Modern Healthcare quoted Manatt's Joel Ario, a managing director with Manatt Health, on the advantages of narrowing networks.
Modern Healthcare reports that the Obama administration has faced a backlash from consumers and providers over patients losing access to their preferred doctor or hospital under narrow network plans sold on the exchanges. Proposals to require broader networks have surfaced in several states.
But Ario cautioned that narrowing networks and steering patients to higher quality, lower-cost hospitals and physicians is a valuable tool for insurers in keeping premiums affordable.
"The market really does need to have some room to innovate here," Ario said. "It's important not to overreact to some of the narrow network products that are out there."