Monopsony Power Breeds Antitrust Concerns

Law360, New York (June 7, 2006, 12:00 AM EDT) -- The health insurance industry is facing myriad issues due to increasingly concentrated markets. One of these issues, monopsony power, has some calling for increased antitrust regulation. But monopsony may prove to be more of an economic question than a competition issue.

Monopsony power, which is when a single buyer controls the market and therefore can drive down prices at will, has raised questions across the healthcare insurance industry, as healthcare providers object to what they see as an unlevel playing field.

“From an antitrust perspective, what...
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