Minor premium increases send customers elsewhere

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To retain and attract consumers when selling plans through health insurance exchanges, insurers must price their premiums "very competitively," according to a University of Michigan study released Wednesday. Researchers found that even a $10 increase in premiums could drive consumers to shop for a different insurance plan, reported CBS Detroit. "Competition may be substantial," said Richard Hirth, University of Michigan professor and study coauthor. "Based on our estimates, if an insurer tries to impose a large increase, it would see its market share decline 1-2 percent for every 1 percent increase in its premiums." Article