A recent report sheds some light on why health insurance rates in Texas rose nearly six times faster than wages between the years 2000 2007. Data released by the American Medical Association shows that two insurance companies, Blue Cross Blue Shield and United Healthcare, control 68 percent of the insurance market in the state. “This lack of competition is bankrupting working families and small businesses and depriving consumers of choice,” said Justin Berrier, a researcher who contributed to the report by Health Care for America Now, a national organization representing more 1,000 groups advocating health care reform.

While this “highly concentrated” business model is hurting families, insurance company profits rose from $2.44 billion in 2000 to $12.8 billion in 2007. The idea that Texans have access to a vibrant, competitive market is just not rational. Only real reform of the state’s insurance industry will bring to bear a market that works for consumers, and not just shareholders.