What is a key characteristic of a narrow network in managed care?

• A. Narrow network reduces access but lowers costs; broad network increases access and costs.
• B. Narrow network increases access.
• C. Narrow network increases costs.
• D. Network size does not affect cost or access.

Answer: (A)

In managed care, the size of the network is about balancing cost control with patient access. A narrow network includes fewer contracted providers, which lets the plan negotiate deeper discounts and tighter utilization controls. That drives down overall costs, but it also means patients have fewer providers to choose from and may find it harder to access care or get timely appointments. Out-of-network options are usually limited or costly, reinforcing the access trade-off. Broad networks, by contrast, offer more provider choices and easier access but tend to raise costs because more providers are paid at higher rates and there’s less constraint on utilization. So the best description is that a narrow network lowers costs but reduces access.