr. Resneck said.

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