Regional Vice President of Sales The Retirement Plan Company
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Compass
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Controlling Health Care Costs Through Limited Network Insurance Plans: Evidence from Massachusetts State Employees
National Bureau of Economic Research [NBER] Sept. 8, 2014
"[E]nrollees are very price sensitive in their decision to enroll in limited network plans, with the state's three month 'premium holiday' for limited network plans leading 10% of eligible employees to switch to such plans. We find that those who switched spent considerably less on medical care; spending fell by almost 40% for the marginal complier. This reflects both reductions in quantity of services used and prices paid per service. But spending on primary care actually rose for switchers; the reduction in spending came entirely from spending on specialists and on hospital care, including emergency rooms."
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