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Are Integrated Plan Providers Associated With Lower Premiums on the Health Insurance Marketplaces?
Ambar La Forgia1, Jared Lane K Maeda2, Jessica S Banthin2
11 University of Pennsylvania, Philadelphia, PA, USA.
Vertically integrated health plan providers, which combine insurance and healthcare services, offer modestly lower premiums in health insurance marketplaces. This growing sector
Area of Science:
- Health Economics
- Healthcare Policy
- Insurance Market Analysis
Background:
- Increasing consolidation in the health insurance industry.
- Hospitals and health systems are entering the insurance market (vertical integration).
- Insurers are actively acquiring healthcare providers.
Purpose of the Study:
- To compare premiums of integrated plan providers with other insurer types.
- To analyze pricing behavior within health insurance marketplaces (HIMs).
- To understand the impact of integrated plan providers on premium competition.
Main Methods:
- Descriptive study comparing lowest-priced silver plans.
- Analysis of data from 2015 and 2016 health insurance marketplaces.
- Comparison between integrated plan providers and other insurer types.
Main Results:
- Integrated plan providers were associated with modestly lower premiums.
- These lower premiums were observed relative to most other insurer types.
- Early insights into premium competition dynamics on the HIMs.
Conclusions:
- Vertically integrated plan providers represent a growing segment in health insurance marketplaces.
- Their pricing behavior may influence future premium trends.
- Recognizing integrated plan providers as a distinct category has significant policy implications.
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