In health insurance, what does "network" refer to?

In health insurance, the term "network" specifically refers to a group of healthcare providers, such as doctors, hospitals, and specialists, who have established agreements with a health insurance company to provide services at negotiated rates. These arrangements often lead to lower costs for both the insurer and the insured, as providers agree to offer their services to members of the network at reduced rates.

When patients choose to receive care from in-network providers, they typically benefit from lower out-of-pocket costs, as the insurance plan has predetermined rates with those providers. Conversely, if patients seek care from out-of-network providers, they may face higher charges or reduced coverage, depending on their specific plan.

Understanding the concept of a network is crucial for patients when assessing their health insurance options, as it directly impacts their access to medical services and their overall healthcare costs.