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|Narrow Network Impact on Premium Rates and ACA Marketplace: New Research Findings|
network strategies have been increasingly deployed by health plans
seeking delivery systems with enhanced potential to provide optimum
value based care with respect to cost and quality. Many provider
sponsors have pursued development or evolution of narrow network
capabilities in response to Medicare ACO and commercial ACO and
value based demand.
An expectation exists that health plan narrow network offerings should
yield a relatively lower premium cost. The
question now at hand is to what extent have narrow networks delivered on
lower premiums in the marketplace to date?
Previously, studies that have investigated the empirical relationship between narrow networks and premiums have used only a single state. A new study - funded by the Robert Wood Johnson Foundation “Measuring Provider Network Characteristics of Health Insurance Exchange,” principal investigator, Daniel Polsky - examined data from all silver plans offered in the 2014 health insurance exchanges in the fifty states and the District of Columbia to estimate the association between the breadth of a provider network and plan premiums. The study found that within a market, for plans of otherwise equivalent design and controlling for issuer-specific pricing strategy, a plan with an extra-small network had a monthly premium that was 6.7 percent less expensive than that of a plan with a large network.
Please join us Tuesday January 10th, 2017 at 2 PM Eastern as Daniel Polsky, Executive Director of the Leonard Davis Institute of Health Economics, explains detailed research findings relating to the impact and implications of narrow networks on health plans premiums with respect to the public marketplaces. Click here for detailed information and to register or call 209.577.4888.
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