What is a 'narrow network' plan?

A ‘narrow network’ plan is defined as health plans that limit the number of providers available to members. This type of plan is designed to control costs while maintaining quality of care by working closely with a select group of healthcare providers. By narrowing the network of available providers, these plans can negotiate better rates, which can lead to lower premiums for policyholders.

Members of a narrow network plan usually have limited choices when seeking care, which can encourage the use of in-network services that are pre-negotiated for cost efficiency. While access to specialists and hospitals may be restricted compared to broader options, the intent is often to ensure that the providers within the network meet certain standards of quality and cost-effectiveness, benefiting both the insurer and the insured.

In contrast, plans with a wider selection of providers, those that only cover emergency services, or those that have international coverage do not meet the specific characteristics of a narrow network plan, which focuses on limiting provider access as a primary feature.