Philadelphia-based University of Pennsylvania researchers conducted an analysis, finding payers may offer narrower provider networks to offer low-cost plans to consumers, according to Forbes.
Here are five takeaways:
1. The analysis found health plans with an "extra-small network" had monthly premiums that were 6.7 percent less costly than plans with a larger network.
2. Daniel Polsky, PhD, executive director of the Leonard Davis Institute of Health Economics at University of Pennsylvania, noted offering narrow networks is one of payers' remaining viable options to provide consumers lower cost plans on the marketplaces. Dr. Polsky stated, "The success of coverage expansions could be tied to the successful implementation of narrow networks."
3. Of the plans offered on public exchanges, nearly 50 percent are health maintenance organizations. HMO plans often limit consumers' options for providers "within a predetermined network," a Blue Cross Blue Shield analysis found.
4. Health insurance companies often say they are forced to offer narrow networks so they can closely keep tabs on patients' medical claims.
5. Despite possible disgruntled consumers, the researchers noted narrow networks may be beneficial to Americans. The researchers wrote, "Given the subsidy structure within the marketplaces, the benefits of lower premiums not only accrue to the consumer but also generate savings for the taxpayers."
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