Narrow Networks: Analysis of the Past and Implications for the Future

Abstract

The Patient Protection and Affordable Care Act (PPACA) has created exchanges, or insurance marketplaces, where insurance can be purchased more efficiently to enhance availability of coverage. In 2013, nearly 70 percent of the plans available on the networks contain either narrow or ultra-narrow networks (Mckinsey & Company 2014). The prevalence of these narrow types of networks has implications to patients, providers, and insurers. The healthcare industry has the advantage of being able to compare narrow network models of the past and use the information gathered to predict outcomes and possible solutions to potential problems in the future. This research hopes to compare the reasons behind early implementation issues to current legislature and determine if the industry has learned from its mistakes.