Narrow Networks Growing More Common

narrownetworksHealth insurers are limiting the physician and hospital options they offer through their plans. TRANSLATION: Insurers are limiting provider choice by eliminating providers who want more money than those willing to work for less.

Contributed by Bill Ebaugh, Principal Sierra Berkshire & Associates

Data Indicate Most Insurers Will Offer Narrower Networks In 2017.

On the front of its Business & Tech section, the Wall Street Journal  (8/31, B1, Mathews, Subscription Publication) reports that in an effort to offset losses from their Affordable Care Act exchange businesses, health insurers are limiting the physician and hospital options they offer through their plans. An analysis conducted by McKinsey & Co. found that 75 percent of plans which will be offered through the exchanges in 2017 will probably have exclusive provider organizations, or EPOs, which generally use narrow networks. Only 25 percent of ACA plans for 2017 will offer broader networks. The Journal says that according to an HHS spokesman, surveys indicate ACA enrollees are happy with the clinicians in their plans, and insurers are making changes based on consumer demand.

 

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