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Health insurers have lots of competition vying for the same consumers, especially in the health insurance exchanges, but one non-traditional company could be looking to compete against traditional insurers in a whole new way.
If Medicare Advantage plans had to compete for members like plans sold on the health insurance exchanges, insurers could provide high value at lower costs, reported the New York Times.
As private exchanges continue to build momentum, it's only a matter of time until they become the dominant sales channel for insurers. It's likely that in the near-future, payers will sell to all market segments via private single-insurer exchanges, according to a recent Array Health survey.
Private health insurance exchanges, which now cover more than 1.5 million people, hold the power to transform the health insurance industry because of their potential to boost competition and innovation among insurers.
Although the Obama administration has touted the claim that 95 percent of consumers live in areas with at least two insurers offering plans on the health insurance exchanges, a new analysis shows two insurers might not create enough competition, especially in rural areas.
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