In the ’80’s and 90’s, when HMOs first became widespread, we all experienced lower costs but less choice- we had to choose from a list of doctors and hospitals, i.e. “in-network providers”. But costs did stop rising, and in some cases actually fell.
Then came the managed care backlash and insurers allowed a much broader choice of doctors and hospitals.
Health care costs have nearly tripled since 1990 and now, the federal budget and nearly every state budget is threatened by extremely high health care costs. Of the many methods being used to try to contain costs, limiting consumer choice of providers is once again a common approach.
The way this works in practice is that health plans offer one set of prices for using “in-network providers”. If we use “out-of-network” providers, the amount we have to pay out of our own pockets is higher. Sometimes much higher.
Here is the question: How do you feel about having a limited choice of doctors and hospitals in return for lower costs?