Risk adjustment and reinsurance are working as intended, says CMS

Fri, 07/07/2017 - 10:53
by Jeff Lagasse of Healthcare Finance News

The Affordable Care Act's risk adjustment and reinsurance programs are effectively compensating health plans that enroll higher-risk patients, according to a new report from the Centers for Medicare and Medicaid Services. The findings run counter to the notion that the individual health insurance market is crumbling.

CMS found that the transitional reinsurance program and the permanent risk adjustment program are "working as intended," protecting insurers against adverse selection within a state market and supporting them in offering a variety of different products.

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