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Risk Adjustment, Reinsurance Improved Financial Outcomes For Individual Market Insurers With The Highest Claims.
Health Aff (Millwood)
April 2017
Patricia Keenan is a senior researcher in the Center for Financing, Access, and Cost Trends at the Agency for Healthcare Research and Quality.
The Affordable Care Act (ACA) reformed the individual health insurance market. Because insurers can no longer vary their offers of coverage based on applicants' health status, the ACA established a risk adjustment program to equalize health-related cost differences across plans. The ACA also established a temporary reinsurance program to subsidize high-cost claims.
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