The Patient Protection and Affordable Care Act's nudge toward narrow health care provider networks caused a minor uproar among both providers and consumers. The providers — mostly hospitals — who got left out of the networks were, understandably upset. But with consumers, the concern was focused on whether a narrow network would offer the same quality of services one received from broader networks.

A narrow look at a narrow network's experience in Massachusetts may offer some clues about the outcomes to be expected from the shift to narrow networks. Two Massachusetts academic researchers studied a pre-PPACA shift to narrow networks in the Bay State, and reported two major findings: lots of money was saved on health care following the switch, and the quality of care seemed to be just about the same as with the broader network.

The researchers — Jonathan Gruber and Robin McKnight — did their work under auspices of the National Bureau of Economic Research. They were presented with a case study: In 2011, the state offered covered employees three premium-free months of coverage if they'd switch to a narrow network. The researchers were then able to compare the experiences of those who switched to their previous broad-network experience, and to the experiences of those employees who didn't switch. Essentially, they looked at three years of data: 2010, prior to the switch; 2011, the year of the switch; and 2012, the second year into it.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.