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In the discussion thread: When does ACA become a "failure"? [View all]

Response to functioning_cog (Reply #32)

Thu Mar 13, 2014, 03:29 PM

33. I said they may require a cash infusion this year. Your link confirms it. What are you arguing?


If the market ends up imbalanced, how does Obamacare address that?

The ACA provides for what are called the “three R’s” – reinsurance, risk corridors, and risk adjustment. Reinsurance is a pot of money, funded by a tax on every health plan, that helps insurers cover the costs of expensive claims. Under a recent rule change, reinsurance would pay 80 percent of the cost of claims over $45,000, down from $60,000. The ceiling is $250,000.

The program called risk corridors, available only to insurers on the new exchanges, exists to even out premiums. If an insurer takes in more than it ends up needing, it gives some of the excess to the government. If its premiums end up being too low, the government will cover some of the losses.

The risk adjustment program takes money from insurers that had healthier-than-average customers and gives it to insurers with more-expensive customers. That removes the incentive by insurers to recruit only healthy customers.

The first two risk mitigation programs are in effect for three years, 2014 to 2016. Risk adjustment is permanent.

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Proud Liberal Dem Mar 2014 OP
frazzled Mar 2014 #1
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functioning_cog Mar 2014 #27
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Puzzledtraveller Mar 2014 #6
Proud Liberal Dem Mar 2014 #15
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unblock Mar 2014 #31
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functioning_cog Mar 2014 #24
Romulox Mar 2014 #9
functioning_cog Mar 2014 #23
Romulox Mar 2014 #30
functioning_cog Mar 2014 #32
LineLineLineLineLineNew Reply I said they may require a cash infusion this year. Your link confirms it. What are you arguing?
Romulox Mar 2014 #33
functioning_cog Mar 2014 #35
Fumesucker Mar 2014 #11
PasadenaTrudy Mar 2014 #12
functioning_cog Mar 2014 #21
PasadenaTrudy Mar 2014 #29
Jesus Malverde Mar 2014 #13
functioning_cog Mar 2014 #20
1000words Mar 2014 #16
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1000words Mar 2014 #22
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HereSince1628 Mar 2014 #25
functioning_cog Mar 2014 #28
pnwmom Mar 2014 #36
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