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Should a Government Health Plan compete with Private Health Plans? A Rebuttal

Posted Mar 31 2009 11:19pm

Last month, I blogged about allowing a government-sponsored health plan to compete with private insurers.   Joe Paduda gives one argument in favor of a public health insurer that any economist would love: increased competition.  

“The reality today is that almost every market is already dominated by a very few health plans, so much so that in most markets, there really is very little market competition amongst health plans…In 96% of markets, at least one insurer has share higher than 30%; in almost two-thirds of the markets, at one insurer has share greater than 50%.”

Could a public health plan actually increase competition?

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