General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsHow does keeping a narrow provider network reduce costs to insurance companies?
I keep reading this in various places but I don't understand what are likely some obvious reasons.
Edification would be appreciated, thanks!
djean111
(14,255 posts)Or only that many providers would agree to their terms?
unblock
(52,317 posts)Recursion
(56,582 posts)It's an unavoidable inefficiency of multiple-payer. Insurers have individual deals worked out with most providers, and each of those has a sunk cost of negotiating and administering it. Weird thing I learned running even a very small business: a higher, predictable, expense is better than an often lower, unpredictable expense.
Oddly enough, as much as I hate Wal~Mart, their health clinic model offers a way out. If the providers have as much clout as "Wal~Mart with a Nurse Practitioner in every store" will (and CVS/Rite Aid/etc. are moving that way too) then that will take the network issue largely out of the picture, and other providers will just have to match the chains' prices.
GeorgeGist
(25,323 posts)I've seen a local hospital advertise that they DONT accept certain insurance.
DebJ
(7,699 posts)pressure on some of the insane and random pricing that goes on in many hospitals.