ACA losses spurring payers to narrow provider networks: 5 highlights

Many insurance companies lost a substantial amount of capital on the Affordable Care Act exchanges, and many are offering narrower networks of providers as a result, according to The Wall Street Journal.

McKinsey conducted an analysis of regulatory filings for 18 states and the District of Columbia to understand the plans payers will offer next year.

Here are five highlights:

1. The analysis found 75 percent of payers' offerings on state exchanges will likely include a health-maintenance organization or an exclusive provider organization in 2017.

2. Last year, of the states analyzed, 49 percent offered HMO plans and 28 percent offered preferred provider organization plans.

3. Going forth into next year, 62 percent will be HMOs and 17 percent will be PPOs.

4. Erica Coe, a McKinsey partner, said payers who offer HMO or HMO-like plans often have higher margins and lower rate increases.

5. If PPOs continue to go down, payers may "dump" their remaining plans, which could have steep repercussions on patients and providers.

More news related to coding, billing and collections:
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ACA enrollment hits 11.1M Americans, falls 12.9M short of CBO predictions: 5 things to know

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