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Many health insurers to limit choices of doctors, hospitals

The Wall Street Journal, August 15, 2013

Insurers are betting that consumers who buy plans on the exchanges will be willing to trade some choice and flexibility in order to get cheaper premiums. Smaller networks of providers generally translate to lower premiums, because insurers can negotiate discounts with health-care providers who will then have less competition for patients within the network.WellPoint said it is using more-limited networks for most of the new marketplaces, and it aims to take at least 10% out of the premium costs. [Registration required.]