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

S-Tier
Journal: American Economic Review
Year: 2015
Volume: 105
Issue: 5
Pages: 110-14

Authors (3)

Leemore Dafny (not in RePEc) Igal Hendel (not in RePEc) Nathan Wilson (Government of the United State...)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

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.

Technical Details

RePEc Handle
repec:aea:aecrev:v:105:y:2015:i:5:p:110-14
Journal Field
General
Author Count
3
Added to Database
2026-01-29