Need to understand benefits of insurer mega-mergers

Concerns over lack of competition in the health industry have again taken the driving seat after Anthem's proposed merger with Cigna following Aetna's acquisition of Humana. Experts say there is a need that policy makers must take cognizance of potential benefits of industry consolidation.

Consumers could have less burden of shelling out money for costly medicines if there is greater efficiency and market power of larger insurance plans, which could be achieved by offsetting the bargaining power of health-care providers.

Only one or two hospitals dictate the cost of care in many US communities. It was learnt from recent report by Kaufman, Hall & Associates LLC that a jump of 44% took place in the number of hospital mergers and acquisitions between 2010 and 2014.

The Affordable Care Act requires insurers to pay at least 80%-85% of every premium dollar on consumer medical claims and efforts that are meant to brig improvements in the quality of care.

Health-insurance companies must consider taking all customers, regardless of their health. The Affordable Care Act requires risk adjustment payments to move money from health plans that enroll healthier populations to those with sicker people. Health insurance must not avoid sick people any more. State exchanges could also play a big role in improving the operation of insurance markets.

Large insurance companies could provide significant help in compensate for health-care costs by brining radical changes in how heath care is paid for and delivered.

Denouncing the evils of large insurance companies is an easy task, but they can raise the quality and bring down the costs of American health care.