For-profit insurers are more likely than not-for-profit insurers to exercise market power when they have it, according to a new study by Harvard Business School professor Leemore Dafney. The author looked at Blue Cross and Blue Shield affiliates that converted to for-profit status in 11 states spanning 28 geographic markets, and found that both the BCBS affiliate and its rivals increased premiums in markets where the converting affiliate had substantial market share. Medicaid enrollment rates also increased in these markets. “Future research on the impact of ownership form on dimensions beyond price – especially those related to quality, innovation and risk selection – is essential to obtaining a comprehensive perspective of the impact of for-profit ownership on insurer conduct,” the study notes.
 

Related News Articles

Headline
he House of Representatives last night voted 234-183 to pass legislation (H.R. 987) that combines several AHA-supported bills to help lower prescription drug…
Headline
The Centers for Medicare…
Blog
Long-standing players in the health care market, along with a growing number of new market entrants – including tech behemoths and aggressive startups – have…
Headline
Atrium Health (formerly Carolinas HealthCare System) today agreed to settle, without financial penalty or admission of wrongdoing, a 2016 Department of Justice…
Headline
The Department of Justice’s Antitrust Division today announced a settlement that would allow CVS Health and Aetna to proceed with their proposed merger if…
Headline
The federal government violated a statutory obligation created by Congress in the Affordable Care Act when it failed to provide Montana Health, an issuer of…