Network Formation and Bargaining in Vertical Markets: The Case of Narrow Networks in Health Insurance

2021 ◽  
Author(s):  
Soheil Ghili
Keyword(s):  
Health Insurance ◽  
Network Formation ◽  
Narrow Networks

Measuring Consumer Valuation of Limited Provider Networks

2015 ◽  
Vol 105 (5) ◽  
pp. 115-119 ◽  
Author(s):  
Keith Marzilli Ericson ◽  
Amanda Starc
Keyword(s):  
Health Insurance ◽  
Willingness To Pay ◽  
Consumer Valuation ◽  
Wide Range ◽  
Provider Networks ◽  
Narrow Networks ◽  
Additional Value ◽  
Additional Role ◽  
Brand Preferences

We measure the breadth of insurance networks in the Massachusetts health insurance exchange. Using our measures, we estimate consumer willingness-to-pay for broad and narrow networks. We find that consumers have a wide range of plans available with dramatically different networks. While consumers value broader networks, their willingness-to-pay is smaller than the brand premium, indicating an additional role for brand preferences. Consumers place additional value on star hospitals, which may affect upstream negotiations. Finally, we find significant geographic heterogeneity in the value of broad networks.

scholarly journals Narrow Networks on the Health Insurance Exchanges: What Do They Look Like and How Do They Affect Pricing? A Case Study of Texas

2015 ◽  
Vol 105 (5) ◽  
pp. 110-114 ◽  
Author(s):  
Leemore Dafny ◽  
Igal Hendel ◽  
Nathan Wilson
Keyword(s):  
Health Insurance ◽  
Affordable Care Act ◽  
First Year ◽  
Narrow Gap ◽  
Limited Evidence ◽  
Hospital Networks ◽  
Using Data ◽  
Narrow Networks ◽  
Insurance Exchanges

The Affordable Care Act has engendered significant changes in the design of health insurance products. We examine the “narrowness” of hospital networks affiliated with plans offered in the first year of the marketplaces. Using data from Texas, we find limited evidence of a tight link between pricing and a simple measure of network breadth, or a more complex measure of network value derived from a logit model of hospital choice. The state's largest insurer priced its narrow networks at a fairly constant discount relative to its broad networks, notwithstanding significant variation in its broad-narrow gap across geographic markets in Texas.

scholarly journals Narrow Networks On The Health Insurance Marketplaces: Prevalence, Pricing, And The Cost Of Network Breadth

2017 ◽  
Vol 36 (9) ◽  
pp. 1606-1614 ◽  
Author(s):  
Leemore S. Dafny ◽  
Igal Hendel ◽  
Victoria Marone ◽  
Christopher Ody
Keyword(s):  
Health Insurance ◽  
Narrow Networks ◽  
The Cost

scholarly journals Repeal and Replace of Affordable Care: A Complex, but Not an Impossible Task

2016 ◽  
Vol 8;19 (8;11) ◽  
pp. E1109-E1113
Author(s):  
Laxmaiah Manchikanti
Keyword(s):  
Health Care ◽  
Health Insurance ◽  
Affordable Care Act ◽  
Insurance Companies ◽  
Patient Centered ◽  
President Obama ◽  
Comprehensive Health ◽  
President Elect ◽  
The Law ◽  
Narrow Networks

The Affordable Care Act (ACA), signature legislation of President Obama, was arguably the most consequential and comprehensive health care reform since Medicare was introduced as part of President Lyndon B. Johnson’s great society. It has been claimed that many of the law’s reforms are now so integrated in the health system that full repeal would be impractical, while others including President Elect Trump have rejected that idea and called for full repeal and replacement claiming ACA law cannot be fixed. A tsunami of increasing regulatory burden over the past 8 years, the current health care milieu has moved independent practitioners towards hospital employment in great numbers. In addition, public opinion has been slowly climbing against ObamaCare with 54% of Americans now opposing the law. President Obama has indicated that the law has accomplished many of its goals, including increasing accessibility, affordability, and quality of health care. However, others have contradicted these assertions and described the ACA as “insurance for many with coverage for few.” Some believe that the ACA might be more appropriately labeled the “Medicaid Expansion Act.” There are multiple plans developed over the years by republican members of the congress; however, of significant consequence and importance are President-elect Trump’s proposals and the plan developed by Speaker Paul Ryan to repeal and replace the ACA. The President-elect has described the problems he perceives with the ACA; rapidly rising premiums and deductibles, narrow networks, and limits of coverage imposed by health insurance companies. The Presidentelect has indicated that his goal will be to create a patient-centered health care system that promotes choice, quality, and affordability with health insurance and health care, and take any needed action to alleviate the burdens imposed on American families and businesses by law. Key words: Affordable Care Act, ObamaCare, Medicaid, exchanges, Trump plan, repeal, replace

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