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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?

To: John Koligman who wrote (7815)	7/26/2009 7:01:25 PM
From: TimF	Respond to of 42652

Insurance companies complain about the AMA's methodology in its market concentration studies, but the U.S. Government Accountability Office came to similar conclusions in a recent report on small business coverage. It found that the median share of the largest carrier in a region was 47%, and in 16 markets the largest carrier had a 50% share or higher. If the complaint is about methodology showing similar results from another group doesn't show much unless you can show that the other group used solid methodology, or at least that it uses methodology that is significantly different from the first group. Assuming those numbers are solid they don't necessarily indicate a large problem. Even 10% for the largest carrier might be a problem (at least if companies collude) while 90% might not be (if the dominant company only holds its dominance by treating the customer well). The number by itself doesn't tell you a whole lot except perhaps at the far extremes (like 1% since there would be to many players to easily collude, or 99+%) Beyond that is the question whether a "government option" will really allow for more competition. It would probably be subsidized, and at least in many markets might become the only option for basic coverage. If it isn't significantly subsidized and does operate like a private (if non-profit) concern, than it may simply fail to be competitive (thus not really increasing competition) or it may drive one or more marginal players out, thus not increasing or perhaps decreasing competition. A better way to address possibly inadequate competition in certain markets would be to drop the restrictions government imposes on competition.