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The 2008 update of Competition in Health Insurance: A Comprehensive Study of U.S. Markets presents new data on the degree of competition in different regions of the country. It is intended to help identify areas where consolidation among health insurers may have harmful impacts on consumers, providers of care and the economy. Market shares and concentration (HHI) measures are presented for 314 metropolitan areas and 42 states. This study finds that the vast majority of markets are highly concentrated and are dominated by one or two health insurers. These findings, coupled with higher insurance premiums, higher profits, lower scope of benefits and high barriers to entry, leads to the conclusion that health insurers are exercising market power in many parts of the country.
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