Provider panels can be either narrow or broad. Compared to a similarly sized health plan that uses a broad provider panel, a health plan that uses a narrow provider panel most likely can expect to
A) Experience higher contracting costs
B) Encounter increased difficulty in utilization management
C) Have to charge higher health plan premiums
D) Experience lower provider relations costs

Question

Quizplus · Accepted Answer

A narrow provider panel means that the health plan has fewer providers within their network. This often results in better negotiating power for the health plan in terms of contracts with providers, leading to lower provider relations costs. However, it may result in increased difficulty for members to access care, which could lead to lower member satisfaction and retention rates.

Provider Panels Can Be Either Narrow or Broad