Issue Briefs
Date of this Version
9-2017
Abstract
Subsidized reinsurance represents a potentially important tool to help stabilize individual health insurance markets. This brief describes alternative forms of subsidized reinsurance and the mechanisms by which they spread risk and reduce premiums. It summarizes specific state initiatives and Congressional proposals that include subsidized reinsurance. It compares approaches to each other and to more direct subsidies of individual market enrollment. For a given amount of funding, a particular program’s efficacy will depend on how it affects insurers’ risk and the risk margins built into premiums, incentives for selecting or avoiding risks, incentives for coordinating and managing care, and the costs and complexity of administration. These effects warrant careful consideration by policymakers as they consider measures to achieve stability in the individual market in the long term.
Document Type
Brief
Volume
21
Number
7
License
This work is licensed under a Creative Commons Attribution-No Derivative Works 4.0 License.
Keywords
reinsurance, healthcare, ACA, health policy
View On LDI Website
https://ldi.upenn.edu/brief/stabilizing-individual-health-insurance-markets-subsidized-reinsurance
Included in
Health and Medical Administration Commons, Health Economics Commons, Health Policy Commons, Health Services Administration Commons, Insurance Commons
Date Posted: 31 October 2017