The healthcare environment is always changing. Today, payers are facing high administrative costs. Increasing admin costs and pressing healthcare reforms are motivating payers to improve their efficiency.
For example, "To reduce administrative costs and meet regulatory mandates, payers are implementing more efficient payment delivery methods," according to InstaMed.
Commercial health insurance markets are also becoming more concentrated. According to a recent AMA study on national insurance markets:
- Payers are gradually increasing their market ownership
- Anthem has the most substantial geographic market share in the US, followed by Health Care Service Corp and United Health Group
- The highest market concentration increases have occurred in Kentucky, Alaska, South Carolina, Mississippi, South Dakota, Oklahoma, Vermont, Arkansas, Nevada and New Mexico
To learn more about payer trends, check out the AMA's recent report on Competition in Health Insurance.
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