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Procurement firm: Group health not that bad

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To a market research firm that analyzes companies’ buying power, the group health insurance market looks reasonably friendly to the customers.

Analysts at IBISWorld have given buyers in the group health market a buyer power score of 2.9 on a 5-point scale.

The analysts give low scores when buyers in a market seem to have a low level of buying power, and a high score when buyers seem to have a high level of buying power.

The analysts have given buyers in some markets higher buyer power scores in recent months and buyers in other markets lower scores.

The group health market earned the same buyer power score as the market for industrial refrigerators. The analysts gave buyers in the packaging machine market a score of 3.0, and buyers seeking real estate appraisal services a score of 2.8. Buyers of coiled tubing services received a score of just 2.4.

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Rising prices, a somewhat limited pool of suppliers, and worries about the risk that vendors will fail hurt group health buyer power, but access to self-funding strengthens buyer power, the analysts say.

“The availability of substitutes erodes the price of health insurance, which benefits buyers,” the analysts say.

See also: IBISWorld: Brokers Lag In Annuity Sector