Market Structure and the Performance of the U.S. Health Insurance Marketplace: A State-Level Analysis

32 Pages Posted: 1 Mar 2014

See all articles by Cassandra R. Cole

Cassandra R. Cole

Florida State University - College of Business

Enya He

University of North Texas - College of Business Administration

J. Karl

East Carolina University - College of Business

Date Written: January 9, 2014

Abstract

Health insurance premiums have more than doubled over the last ten years, with some suggesting that this may be the result of the high market concentration in the health insurance industry. In this paper, we conduct a state-level analysis in which we examine the health insurance marketplace, the degree of market concentration, and health insurance costs across states. We generally find that the barrier to entry into health insurance market is relatively low, as witnessed by the increase in the number of insurers operating in most states over the sample period; accordingly, the extent of market concentration has declined in recent years. We also find evidence of a positive relation between market concentration and insurer profits.

Suggested Citation

Cole, Cassandra R. and He, Enya (Min) and Karl, J., Market Structure and the Performance of the U.S. Health Insurance Marketplace: A State-Level Analysis (January 9, 2014). Available at SSRN: https://ssrn.com/abstract=2401213 or http://dx.doi.org/10.2139/ssrn.2401213

Cassandra R. Cole

Florida State University - College of Business ( email )

423 Rovetta Business Building
Tallahassee, FL 32306-1110
United States

Enya (Min) He (Contact Author)

University of North Texas - College of Business Administration ( email )

Eagle Student Services Center
Room 359
Denton, TX 76203
United States
940-565-3060 (Phone)
940-565-4234 (Fax)

HOME PAGE: http://www.cob.unt.edu/profiles/627

J. Karl

East Carolina University - College of Business ( email )

Greenville, NC 27858-4353
United States

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