Obamacare Has Narrow Networks. But Why Are There Any Networks At All?

According to recent research, about two-thirds of hospital networks on the Obamacare exchanges are “narrow” or “ultra-narrow”; This was defined by surveying 20 urban areas and identifying the 20 biggest hospitals in each area; An insurer with at least 15 hospitals in network have a “broad” network; those with 7 to 14 hospitals have a “narrow” network; and those with 6 or fewer hospitals have an “ultra-narrow” network.

But why do health insurers have networks at all?

Read the entire column at the Independent Institute's Beacon blog or John Goodman's Health Policy Blog.