Report: ACA plans have a third fewer providers than employer-based plans
By Lena H. Sun
July 15 at 5:48 PM - The Washington Post
Consumers who bought insurance on the health exchanges last year had access
to one-third fewer doctors and hospitals, on average, than people with
traditional employer-provided coverage, according to an analysis released
Wednesday.
The study by consulting firm Avalere Health provides a statistical basis for
anecdotal reports from consumers and others about the more limited doctor and
hospital choices in plans offered on marketplaces created by the Affordable Care
Act.
In these gnarrow networks,h health plans negotiate contracts with a select
number of providers who agree to be reimbursed at lower rates. That means the
insurers can set their premiums lower, at least theoretically. But, depending on
the planfs design, consumers typically pay more, and sometimes much more, if
they use a doctor or hospital outside the network.
Compared with traditional employer coverage, exchange plans had networks with
42 percent fewer cancer and cardiac specialists; 32 percent fewer
mental health and primary-care doctors, and 24 percent fewer hospitals, the
Avalere analysis found.
The report underscores the importance of consumers knowing whether particular
doctors or hospitals are included in their plansf networks. Some plans, such as
HMOs, donft permit out-of-network coverage.
Other plans do cover care provided by out-of-network doctors and hospitals,
but consumers pay more out of pocket than they would if they went to in-network
providers. And in those plans, consumers may find that those costs donft count
toward their deductibles or out-of-pocket maximums.
Insurance companies tend to be excluding traditional, high-cost teaching
hospitals and gexpensive, prestigious providersh from the networks, said Dan
Mendelson, Avalerefs chief executive. Thatfs not necessarily bad for consumers,
he said, because having several choices of providers does not always improve
quality of care.
A more tightly controlled network of providers could mean better management
of chronic conditions, such as diabetes and high blood pressure, he said.
A May study in Health Affairs found that California hospital networks are
narrower in exchange plans than in commercial plans, but that the networks have
a comparable or even higher average quality than networks of their commercial
counterparts.
A poll last year by the Kaiser Family Foundation found that the people most
likely to buy coverage on the insurance marketplaces were more willing than the
public at large and people with employment-based coverage to accept a narrower
network of doctors and hospitals in exchange for lower costs. In general, older
people and those with higher incomes prefer broad networks, even if they cost
more, while younger people and those with lower incomes are more evenly
divided.
Avalere researchers analyzed data submitted by the health plans for the
largest rating region in each of the five states that had the highest enrollment
in exchanges for 2015 coverage: California, Florida, Georgia, North Carolina and
Texas. Avalere compared the average number of providers in exchange networks
with commercial networks in the same geographic area for each of the five
categories of providers.
Lena H. Sun is a national reporter for The
Washington Post, focusing on health.