High value networks provide Montana business owners with a choice

By Richard Miltenberger

Business owners make choices every day that either set them up for success or failure – whether that means choosing how many employees to hire, what hours to open up shop, or even what color to paint the walls.

Determining how to offer employees health care can be potentially the most expensive decision an employer can make – but also the most important for an employee.

Choosing the best health insurance requires employers to weigh many factors, such as affordability, quality, and access, among others.  All of these are critical to ensuring the plan works for both the employer and the employees.  Without a workable plan, business and morale may suffer.

Montana businesses depend on their insurance companies to provide quality coverage that is affordable to the employee.  One of the most important tools health plans have on the shelf is the ability to offer different provider networks.  That means that our business owners have the flexibility to choose between more expensive health plans that have almost all doctors and hospitals versus more affordable health plans that have a more limited selection of doctors and hospitals.

Whether employers choose more expensive, broader networks or more affordable, smaller networks – the key is having the flexibility to choose.  Having that choice is critical to both the long-term stability of the business itself, as well as Montana’s entire health care marketplace.  Some insurers even bring that choice down to the individual employee level.

Unfortunately, some regulators are considering taking this choice away from Montanans.

The National Association of Insurance Commissioners (NAIC), the standard-setting organization of the insurance regulators from each state, will meet this summer here in Helena to debate model legislation that could result in a one-size-fits-all approach to provider networks, regardless of each state’s unique needs.  Obviously, our needs in Montana are different from what Massachusetts businesses may require, and we hope the commissioners agree.

The lifeline of any business – whether in Montana or Massachusetts – is flexibility.  Employers seek a balance that meets the needs of employees.  Having the choice of smaller, high-value networks is one way employers can help reduce costs for workers while still maintaining high quality of care.

Research shows that smaller networks do in fact allow health plans to offer more affordable options for employers – as much as 5-20 percent in premium cost-savings, according to a recent Milliman study.  These, smaller, high-value networks are particularly important given the wide variation in prices that doctors and hospitals charge for their services.

And consumers like smaller network plans.  A recent Morning Consult Tracking Poll found that a strong majority of Americans prefer “less expensive plans with a limited network of doctors and hospitals” over “more expensive plans with a broader network of doctors and hospitals.”

As employers continue to find ways to keep costs down while preserving high quality care for their employees, it’s critical that policymakers continue to allow provider networks that give the business community the flexibility it needs to thrive – not tie our hands with a one size fits all solution.

Flexibility and choice can be the difference between success and failure for a business whether in Montana or Massachusetts – and we hope the NAIC agrees.

Richard Miltenberger is a co-owner of Leavitt Great West Insurance Services in Helena.  He serves on the board of directors of the Montana Chamber of Commerce.