A new report by the American Medical Association has some interesting information about what’s available throughout the nation for health insurance. Michigan health insurance has the 4th least competitive market in the country which means consumers have fewer choices for health insurance.
The report used numbers from 2009 enrollment in health insurance organizations and preferred provider organizations from 368 areas and 48 states. Alabama, Alaska and Delaware had the top three worst health insurance markets in the nation but this does not make Michigan’s situation any better. The non-profit Blue Cross Blue Shield of Michigan currently controls about 71% of the state’s commercial health insurance markets and this creates less opportunity for healthy competition.
BCBSMI controls an astonishing 85% of the market in the Jackson area which marks the least competitive area in the state. Healthy competition is encouraged because it typically keeps prices low as insurers compete for business. If a company has no one to compete with, then they alone set the prices and they can get sky high. Interestingly, a September 2009 report from the White House found Michigan’s employer-sponsored health insurance coverage for families had the lowest rate increases in the US over the past decade.
While these statistics don’t seem to mesh, one thing remains true. Michigan residents feel that health insurance is too high and they don’t have the options necessary for healthy competition. The article “Study: Michigan Health Insurance Options Few” by Melissa Burden on DetNews.com says the report is intended to help regulators and lawmakers identify areas that may need some extra attention when it comes to quality health insurance. Too few insurance companies can ultimately be detrimental to consumers, doctors, and employers everywhere.
A new report by the American Medical Association has some interesting information about what’s available throughout the nation for health insurance. Michigan health insurance has the 4th least competitive market in the country which means consumers have fewer choices for health insurance.
The report used numbers from 2009 enrollment in health insurance organizations and preferred provider organizations from 368 areas and 48 states. Alabama, Alaska and Delaware had the top three worst health insurance markets in the nation but this does not make Michigan’s situation any better. The non-profit Blue Cross Blue Shield of Michigan currently controls about 71% of the state’s commercial health insurance markets and this creates less opportunity for healthy competition.
BCBSMI controls an astonishing 85% of the market in the Jackson area which marks the least competitive area in the state. Healthy competition is encouraged because it typically keeps prices low as insurers compete for business. If a company has no one to compete with, then they alone set the prices and they can get sky high. Interestingly, a September 2009 report from the White House found Michigan’s employer-sponsored health insurance coverage for families had the lowest rate increases in the US over the past decade.
While these statistics don’t seem to mesh, one thing remains true. Michigan residents feel that health insurance is too high and they don’t have the options necessary for healthy competition. The article “Study: Michigan Health Insurance Options Few” by Melissa Burden on DetNews.com says the report is intended to help regulators and lawmakers identify areas that may need some extra attention when it comes to quality health insurance. Too few insurance companies can ultimately be detrimental to consumers, doctors, and employers everywhere.
Written by Sam Tabes
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