There are three provisions of the Affordable Care Act (ACA), known colloquially, as the “three Rs.” They are: risk adjustment, reinsurance, and risk corridors. All are intended to promote insurer competition on the basis of quality and value and promote insurance market stability, particularly in the early years of reform.
Currently, the “risk corridor” provision is being scrutinized. Apparently, there is no appropriation language to get insurance companies money that might be due them. But the US Health and the Human Services department (HHS) has a plan in place.
This plan worries some, fearing the burden could land on the taxpayers back if enacted. Others say, there are safeguards in the healthcare law already, and the plan won’t be necessary.
So, what does this mean to the consumer? Higher premiums? Or nothing to worry about?
Yevgeniy Feyman, fellow at the Manhattan Institute. He writes on health care policy, entitlement reform, and the Affordable Care Act.
Dylan Roby, PhD, Director of Health Economics and Evaluation Research Program within the UCLA Center for Health Policy Research