In a health insurance environment that is in a state of flux with health coverage becoming tougher to get, particularly coverage of hearing care and hearing aids, the American Medical Association raised some important points around the issue of changes that are being driven by insurance mergers.

According to AMA President Steven J. Stack, MD, the association believes patients are better served in a health care system that promotes competition and choice. “We have long cautioned about the negative consequences of large health insurers pursuing merger strategies to assume dominant positions in local markets,” says Stack. “Recently proposed mergers threaten to increase health insurer concentration, reduce competition, and decrease choice. The AMA’s own study shows that there has been a serious decline in competition among health insurers, with nearly 3 out of 4 metropolitan areas rated as ‘highly concentrated’ according to federal guidelines used to assess market competition.”

“The lack of a competitive health insurance market allows the few remaining companies to exploit their market power, dictate premium increases and pursue corporate policies that are contrary to patient interests,” said Stack. “Health insurers have been unable to demonstrate that mergers create efficiency and lower health insurance premiums. An AMA study of the 2008 merger involving UnitedHealth Group and Sierra Health Services found that premiums increased after the merger by almost 14% relative to a control group.”

“Given the troubling trends in the health insurance market, the AMA believes federal and state regulators must take a hard look at proposed health insurer mergers. Antitrust laws that prohibit harmful mergers must be enforced…,” read a statement from the AMA.

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