AMA study: Insurance mergers reducing competition in Ohio, premiums likely to climb

A new study released Tuesday finds that the Ohio’s health insurance industry experienced one of the nation's biggest drops in competition between 2010 and 2013 as insurers consolidate (Source: “Study: Ohio's health insurance industry is shrinking; prices bound to rise,” Cleveland Plain Dealer, Sept. 8, 2015). 

The decrease in competition resulting from a growing number of insurance mergers could lead to a sharp increase in premiums, according to the American Medical Association study.

"These markets are ripe for the exercise of health insurer market power, which harms consumers and providers of care," the AMA wrote in its report. "Our findings should prompt federal and state antitrust authorities to vigorously examine the competitive effects of proposed mergers between health insurers."

In Ohio, the study found that a handful of companies is dominating the market in major metropolitan areas:

• In the Cleveland area, Medical Mutual controls 44 percent of the market, while WellPoint owns 20 percent.
• In Akron, Medical Mutual has 36 percent, WellPoint 24 percent.
• In Cincinnati, Wellpoint has 40 percent, United HealthCare 24 percent.