Affordable Care Act Forces Consolidation : ACA Kills Competition

The Affordable Care Act is working perfectly. Pitting the insurance industry against the health care industry and with the federal government stoking the fire, Single Payer can not be far behind.

And with the majority of the population not paying attention now with all of the other disasters that are occurring every week, November will be here and as usual, the people that have brought us to the brink of disaster will probably be reelected because it's so much easier not have to think about what's right and what's wrong in the world.

It's all so complicated. Just pull the leveler like always and go back to finding what's happening for the week end. The last poll out showed 40% of those questioned believe the democrats are doing a good job. Really, 40% of the voting population still unaware?

Why Health Care Has Consolidated
Source: Christopher Pope, "How the Affordable Care Act Fuels Health Care Market Consolidation," Heritage Foundation, August 1, 2014.

August 6, 2014

American health care is becoming more and more consolidated. Christopher Pope for the Heritage Foundation explains one reason why this has happened:

• Third party payment systems separate health care consumers from the real cost of their care. Hospitals can demand higher prices from insurers when they lack competitors in the area, so many hospitals have merged in order to dominate the local market.
• Between 1998 and 2012, the United States saw 1,113 hospital mergers and acquisitions concerning 2,277 hospitals. There are 5,000 hospitals today.
• By consolidating, hospitals have grown in power and reduced price competition in their respective regions. Without competitors to drive down prices, hospitals can negotiate higher fees from third party payers.

The efficiencies that would normally come from consolidation have not been passed on to consumers in the form of lower prices. According to research, hospital mergers in concentrated markets increase prices by 20 percent.

The Affordable Care Act consolidates health care markets even further, explains Pope, because it hinders the ability of insurance plans to compete with one another. Obamacare regulates prices and health insurance benefits, leaving little room for competition.