Missouri Department of Insurance Director John Huff has admitted that the state’s health market lacks rate transparency, regulatory oversight and competition.
During the annual meeting of the Missouri Insurance Coalition on February 18, Huff expressed concern over the narrow network health plans and persistent worries about the lack of price transparency in the state.
Huff said health insurance is the top driver of consumer complaints filed in his department.
"While products ranging from automobile insurance to pet insurance are subject to rate filings with the department, health insurance rates are not transparent, not subject to regulatory oversight and are not required to even be filed with the regulator," he said.
Missouri’s health insurance sector is among the most concentrated and least competitive in the state, and the commissioner noted that the four largest insurer groups have a combined market share exceeding 90 percent in the overall market.
"The market shares of the largest insurers indicate that the health insurance market is overly concentrated and is dominated by just a few carriers.” He said that increased competition in the market would bring down rates for health insurance policyholders, “Competition directly benefits consumers. It's no coincidence that Missouri has a highly competitive auto insurance market and has some of the lowest rates in the country.”
Huff explained that based on recent data released by the National Association of Insurance Commissioners, Missouri is ranked 35th for the cost of auto insurance.
