As the nation’s top five health insurance companies jockey through merger proposals that could leave just three large companies at the top, a big question is, what does it mean for consumers – and the rest of the industry? Those insured by large organizations with strong negotiating power can expect little if any change in premiums, says Mark Pauly, a Wharton professor of health care management. But individuals and small businesses would likely see health insurance premiums tick up. And while would-be merger partners often project greater efficiency and lower costs as a goal, it rarely turns out that way, Pauly adds. He offers additional views on the effects of the proposed mergers in this Knowledge@Wharton interview.
An edited transcript will be posted soon.
As the nation’s top five health insurance companies jockey through merger proposals that could leave just three large companies at the top, a big question is, what does it mean for consumers – and the rest of the industry? Those insured by large organizations with strong negotiating power can expect little if any change in premiums, says Mark Pauly, a Wharton professor of health care management. But individuals and small businesses would likely see health insurance premiums tick up. And while would-be merger partners often project greater efficiency and lower costs as a goal, it rarely turns out that way, Pauly adds. He offers additional views on the effects of the proposed mergers in this Knowledge@Wharton interview.
An edited transcript will be posted soon.
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