The Pennsylvania chapter of Health Care for America Now released a new report today showing that consolidation in the private health insurance industry is creating skyrocketing premiums for both patients and employers. Pennsylvania’s two largest health insurers, Highmark and Independence Blue Cross control 72 percent of the market statewide. When looked at a local level, however, the situation is even worse, with three out of four local market ratings being dominated by a single company. From the point of view of the regional insurance markets, Pennsylvania has levels of concentration exceeded by only twelve states. This kind of consolidation means that an insurer can, without fear of consequences, raise premiums and/or reduce the variety of plans or quality of services offered to customers. This is what we have seen: from 2000 to 2007, premiums in Pennsylvania had risen 86 percent compared to a meager 13 percent increase in wages. This… Continue reading