Just how much competition exists between Medicare Advantage (MA) plans sparked a recent debate when a Commonwealth Fund study argued: “Not much.”
Using the Herfindahl-Hirschman Index (HHI), the standard means of measuring market concentration, Commonwealth Fund researchers found that 97% of markets in the United States in 2012 were dominated by only a small number of MA plans. That number might get even smaller, with merger-and-acquisition activity possibly creating three major insurers out of the present top five.
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