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HomeHealth InsuranceHow a lot do slim networks impression premiums? – Healthcare Economist

How a lot do slim networks impression premiums? – Healthcare Economist






Sufferers hate slim networks. Something that limits their alternative of physicians or hospitals is disliked. Individuals love extra alternative.

Payers, then again, like slim networks as a result of they save price–via the power to barter decrease charges–and probably improve high quality–if the contracted community has larger high quality physicians. In actual fact, based on the KFF Employer Well being Advantages Survey, each price and high quality are vital components in deciding on a supplier community.

https://www.kff.org/report-section/ehbs-2019-section-14-employer-practices-and-health-plan-networks/
https://www.kff.org/report-section/ehbs-2019-section-14-employer-practices-and-health-plan-networks/

A key query is then, is how a lot cash do slim networks save well being plans? That’s the query {that a} paper by Dafny et al. (2017) goals to reply. The authors use knowledge from the Robert Wooden Johnson Basis HIX Examine on silver-tier medical insurance plans supplied on the 2014-2015 ACA Marketplaces in 8 states (CA, CO, FL, MI, NJ, NY, TX, WA). After utilizing these knowledge and conducting a multivariate regression, the authors discover that:

…a rise in hospital community breadth…was linked to a premium improve of 5.7 p.c, or $191 per 12 months—given the nationwide common premium of $3,359 for a twenty-seven-year-old in 2014. A rise in doctor community breadth from small (equivalent to 10 p.c of physicians) to giant (equivalent to 40 p.c) was linked to a premium improve of 9.4 p.c, or $316 per 12 months. A rise in each hospital and doctor community breadth was linked to a premium improve of 15.7 p.c, or $527 per 12 months. 

https://www.healthaffairs.org/doi/10.1377/hlthaff.2016.1669

You’ll be able to learn the total paper right here.



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