Over the past several decades in the United States, more and more health care providers and health insurers have consolidated, increasing their market power. Highly concentrated markets have contributed to the growth in U.S. health care spending because they are associated with higher health care prices and insurance premiums, yet are not typically associated with higher quality of care. Given that states play a large role in regulating health care provider and insurer markets, it’s important to understand how concentration levels vary across the country, as well as examine the relative concentration levels between providers and insurers at the local level. Our previous research has shown that in markets with both high provider and insurer concentration, insurers have bargaining power to reduce prices, yet consumers and employers don’t usually benefit. Regulators can use this information to determine if policies are needed to protect consumers, as well as employers that provide health benefits to their workforces.
