What's Missing In The Illinois Health Insurance Exchange
From Crain's Chicago Business
Blue Cross & Blue Shield's near-monopoly over the Illinois health insurance exchange is an unhealthy development.
As my colleague Kristen Schorsch reported this week, Blue Cross scored 92 percent of the 217,500 people who signed up for coverage during the first enrollment period for the health insurance exchange Illinois set up under federal health care reform. It's not surprising, given the way Blue Cross dominates health insurance generally in Illinois, with about 70 percent of the market.
In many ways, Blue Cross has earned its No. 1 ranking. Customers generally give the company high marks for price, coverage and provider choice. Market clout enables Blue Cross to negotiate lower rates with hospitals and doctors, allowing it to compete aggressively on price when it chooses to.
And Blue Cross went all out to win new customers coming into the health insurance market through the exchanges. For nearly every type of plan and beneficiary, Blue Cross offered the best prices among six insurers that participated in the inaugural enrollment period.
“Our goal was to expand access to health care in the states in which we operate BCBS health plans,” said a spokeswoman for Blue Cross' parent company, Chicago-based Health Care Service Corp. “We did this by competitive pricing, expansive product selection, an array of provider network options and our commitment to help consumers manage their health care choices and decisions.”
Still it's worrisome when a single company controls such a commanding share of any market, particularly one as vital as health insurance. Blue Cross' dominant market share gives it outsize influence over the availability and cost of health care, and the financial health of hospitals and doctors.
Read more in our daily News Update...
From Crain's Chicago Business
Blue Cross & Blue Shield's near-monopoly over the Illinois health insurance exchange is an unhealthy development.
As my colleague Kristen Schorsch reported this week, Blue Cross scored 92 percent of the 217,500 people who signed up for coverage during the first enrollment period for the health insurance exchange Illinois set up under federal health care reform. It's not surprising, given the way Blue Cross dominates health insurance generally in Illinois, with about 70 percent of the market.
In many ways, Blue Cross has earned its No. 1 ranking. Customers generally give the company high marks for price, coverage and provider choice. Market clout enables Blue Cross to negotiate lower rates with hospitals and doctors, allowing it to compete aggressively on price when it chooses to.
And Blue Cross went all out to win new customers coming into the health insurance market through the exchanges. For nearly every type of plan and beneficiary, Blue Cross offered the best prices among six insurers that participated in the inaugural enrollment period.
“Our goal was to expand access to health care in the states in which we operate BCBS health plans,” said a spokeswoman for Blue Cross' parent company, Chicago-based Health Care Service Corp. “We did this by competitive pricing, expansive product selection, an array of provider network options and our commitment to help consumers manage their health care choices and decisions.”
Still it's worrisome when a single company controls such a commanding share of any market, particularly one as vital as health insurance. Blue Cross' dominant market share gives it outsize influence over the availability and cost of health care, and the financial health of hospitals and doctors.
Read more in our daily News Update...