Insurer Market Power Lowers Providers' Prices

This article originally appeared here.
Share this content:
Insurer Market Power Lowers Providers' Prices
Insurer Market Power Lowers Providers' Prices

WEDNESDAY, Sept. 20, 2017 (HealthDay News) -- Insurers have the bargaining power to reduce provider prices in highly concentrated provider markets, according to a report published in the September issue of Health Affairs.

Richard M. Scheffler, Ph.D., and Daniel R. Arnold, from the University of California at Berkeley, analyzed how provider and insurer market concentration -- as measured by the Herfindahl-Hirschman Index (HHI) --interact and are correlated with prices.

The researchers found that insurers have the bargaining power to reduce provider prices in highly concentrated provider markets (HHI > 2,000). Specifically, in highly concentrated markets, hospital admission prices were 5 percent lower, and cardiologist, radiologist, and hematologist/oncologist visit prices were 4, 7, and 19 percent lower, compared to markets with HHI < 2,000. There was no evidence that high insurer concentration reduced visit prices for primary care physicians or orthopedists.

"The policy dilemma that arises from our findings is that there are no insurer market mechanisms that will pass a portion of these price reductions on to consumers in the form of lower premiums," the authors write.

Abstract
Full Text (subscription or payment may be required)

Share this content:

is free, fast, and customized just for you!




Already a member?

Sign In Now »

Trending Activities

All Professions

Drug Lookup

Browse drugs by: BrandGenericDisease

More in Home

Phone-Based Intervention Aids Rheumatoid Arthritis Care

Phone-Based Intervention Aids Rheumatoid Arthritis Care

Educational phone calls with nurses promote shared decision making in care

Early PT Linked to Less Opioid Use in Musculoskeletal Pain

Early PT Linked to Less Opioid Use in ...

For opioid-naive patients, early physical therapy tied to less opioid use in shoulder, neck, knee, back pain

Emotional Stress of Holidays Can Trigger Heart Attacks

Emotional Stress of Holidays Can Trigger Heart Attacks

Higher risk seen on Christmas Eve, particularly in older adults with diabetes, heart disease

is free, fast, and customized just for you!




Already a member?

Sign In Now »