The Price of For-Profit Insurance

Austin Frakt of The Incidental Economist highlights a study that suggests:

Sizeable [for-profit] insurers are more likely to exercise market power via price increases than are comparable NFP [not-for-profit] insurers. Second, pricing actions by dominant insurers have a ripple effect on rivals’ prices, further solidifying the evidence pointing towards oligopolistic conduct in many local insurance markets.

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