AMA Wire

Wednesday, Nov. 23, 2011

This Week's News

Column explains how health insurer monopolies harm physicians and patients

In a guest column posted on physician blog KevinMD.com, AMA President Peter W. Carmel, MD, describes how highly concentrated commercial insurance markets have hurt physicians and patients. Dr. Carmel gives an overview of the findings available in the AMA's 2011 edition of Competition in Health Insurance: A Comprehensive Study of U.S. Markets, the most comprehensive analysis of its kind.

"It appears that insurer consolidation has resulted in health insurer monopoly power, leading to increased premiums instead of enhanced efficiency and lower premiums," Dr. Carmel writes. "The AMA study also points out that a dominant insurer could flex its monopolistic muscle to reduce payments to doctors and undermine the quality of care."

Dr. Carmel also highlights the study's finding that highly concentrated markets increase health insurers' profitability while patients' insurance benefits seem to have decreased. The AMA continues to call for greater antitrust enforcement.

Read more about Competition in Health Insurance: A Comprehensive Study of U.S. Markets, which is available for purchase through the AMA Bookstore. AMA members can access it for free; if you're not a member, join today.