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Limiting choice to control health spending: A caution

By The New York Times  
   September 16, 2014

To what extent will the recent moderation in the growth of health care prices and spending continue? This is a big question, and the answer relies on many factors. But for plans offered in the new health insurance exchanges as well as a substantial minority of employer-sponsored plans, it may depend, in part, on how long consumers are willing to trade lower premiums for less choice. History offers a cautionary tale. Insurers selling plans in the exchanges are offering fewer choices of doctors and hospitals. According to a 2013 survey by Mercer of employers who sponsor work-based health plans, over one-quarter of employers with more than 20,000 employees and 15 percent of those with over 500 employees offer plans with limited networks of providers selected for quality, as well as cost, considerations.

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