AP: Competition lacking among private health insurers

Competition lacking among private health insurers

By RICARDO ALONSO-ZALDIVAR, Associated Press Writer Ricardo Alonso-zaldivar, Associated Press Writer – 25 mins ago

WASHINGTON – One of the most widely accepted arguments against a government medical plan for the middle class is that it would quash competition — just what private insurers seem to be doing themselves in many parts of the U.S.

Several studies show that in lots of places, one or two companies dominate the market. Critics say monopolistic conditions drive up premiums paid by employers and individuals.

For Democrats, the answer is a public plan that would compete with private insurers. Republicans see that as a government power grab. President Barack Obama looks to be trapped in the middle of an argument that could sink his effort to overhaul the health care system.

Even lawmakers opposed to a government plan have problems with the growing clout of the big private companies.

"There is a serious problem with the lack of competition among insurers," said Republican Sen. Olympia Snowe of Maine, one of the highest-cost states. "The impact on the consumer is significant."

Wellpoint Inc. accounted for 71 percent of the Maine market, while runner-up Aetna had a 12 percent share, according to a 2008 report by the American Medical Association.

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http://news.yahoo.com/s/ap/20090822/ap_on_go_pr_wh/us_health_care_insurance_competition

It is already posted. Guess it came out earlier today.

not health insurance.

Casualty insurers used to be considered enormous if they had 2-3% of the market, but health insurers have always had more than that. I'd have to look into it to be sure, but I suspect a lot of it has to do with Blue Cross/Blue Shield turning into for-profit entities and being bought up by larger companies.

product you don't have price competition.

There are also backroom deals between these few companies to make it even harder for the consumer...