Can Narrow Network Group Health Insurance Plans Save Your Business Money?

For many small businesses in Colorado narrow network group health insurance plans offer monthly premium savings and benefit enrichment advantages.  Providing health-insurance benefits is key to employee retention, but rising costs can make this a challenge for small-business owners.

Have you been considering offering group health insurance to the employees of your Colorado small business? If so, you probably know that providing your employees health care is difficult because health insurance can be expensive.

So what do you do?

As a small business health insurance broker in Colorado, we have seen first hand many local business owners save money by using narrow network group health insurance.  

But there are a few things you should know before you dive into narrow network group health insurance plans  to ensure you don’t waste money or aggravate your employees.

This post will tell you what you need to know to find out if narrow network group health insurance plans will let you successfully provide health insurance to the employees of your Colorado small business.

What is a Healthcare Provider Network?

Before we dive into narrow network group health insurance plans, I want to define the term “health care provider network” so we are all on the same page.

Health care providers are the hospitals, doctors, specialist and staff that tend to your health care needs.  

A health care provider network limits enrollees to a predefined group of health care providers. Essentially the health care providers “team-up” into networks to reap the benefits of economies of scale.

For example, a provider network will pre-negotiate medical service rates with insurance companies.  This saves the providers the time and expense of billing insurance companies for specific services.

What are Narrow Network Group Health Insurance Plans?

A narrow network group health insurance plan represents a small segment of the health care providers within a specific area.  

“Narrow Network = Smaller Number of Doctors and Hospitals”

The goal of a narrow network insurance plan is to save the business owner money by offering health plans at a lower price. Since not all hospital and doctor networks are included in these plans, insurance companies can negotiate better pricing with providers that do enroll. The providers benefit from the added volume of business that they receive from the health plans.  The result is premiums for narrow network group health plans are lower and attractive to price-sensitive small business owners in Colorado trying to find cost-effective health insurance to offer their employees.

Benefits to a Colorado Small Businesses Choosing Narrow Networks

Narrow networks are a new trend sweeping through many Denver and Colorado Springs group health insurance plans since 2015. Over the last two or three years, more health plans have developed much smaller doctor networks.

The prices for narrow network plans are definitely lower than what is found with plans that have broader networks. On average, there is a price differential of about five percent between broad and narrow network plans.

There are a few narrow network plans that have even enhanced the overall benefit level of the narrow network plans. There are plans on the Colorado group health insurance market that cover primary care visits at 100% and cover simple lab and x-rays and urgent care centers at low copayments.

For many Colorado small businesses, narrow network plans offer monthly premium savings and benefit enrichment advantages. These plans do not have medical screening questions and cover pre-existing conditions immediately. Plans must meet certain regulations, like having enough network providers in different specialties and throughout the geographic area.

What more info? Read this detailed analysis of narrow networks in Consumer Reports.

Conclusion

If you have a small business in Colorado, the narrow network group health insurance plans in your area are definitely worth reviewing.

So now that you know the definition and benefits of narrow network group health insurance, you’re ready to speak with a Colorado group health insurance broker to find out how much you can save on your employee health insurance.

Schedule a Free Consultation with a Colorado Group Health Insurance Broker

Contact Preferred Insurance today to speak with a licensed Colorado health insurance broker with 30 years of experience and access to dozens of narrow network group health insurance plans and policies.

Call (719) 599-7989

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