Companies Slim Down on Health Plans

From L.A. Times, 4.3.11, by Duke Helfand

Thousands of employers in California and across the country are slashing expensive doctors and hospitals from their insurance rosters in a move to hold down rising healthcare costs — a trend that is gaining favor with corporate bosses, if not the rank and file.

The savings on insurance premiums — nearly 25% in some cases — are gained when companies switch their health plans to "narrow network" HMOs that offer fewer choices of medical providers.

California, with nearly 21 million people in health maintenance organizations, is driving the rapid expansion of these networks. More than 10,000 California employers and public agencies have enrolled, mostly since the recession struck in 2008.

Read the full article.

Published April 4th, 2011

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