The three largest dental insurers have a median market share of 66.8%, according to a new report from the U.S. Government Accountability Office.
The GAO released a report March 9 examining market shares of dental and vision insurers, along with the impact of vertical integration. The office used 2024 enrollment data from the National Association of Insurance Commissioners to create its report. It also reviewed peer-reviewed studies from the last 10 years and interviewed industry stakeholders to gather additional information.
The GAO noted that little research is available showing the effects of vertical integration in dental and vision markets. The office concluded that market concentration varied across states for both fields.
Six notes from the report:
1. The combined market share of the three largest dental insurers in each state ranges between 37.9% and 97.5%.
2. The market share for the single largest dental insurer ranges between 13.6% and 95.1%.
3. The median market share of the single largest dental insurer is 38%.
4. The median number of dental insurers in each state is 39.
5. The GAO said it found two peer-reviewed studies examining the effects of concentration within the dental insurance market, including lower reimbursements for providers in more concentrated markets.
6. The office noted that it also interviewed dental professionals who provided “nongenerizable” observations about vertical integration, including challenges with negotiating contracts and reimbursements in concentrated markets.
