ACA's Risk Adjustment Hammers Small Plans Again

Thursday, June 30, 2016

Source: Modern Healthcare

Small, regional health insurers and upstart co-op plans again incurred large charges under the Affordable Care Act's risk-adjustment program, according to new data the CMS released Thursday

Calendar year 2015 marks the second year of risk adjustment, and many smaller insurers have had to pay into the program both years.

The data also show payouts for the ACA's reinsurance program. For ACA plans sold in 2015, the reinsurance payments total $7.8 billion. The temporary reinsurance program, which expires at the end of this year, protects health insurers against costly claims.

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