The argument being made by so many that MLR is the only force driving decisions may be flawed.
Last month, we started an exploration of the argument that insurance carriers are incentivized to increase rates (based on the ACA's MLR provision). On paper, it certainly does look like an advantageous strategy.
But the one factor I have never heard taken into consideration is one of the fundamental drivers of a free market economy: market share.
Even if there is collusion, what if one of the carriers breaks ranks? What if one of the major carriers simply committed to reducing costs by 10 percent? What if this allowed them to take a conservative 10 percent market share from each of the other four?
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