To better understand the presence of consolidation across the U.S. health care system, the AAMC Research and Action Institute has published a new data snapshot that compares the market share of providers to that of insurers to show the implications of consolidation across these two industries. The authors found that, despite concerns from policymakers and the public, the largest health systems by total inpatient hospital discharges have, on average, far less market share — a combined 43.1% of the market share in each state — compared to the top three large-group insurers, which hold an average of 82.2% of the market share in each state.
Additionally, the number of health systems has not changed substantially in recent years, but the number of insurers has declined from 2011 to 2020, decreasing from 640 to 472 large-group market insurers; the individual market saw an even larger drop from 1,529 insurers to 563. The increased consolidation of insurers suggests that policymakers’ focus on regulating provider consolidation is problematic.
Access the accompanying explainer video on health care market consolidation from Atul Grover, MD, PhD, Executive Director, AAMC Research and Action Institute.
- Washington Highlights