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Gigantic Health Insurance Companies Might Not Be So Bad, After All
Mother Jones

Among other things, Austin Frakt has taught me to view the healthcare market as a competition between providers and insurance companies. If you have a market served by lots of hospitals and only one or two insurance carriers, then the insurance companies have a lot of leverage: they each represent a huge chunk of the customer base and can threaten to take their business elsewhere if a hospital charges too much. In the opposite situation, with only one or two hospitals in a region, they’re the ones with the leverage.

Even if their prices are high, insurance companies can’t withdraw their business because there are no other choices available.