HEALTH INSURANCE EXCHANGES - Lower Premiums, Fewer Choices?

Reminder, the for-profit health insurance industry is NOT in business to provide health care.  They exist ONLY to make a profit (a BIG profit) from customers who cannot really say no.

"Lower Health Insurance Premiums to Come at Cost of Fewer Choices" by ROBERT PEAR, New York Times 9/22/2013

Excerpt

Federal officials often say that health insurance will cost consumers less than expected under President Obama’s health care law.  But they rarely mention one big reason: many insurers are significantly limiting the choices of doctors and hospitals available to consumers.

From California to Illinois to New Hampshire, and in many states in between, insurers are driving down premiums by restricting the number of providers who will treat patients in their new health plans.

When insurance marketplaces open on Oct. 1, most of those shopping for coverage will be low- and moderate-income people for whom price is paramount.  To hold down costs, insurers say, they have created smaller networks of doctors and hospitals than are typically found in commercial insurance.  And those health care providers will, in many cases, be paid less than what they have been receiving from commercial insurers.

Some consumer advocates and health care providers are increasingly concerned.  Decades of experience with Medicaid, the program for low-income people, show that having an insurance card does not guarantee access to specialists or other providers.

Consumers should be prepared for “much tighter, narrower networks” of doctors and hospitals, said Adam M. Linker, a health policy analyst at the North Carolina Justice Center, a statewide advocacy group.

“That can be positive for consumers if it holds down premiums and drives people to higher-quality providers,” Mr. Linker said.  “But there is also a risk because, under some health plans, consumers can end up with astronomical costs if they go to providers outside the network.”

Insurers say that with a smaller array of doctors and hospitals, they can offer lower-cost policies and have more control over the quality of health care providers.  They also say that having insurance with a limited network of providers is better than having no coverage at all.